I'm Back Buying Hims & Hers Stock AGAIN!
Summary
TLDRThe speaker discusses their decision to reinvest in Hims & Hers stock after a recent dip, having first bought the stock in October 2023 at $6. Despite a temporary drop, the company continues to show strong financial performance, including significant revenue and subscriber growth. The video highlights the company's focus on telehealth, expanding markets, and its impressive profitability trajectory. The speaker believes the stock presents a long-term investment opportunity with potential for high returns, and shares their optimism about the company’s future, citing its ability to consistently exceed expectations.
Takeaways
- 📈 The user is back to buying Hims & Hers stock, which they first purchased in October 2023 when it was $6.
- 📉 Recently, the stock has fallen, presenting a potential buying opportunity as the user sees higher return potential now.
- 🤓 The user runs numbers and finds bigger potential returns compared to a year or two ago, indicating confidence in the stock's future performance.
- 📊 The company has consistently delivered impressive earnings, with a 51% year-over-year revenue growth and a 43% increase in subscribers.
- 🌟 The user highlights the company's successful performance and potential for future growth, despite recent stock price volatility.
- 📉 The stock has fallen nearly by half since June, but the user believes this is due to short-term investors rather than any fundamental issues.
- 🏥 Hims & Hers focuses on telehealth, offering personalized and affordable healthcare, especially appealing to younger generations.
- 🧴 The company has recently launched a successful weight loss product, adding to its diverse healthcare offerings.
- 💰 Financially, the company is strong with high gross margins, profitability, and a solid cash balance, enabling share buybacks.
- 📈 The user sees long-term potential in the stock, expecting significant returns and considering it a potential major position in their portfolio.
Q & A
What is the focus of the YouTuber's video?
-The YouTuber focuses on providing an update on Hims & Hers stock, discussing why it has recently dipped, analyzing the company's financial performance, and sharing predictions for the stock's growth over the next five years.
When did the YouTuber last buy Hims & Hers stock, and what was its price at that time?
-The YouTuber last bought Hims & Hers stock in October 2023, when it was priced at $6.
What has caused the recent dip in Hims & Hers stock price?
-The YouTuber believes that the recent dip is caused by short-term investors and hype around the GLP-1 weight loss injections, as well as Wall Street speculation, rather than any fundamental issues with the company.
What financial performance highlights does the YouTuber mention for Hims & Hers?
-The company achieved a 51% year-over-year revenue growth, a 43% increase in subscribers, and consistently beats earnings expectations, which the YouTuber describes as strong financial performance.
How does the YouTuber describe Hims & Hers' earnings results over the past two years?
-The YouTuber notes that Hims & Hers has consistently delivered '10 out of 10' earnings results, with strong revenue growth and frequent earnings beats, despite occasional drops in stock price following these reports.
What industries does Hims & Hers operate in?
-Hims & Hers operates in various industries, including dermatology, mental health, and weight loss, all of which are multibillion-dollar markets with growth potential.
What recent development in the weight loss market has impacted Hims & Hers stock?
-Hims & Hers recently launched a weight loss program targeting $100 million in revenue, which it achieved much faster than expected. However, news about the end of a GLP-1 drug shortage led to a drop in stock price.
How does the YouTuber view Hims & Hers' long-term potential?
-The YouTuber views Hims & Hers as a strong long-term investment, with the potential for significant growth over the next few years. They believe the company could become more profitable and continue to expand its presence in large markets.
What valuation multiples does the YouTuber use to estimate the potential return of Hims & Hers stock?
-The YouTuber uses different multiples for conservative, moderate, and optimistic estimates, ranging from 20x to 60x earnings. They believe that, under optimistic scenarios, Hims & Hers stock could deliver a nearly 10x return.
What is the YouTuber's plan for their Hims & Hers investment moving forward?
-The YouTuber plans to increase their position in Hims & Hers, even considering it as a potential largest holding in their portfolio. They view the stock as a winner and intend to keep backing it.
