Hims & Hers Health, Inc. (HIMS) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Jun 27, 2026
Hims & Hers Health, Inc. (HIMS)
A forensic read on Hims & Hers Health, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Grey Zone
Financial health
1.6
Altman Z-score
Watch
Earnings quality
5
Forensic signals
-2.5%
ROE
$7.9B
Market cap
Hims & Hers Health, Inc. earns a C (Mixed — selective) forensic quality grade, and its Altman Z-score is 1.6, placing it in the Grey zone. 5 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
7%Return on invested capital.Return on invested capital is 7% and rising from -20% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+8.8%/yrShare-count dilution.Diluted share count changed +26% over the last 3 years to FY2025 (+8.8%/yr). The count is GROWING — existing holders are being diluted. That's ~8.8% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~26%.
6% of revStock-based comp load.Stock-based compensation ran 6% of revenue and 236% of free cash flow in FY2025 — about $0.52 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
+19.8%Accruals ratio.Net operating assets grew +19.8% relative to their average in FY2025 — the accrual component of earnings. Accruals are building faster than is comfortable — part of profit sits in receivables, inventory or capitalized costs rather than cash. The cash-flow cross-check agrees: reported earnings ran behind operating cash by -60% of net operating assets.
157% of FCFShareholder returns.Returned $90M to shareholders (buybacks + dividends) in FY2025 — 157% of free cash flow, but 30% of operating cash flow. Returns run ahead of free cash flow because the business is also funding heavy growth capex (usually debt-financed); the payout itself is covered by operating cash — sustainable as long as that spending is genuine expansion, not upkeep.
Key fundamentals
Net Margin5.5%
Debt / Equity0.00x
Free Cash Flow$57.4M
Latest Revenue$2.35B
Return on Equity23.7%
Revenue Growth YoY+59.0%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Hims & Hers Health, Inc.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about HIMS's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown