Hims & Hers (NYSE: HIMS) is poised to disrupt the complicated U.S. healthcare market by selling affordable medications directly to consumers, bypassing insurance complexities. The telehealth platform’s revenue is projected to reach $6.5 billion by 2030, with a forecasted $2 billion in revenue for 2025. The stock has seen significant growth, rising 118% year-to-date and 446% over five years.
Hims & Hers operates two platforms for men and women, targeting areas like sexual health, dermatology, and weight loss. It recently partnered with Novo Nordisk to sell the weight loss drug Wegovy directly on its platform, which could enhance its growth. The company also aims to expand into Europe through the acquisition of Zava, adding 1.3 million active customers across several European countries.
Currently, Hims & Hers has 2.4 million active customers and a 77% gross profit margin, with potential for a net profit margin of over 20% by 2030. Its market capitalization stands at $12.3 billion, representing an attractive multiplier of approximately eight times projected earnings by 2030.