Outlines
💼 Back to Investing in Hims and Hers
The video starts with the creator discussing their return to buying shares of Hims and Hers, a stock they initially invested in when it was valued at $6 in October 2023. The stock has since performed well, but after a recent dip, the creator believes the company now has even more growth potential than previously thought. The video promises to provide an updated analysis of the stock, explaining why it has dipped and what the future holds for the company over the next five years.
📊 Key Performance and Growth Potential of Hims and Hers
The creator reflects on the early days of investing in Hims and Hers, noting the stock's initial lack of coverage but its steady rise in popularity, particularly among YouTube stock market channels. They mention how the company consistently beat earnings expectations, though the stock faced challenges during the 2022 bear market. Despite the recent dip from $22 to nearly half its value, the creator believes the stock’s fundamentals are strong, and this is an opportune moment for long-term investors to buy more shares.
🚀 Financial Success and Impressive Growth Metrics
The financial performance of Hims and Hers is highlighted, focusing on the company’s ability to exceed expectations in terms of revenue and subscriber growth. The company reported a 51% year-over-year revenue increase and a 43% rise in subscribers. The video emphasizes that the management team consistently sets conservative targets and then outperforms them. The company’s growing profitability, high gross margins, and strong cash flow indicate that it’s well-positioned for continued success in the telehealth space.
📱 Why Telehealth is a Game Changer
Telehealth is presented as a major growth sector, especially popular with younger generations who value easy access and personalized healthcare. Hims and Hers offers affordable healthcare solutions, making it convenient for people to consult with doctors via their phones. The company operates in billion-dollar markets like dermatology, mental health, and weight loss, and its rapid growth in new categories, like weight loss, demonstrates its ability to expand quickly and capture market share in emerging sectors.
📈 Strong Financial Indicators and Profitability
Hims and Hers' robust financial performance is underscored by significant growth in subscribers, revenue, and profitability. The video delves into the company's 41% subscriber growth, 50% revenue growth, and impressive 75% gross margins. The company’s strategy to consistently deliver strong financial results with low customer churn rates has allowed it to generate increasing amounts of free cash flow, and its healthy cash reserves position it well for future growth initiatives, including share buybacks.
🔍 GLP-1 Hype and Market Volatility
The video addresses the recent volatility in Hims and Hers’ stock, largely driven by hype surrounding GLP-1 injections, a weight loss product that temporarily boosted the stock price. However, the shortage of the product may soon end, which has caused the stock to fall back. Despite this, the creator believes that the hype around GLP-1 was never meant to be a long-term revenue driver and argues that the company’s fundamentals, which showed a 44% year-over-year growth even without this product, remain strong.
💡 Conservative Numbers, Big Upside Potential
The creator runs through updated financial projections for Hims and Hers, noting that even conservative estimates suggest strong future growth. The company is expected to grow its revenue at 25% annually and could achieve profit margins of 12%. The video highlights the potential for the stock to deliver significant returns, with the possibility of becoming a '10-bagger' (10x return). Despite these ambitious numbers, the creator emphasizes that their projections are conservative, meaning there could be even more upside.
🌟 Why I’m Buying More Shares of Hims and Hers
In this final section, the creator reaffirms their confidence in Hims and Hers as a long-term investment. Despite having taken profits earlier, they are now buying more shares, seeing it as a prime opportunity to increase their position. The stock, already their second-largest holding, could soon become their largest due to its strong performance and growth potential. The creator urges viewers to subscribe to the channel for more updates and insights into their investment strategy.
Mindmap
Keywords
💡Hims and Hers
💡Telehealth
💡Revenue Growth
💡Profit Margins
💡GLP-1 Injections
💡Stock Market Volatility
💡Earnings Beat
💡Founder-Led Company
💡Share Buybacks
💡Market Multiple
Highlights
The user is back buying Hims & Hers stock for the first time since October 2023, when the stock was priced at $6.
The stock has been a good performer, with significant returns for the user and viewers of the YouTube channel.
Despite a recent dip in stock price, the user believes the long-term return potential is even higher than before.
The stock had surged 300% at one point, and although the user sold some shares during this peak, they see another buying opportunity now.
Hims & Hers continues to beat earnings expectations, with revenue growth of 51% year-over-year and subscriber growth up 43%.
The company’s financial performance has consistently exceeded projections, with strong profitability and improved metrics.
The stock has fallen nearly 50% since June 2024, despite no significant issues within the business, which the user attributes to short-term market dynamics.
The user sees this decline as a chance to buy shares at a good value, especially for long-term investors.
Hims & Hers' focus on telehealth services, personalized healthcare, and affordable access continues to drive its success, especially among younger generations.
New product categories like weight loss have shown strong performance, reaching $100 million in revenue within half a year.
The company’s gross margins are 75%, contributing to strong profitability, with long-term adjusted EBITDA margins projected to be between 20-30%.
Hims & Hers is forecasted to generate nearly $108 million in free cash flow by the end of 2024, with no debt and a cash balance of $227 million.
Ownership remains strong, with the founder still holding 8% of the company, and the user expresses confidence in the leadership.
The user attributes the recent stock dip to hype surrounding GLP-1 injections for weight loss, but emphasizes that this only makes up 4% of the company’s revenue.
The user anticipates strong long-term growth, projecting a potential 600-1000% return over the next five years, driven by sustained revenue growth and profitability.
Transcripts
so yes you did read the video title
correctly I am back buying HS and hair
stock the first time I bought hims and
hairs since October 2023 when the stock
was only $6 and obviously since then
it's been a very good performer for us
for me the YouTube channel some of you
guys as well I now own the stock but
recently the stock has had a bit of a
fall and I have rerun the numbers and
I'm actually seeing even bigger numbers
now for the return than where I saw them
a year ago two years ago H which is kind
of crazy to think about and um today I
thought i' just give you an updated
where the stock is at why the stock is
having a dip and also some numbers that
I think the stock could do in the next
kind of five years and obviously you
know it's uh crazy now because obviously
him and hairs was uh only really
mentioned on this YouTube channel like
we are kind of like the OG hims and
hairs Channel and uh now whenever I go
on YouTube I see just so many of the
stocks kind of talking about stock
market channels talk about him and hers
and uh obviously you know to think about
you know back two years ago like there
was nobody talking about this stock on
the YouTube channel I think I was
probably the first person to cover it on
the YouTube channel and now uh obviously
there's a lot more people interested but
yeah it's a good opportunity again so uh
we're going to go through it today hope
you enjoy it hit that like button let's
get started now if you do want to see
when I do buy any him and her shares
I'll sell them obviously we've sold some
as well previously while the stock was
running up for like 300% return then the
play be is on the patreon you get to
know what I'm buying and selling in real
time time only5 and you also get two
exclusive videos a week on there and
also if you do want to buy some him hair
shares join the link for trading to him
too that's personally the investing
platform that I use and the obviously
the investing platform I buy my hims and
hair shares in anyway I was looking on
YouTube the other day and we see here
that I've got a lot of coverage on him
and hairs but this video from two years
ago and I said hims and hairs is a fall
this fall dollar stock is on fire and I
actually watched a bit of it and what
made me laugh about it is that this is
when obviously the uh when this stock
actually started bringing out Mega
earnings and the St you remember when
that time when the stock brought them 10
out of 10 earnings and you can even see
it right now on the screen like the
stock popped up 20% and then it used to
just give it all back and end up
negative on the day I don't know if any
of you guys used to remember those days
when them 10 out of 10 earnings came out
and then the stock used to absolutely
collapse it was a it was a really
frustrating time obviously there was the
kind of 2022 bare market and we are out
of that now but it just shows you
doesn't it you know sometimes the stock
market only a year ago two years ago
goes oh this Stock's a $4 stock and then
obviously from there it's you know from
$4 it's it's ended up being a $16 $16
stock nearly a five bagger but look at
the stock I mean it's still performing
quite well you know the stock is still
up 41% year today but rarely since uh
July time which isn't even really that
long ago the stocks Fallen uh quite a
bit and since J June time uh the stock
was actually a $22 stock it's actually
Fallen uh nearly by half and you're
thinking that's quite a dramatic fall in
a quite a short period of time you know
to to lose nearly half your market cap
half your value you would think there's
something significantly going wrong with
the business and for me there isn't I
think maybe a few people have just got a
bit caught up in the hype people are
trying to make quick money people a lot
of Wall Street they're trying to guess
where the Stock's going to be in two
three years time uh two three months
time are kind of jumping on the bang
wagon and I think really if you're a
long-term investor like you know if
you've been holding it for the last kind
of couple years I think this is maybe
another opportunity to go get some
shares at some good value and uh that's
what we're going to talk about today now
financially the comp the company has
absolutely smashed it the last earnings
um actually this isn't even the last
earnings this is qy1 earnings I'm a
little bit behind there and but if we go
on the last earnings if we can find them
very quickly for you they were actually
amazing we had another Mega um EPS beat
as you can see here Revenue growth of
51% year-over-year which is very
impressive subscribers up 43% and once
again we have a major upgrade on the
guidance you know it was a beat they
just keep beating and beating numbers
and this is the great thing that we've
had from him and hers is they just carry
on beating numbers the management team
sets out low well not low numbers
they're already quite impressive numbers
but they consistently sandbag and then
overd deliver which is an amazing thing
to be o owning as well and uh what we're
seeing as well inside all the companies
metrics is the metrics are just getting
better and better and better the
profitability ramp it up and now we're
talking about coming at 66 times
earnings I tell you guys you know a 51%
year-over-year growth company at 66
times earnings is H obviously quite
attractive but as well as that it's
going to very quickly grow into that
that valuation you know the big thing
about stock market investing is all
about being future thinking you know
you're looking at three four years am I
going to get am I right now getting a
cheap company for what they'll be doing
in three or four years and I think that
is the case for him and hers especially
with the the numbers they're doing but
let's just go back to basics you know
what does the company do well it's a T
Health Service so T Health is a key
obviously there was a big boom Jo 2021
but it's only continued and especially
with the younger generation because what
they want is more personalized Health
they want to also get access easy access
to the platform so people don't want to
travel to the doctors nowadays they
don't want to go into the place where
the people are coughing everywhere and
you got to travel to it and then you got
to wait around people just want to log
on on the phone easy access get your
subscription nice and easy if you want
to see a doctor just put it on your
phone you can carry on doing jobs around
your house you don't have to travel and
get that easy access and the other thing
is Affordable people want cheaper
Healthcare especially in the US and
that's what him and hers is able to
provide to a lot of their subscribers
and if you look at some of the markets
to do lot of the mark markets have uh
like sh Dermatology Mental Health weight
loss which are big major uh categories
you know these are multibillion
categories that they have here and
there's potential for them to carry on
expanding into these categories one of
the new ones that recently launched is
the weight loss uh this was a new
category they launched this year and uh
was the Target to get to 100 million
revenue and uh it's already there in
this time frame you know this was
supposed to take a year to get there and
they've done it within like half a year
which has been very impressive and
obviously when you're only taking even
if you only take a percentage of a
multi-billion industry that's how your
company can still be a very big company
um in when you're having these big
Market spaces like a a health industry
for example and when you look at the
numbers they've executed to Perfection
subscriber growth is up 41% Revenue
growth is up this is for the key one
numbers by the way and we' just seeing
that we're actually growing 50% in the
last quarter uh 46% in the last quarter
8.4 Just DE with imin which if you look
at the improvement from last quarter is
very good 90% of reoccurring Revenue as
well lovely having a SAS business you
know SAS businesses normally trade at
premium as well gross margins 75% that's
why they're able to make so much
profitability and under a oneyear
payback and if you look at the growth I
mean look at the growth here the
quarterly Revenue growth has been very
impressive just nice staircase upwards
very high gross margins for those
profitability and if you look at the
adjusted EV point of view look at the
ramp up since we obviously we talked
about the video from when we were
talking about whenn as a $4 stock look
at the profitability that's just been
ramping up and they just see more and
more Improvement you know you look at
the longer term Outlook of this year
they've hiked that up and you know at
the start of the Year analysts were
expecting this coming to grow like 20%
