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hims - AI Stock Analysis

Analysis generated January 17, 2025

hims is a telehealth company that provides a range of health and wellness services and products. The company focuses on men's and women's health, offering treatments for conditions like hair loss, erectile dysfunction, skin care, and mental health. hims aims to destigmatize these health issues and make healthcare more accessible to people via its online platform. The company has been experiencing notable growth, attracting a substantial customer base and expanding its product offerings.

Fundamental Analysis

In the last quarter, hims reported revenue of $402 million, marking a 27.22% increase compared to the preceding quarter and a 77.13% increase year over year. These figures indicate robust growth and a solid demand for hims' offerings.

Net income for the same period was $76 million, exhibiting a staggering increase of 468.46% from the previous quarter and an even more impressive 1,098.92% compared to the same quarter last year. Such figures suggest significant improvements in the company's operational efficiency and profitability.

The EBITDA for the last quarter stood at $23 million, which is a 96.74% increase quarter over quarter and a 400.15% increase year over year. This is indicative of a healthy balance sheet and strong cash flow management.

However, the current Price to Earnings (P/E) ratio stands at 63.32. While high P/E ratios can sometimes signify growth potential, they often indicate overvaluation. Investors should be cautious as this may represent a bearish outlook.

Additionally, recent insider selling of the company's stock can be a bearish signal, suggesting that some insiders believe the stock may have peaked in the short term.

Technical Analysis

Today’s stock price is $27.94, down by 10.22% over the last month, which could be a cause for concern in the short term. However, it has increased by 231.83% over the past year, suggesting a strongly bullish long-term trend.

The current SMA10 (Simple Moving Average) is 26.35, slightly up from the previous SMA10 of 26.33. This subtle increase might imply potential upward price movement.

The RSI (Relative Strength Index) is at 61.6, indicating a neutral condition. While this does not suggest immediate overbought or oversold conditions, investors should monitor RSI trends closely for any significant changes.

Alternative Data Analysis

Regarding job postings and employee sentiment, hims currently has 60 open positions, a decrease of 35% in the past couple of months. This could indicate that the company is looking to cut costs or improve its margins, which is not an encouraging sign for a growing entity.

Employee business outlook is neutral but has declined by 7% recently, another worrisome trend.

Customer acquisition metrics show that hims' website attracted approximately 320,000 visitors. However, this number has dropped by 34% in recent months, suggesting potential issues in retaining or attracting new customers.

On the engagement front, hims has a stable 210,000 followers on Instagram and has seen a 24% increase in Twitter followers, signaling a growing interest in the company on social media platforms.

AltIndex's AI score for hims is 48, which indicates a 'hold' signal. This AI score considers various metrics including fundamental, technical, and alternative data.

Conclusion and Recommendation

Overall, hims shows strong fundamental growth in terms of revenue, net income, and EBITDA. However, the high P/E ratio, recent insider selling, and mixed alternative data pose some risks. Technically, the stock displays a bullish long-term trend but has shown short-term declines. The alternative data, including job postings, employee sentiment, and customer acquisition numbers, suggest some potential challenges ahead.

Considering all the data, a cautious approach is advisable. A 'hold' recommendation aligns well with the observed metrics, awaiting further clarity on both short-term challenges and long-term growth potential.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.