and at some point this growth will slow
down but even now it's just absolutely
insane and the thing is you know look at
these the guidance here it's the
guidance they're doing for the next
quarter is just so much higher than the
full year guidance it's going to get
hiked up even more this year and AD
justed even margin as well you know you
look at that and you look at the
long-term guidance you know long-term
guidance is 20 30% adjusted even the
margins and if you look what they're
doing right now which is our forecast to
do around about 10% at the moment you
know that is H where the profitability
is going to come through there's going
to be very high profit margins and they
still think from here they can uh you
know double and even triple the adjusted
even margin so there's going to be good
amounts of profitability coming off this
business um if we look at the past
performance and the future performance
you can see the execution here just look
at that Revenue growth just look at the
profit growth look at the free cash flow
that's ruming up on the business by the
end of the year you know what we like
five months away we're going to be
talking about C that's nearly doing 108
million 109 million in free cash flow
obviously that's very good and that
should just continue and because
obviously they're throwing off that
profitability here we're going to have a
nice profitable business that puts a lot
of that cash onto the balance sheet and
they've got no debt cash balance wise
they sit on a really healthy cash
balance of 227 million that's why
they're able to do things like share
BuyBacks that they currently have going
on right now and ownership wise a few
people criticized the owner Andrew
Dunham I think he's done a Absolut
fabulous job here this company is
something like seven years old eight
years old and you look at what he's
doing he's absolutely amazing he still
owns 8% of the business and it's a
Founder Le company and uh hopefully that
continues say everything here is looking
very positive so what are the like
negatives why is the share price you
know down nearly 40 50% there must be
something in there and I kind of hinted
it at the start but I think there's a
few people that are getting in here for
short term rather than long term and
that's what's being causing the pain at
the moment and a lot of that volatility
comes around this the uh glp1 injections
so if you don't know there was a a new
weight loss product launched which was a
glp1 injection basically you go get this
injection and it makes you not feel as
hungry and uh what that ends up doing is
you would don't end end up eating as
much and uh it's not like the normal
kind of weight loss programs where you
have to actually do some sort of
exercise um and it's getting very
popular because the people can have
these injections it's proven that it
helps people lose weight as far as we're
mostly aware it's a safe product and
we've seen a lot of celebrities at the
moment a lot of celebrities have come
out to there you know the reason why
I've lost a lot of weight is because of
these injections and um you know a lot
of this is produced by a company like
Eli Lily for example and uh what
happened is because the products were so
popular what Eli Lily had to do is
actually let other companies make this
weight loss product which obviously him
and hair started doing now what has
happened recently is they've come out
and said we think that the drug shortage
is at an end very soon and for a company
like K and hairs that have had access to
it people got excited you can basically
see where the announcement came out and
the stock actually rallied up huge for
it a lot of people that are short-term
thinking went oh this is going to be
major for him in his and got carried
away with it and now we've seen that the
you know the potential shortage is going
to come to an end quite quickly if all
them people that jumped in the hype are
jumping back out again and I think what
has happened is the stock has actually
gone that low that it's actually quite
attractive valuations if you now a
long-term investor a lot of people you
know people panic when the stock goes
down there'll be some people that jumped
in here and actually sold it for you
know quite a big loss and I think that
that's actually created an opportunity
because what people are ignoring is
they've got caught on this glp hype
they're not looking at the the
fundamentals of the business that are
just improving and improving ahead of
expectations and what frustrates
frustrates me a little bit as well with
the G glp1 side of it is that you know
people maybe got carried away with this
we always knew this wasn't going to be a
long-term Revenue driver for the hims
and hairs business so it's not something
that should have been considered and as
well as that when you look at the recent
earnings for hims and hers the company
still grew 44% year-over-year without
this glp W in the latest quarter and the
glp one only makes up like 4% of the
revenue growth of this business so even
if that was to disappear of the business
the business is still having fantastic
numbers without this here and I think
that just so many people got caught up
in the short term that people forgetting
how good of a company this could be in
the long term and just to show that
let's have a look at some numbers now I
actually think the numbers are even
higher than where we were when I last
did this video so when I last did the
hims and hers numbers in 2013 the
numbers are are actually that higher now
than what I was expecting that the
upside is probably even higher than when
I did it in
2023 now I put Revenue growth of 18 22
25% in now this company is still growing
40 plus% a year so I'm assuming a big
slow down in the revenue here so the
numbers that I'm even putting in are
quite sandbagged at the moment on a
profit margin point of view I've put 5 8
12% now I think they can easily obious
we saw 20 30% adjusted EV margins I
would expect them to get to 10% profit
margins either now the only number
that's above a 10% profit margin is the
high side so I've even been conservative
on the profit margin I put 20 times
earnings in which once again I think if
you're coming and doing these numbers
there's no way you're going to be
trading at 20 times earnings but I went
with the market multiple we'll we'll up
that in a second now on the low side
yeah I mean if they did these numbers
I'd be so um disappointed with them but
you're only down 10% which isn't
terrible midside 100% upside which is
what we look for when we buy a stock in
my opinion that's what I invest for is
100% return in the next 5 years and we
are getting that on the midside on and
on the high side we're getting some nice
upside there now like I said I think
these numbers were a bit conservative so
I think the company can realistically
grow at 25% in the next 5 years on a
kaga basis obviously you know I think
the first couple of years will be at
least 30 plus% Revenue growth by the
time we get towards maybe the back end
of the next five years that might be
getting towards the lower 20% growth so
I think 25% on will be a good kind of
guess I think I'm going to stick with
that 12% profit margins I think they are
definitely achievable in the business
I'm not going to change that at all now
on a multiple I think the company will
obviously do if they're doing these
numbers for me it's not a 20 times
earnings business um I think it's going
to be higher now let's start off with
the 40 times earnings you've got nearly
a 600% return on the stock but I
realistically think you know you're at
least going to be talking this company
trades at like 60 times earnings on
these numbers and you're getting nearly
a 10 bagger right now on those numbers
now there's a lot of assuming that the
numbers go to Perfection and that's
obviously not always the case with
investing but realistically I do think
will be on this higher side and like I
said on the very bullish case I think we
could be staring at hims and hers 10
bagger here and even if I didn't have a
position I'd be buying obviously I've
still got a position but I'm willing to
average up here because I think the
upside is still looking very attractive
and if anything why would I would why
would I not want to buy more of this
winner you know what's the old saying
you know water the flowers trim the
weeds don't be yeah don't be trimming
the flowers and watering the weeds in
your portfolio if you've got a winner in
your portfolio you know keep back in it
and I look at him and hers and it's
probably the stock in my portfolio
that's executed to the Perfection the
most every single quarter I look look at
them I just think it's even better than
what I expected it's another 10 out of
10 earnings the EPS is just higher than
what was expected the revenue was higher
than expected they hike up the guidance
again they've got an amazing balance
sheet you know you think about the the
you know we talk about the profit that
potentially could be throwing off in
five years time 500 million they could
be throwing that into dividend or share
BuyBacks the opportunity here is just
you know enormous and I think just you
know why not buy more so i' over the
last kind of year I've took quite a bit
of profit off the table because I've
been up on this position you know quite
an attractive amount at times and the
the position is still a big position
it's my second largest position still
but I have took profit off the table and
I think now now is the time where I put
some of that back into the business and
you know it's my second largest position
but realistically can I see him ton as
come in my largest position yeah I think
so you know I think that the what I look
at here the number wise it looks very
attractive and uh I will continue to buy
more so yeah I am making a video today
saying that I am back buying him and
hers shares for the first time since
October
2023 and um thought I'd make you guys
aware of that uh hope you enjoyed the
video if you could hit the like button
if you're new around here or you've been
long turn watch if you know make sure
you subscribe we're very close to the
16,000 subscribers so if you can get me
there that'll be absolutely amazing
apart from that I'll see you in a bit
[Music]
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