Okay, so in today's video i want to show you this company called hems and hers health inc. The company, as you can see right here, looks like a dove of a cliff, a classic spec result, but in this case this seems to be more interesting that i initially assume this stock actually was shown to me by one of our subscribers and the more. I look into it. This 45 drop over the last six months seems like an opportunity now.

The first sign where you actually would see that this is not as bad as it seems. Is this little thing right here, so the short interest of this company is only six point, four percent, which means that at eight dollars and 21 cents most of the market, in fact, 93 of the market is not shorting. This stock, which is a really good sign, that this is a comfortable price now, obviously, this was hyped, otherwise this cliff doesn't happen. But the question is: how good is this company at this particular price, and before i do my own analysis, i always like to show you the tip rank stuff right so tip pranks meet my viewers.

My viewers made their pranks. Most of you know that i've been using tip pranks for over a year and a half they actually approached me, even though i am a paying customer of the service and they basically said hey you're, showing your stuff on the videos right. So here's an affiliate link. I said fine, why not? I love the product anyways, so there is an affiliate link in the description.

If you click it, you get a 10 discount on their premium software, which actually i am paying for so i was a paying customer in advance. So basically, what it gives me is the opportunity to see what other analysts are saying about the stock. In the case of hemes and hers, the ticker by the way is h. I m s hymns, so the stock price is currently at eight dollars: 21 cents.

The consensus is 11 for the stock, so a massive upside, as you can see, it's only like three dollars, but i mean for an eight dollar stock. That's a lot! So basically, i just weirded out everything: that's not five stars, so i just want to see what the five star analysts are saying. So we have these. I, i think one, two three four analysts and one doesn't have an upside down side rating, only a buy.

The other ones have 46 percent, 94.8 percent and 22. So these analysts, which are all five star, let me just show you an example what it means. It means that this dude is ranked in the top five percent out of seven thousand six hundred. And similarly, if you go through these analysts, you'll see that they're from citigroup - and you know this one is from piper sandler.

All these guys are quite accomplished, and you know they're good analysts objectively. So this would be the first indication for me to say: well, there might be something here and when i research a little bit more deep into it. The one thing i want to look at is the market cap right here, so the market cap is 1.6 1.7 billion dollars. Now this is a little hefty for a company.

That's making only 150 million trillion 12 months as i'm about to show you, but i think it makes a lot of sense. So i do want to show you this article. This was posted on seeking alpha by henry blumpster, shout out to henry actually one of the better articles i read recently on seeking alpha and he breaks down the business of this company. I suggest you read it.

It has a lot of good explanation about how this business works and what not. I just want to share this two paragraph, because they're really important to understanding what this company is. So this is basically a telehealth, a telemedicine company, but there's a really good explanation here, which henry actually provides, unlike the more widely known teledoc, which is primarily a b2b business himself, is a consumer healthcare brand. So, first of all right there and then i like this a lot.

I don't really believe in the b2b business as an opportunity to go ballistic. I've said it before about talenteer, for example, it needs to be a b2c business. If you look at the biggest best companies in the world, the top five or six they're all b2c - and i really like that approach but hold on a second so basically he's giving the breakdown of how you, basically, you know, get prescriptions. You get access to doctors, you don't have to drive waiting in the waiting room.

Obviously you know the pandemic made their business much more interesting than it really was before. But i got ta be honest with you. Telemedicine was a huge trend before the pandemic. Everybody was talking about telemedicine for years and years, so it only accelerated what's kind of inevitable.

I mean it's not really efficient to drive to the doctor's office. You know look for parking sit in the waiting room, full of patients, that's coughing at you and then drive back home. I mean, if you can do it from a comfortable home. I mean it's literally like going to the store and buying stuff versus buying on amazon.

So this is basically the development of healthcare, so i only see the pandemic as an accelerator of something that meant to happen. So i really like that business. The numbers are also very impressive, is about to show, but in this article he actually recaps very nicely by the way shout out to henry a really good article, so hims and hers are actually hymns and hairs health inc, new york stock exchange. H-I-M-S is a young company, it was founded in november 2017 so just three years ago, and it took only three years for the company to make an annual revenue of 150 million.

Now, if you had any sort of business experience or business consultancy experience, you'd know that getting to 150 million of revenue within three years. It's not easy. It's really impressive. Another way to describe the impressive start would be through the cumulative number of telehealth consultations, while hymns and harris had performed over 3.4 million telehealth consultations since its launch, this 3.4 million can be compared with taladoc that did 2.6 million visits just in 2020.

So he's basically saying well that looks like a lot right, but it took nearly two decades for turadoc to that that number basically 20 years to get to 2.6 million versus three years for this company to get to 3.4 million. So that puts it a little bit more into perspective now the gross profit margin, which is also very interesting, i'm about to share right now, went from 29 to 54 to 74 all in the span of three years. So in three years they went from 29 to 74 gross profit, which is really impressive and 80 gross profit is where you want to be as a sas company really like it. There's a lot more to read in this article, go right ahead and read it.

I think it's really good, but i do want to show you the numbers now that you understand kind of the business. It's a booming industry. It actually suffered because it's a spec, so it's packed and then it basically did what every spec does. It basically goes down.

45 last month, it's kind of going flat, as you can see, so i think it's an opportunity, but let me show you some more stuff, so this is the margins, as you saw earlier 77. That's the gross profit margin, which is really indicative of a good sas company. This is quite low, but if you look at the adjusted ebitda, it's much higher uh the ebitda minus 36 percent. I think it's just because a lot of the money goes back into marketing.

Growing market share so they're not expected to have a very high ebitda within the next couple of years, they're on the growth spurt, they're, basically trying to grab as much of the market as they can, and so those numbers are not really interesting. For me for growth company, but the 76.7 sorry 77 is a good indication that this is a good sas company. Now, if you look here, this is quite impressive, so we have 74 growth year over year and post reopening they're still doing 57.4 according to consensus estimate. So this is the post-mandemic reopening.

Obviously, if the ripening doesn't happen, this number will go up, but in the worst case scenario i mean worse as far as the company 57 is where they're gon na be next year. This is crowdstrike level numbers, and yet the price is plummeting, so this growth story seems to be in check at a very reasonable price. So if you look at the multiples right here, speaking of price, so price to sales is six, which is very reasonable. Ev sales is almost seven, which is very reasonable.

Ev sales next year is supposed to be at 5.3 depends, i mean if they sell even more with the pandemic coming back. This is really good pricing. This is not expensive, which is something you don't see every day. I mean in this stock market to see a growth company with good growth, good story, good industry and good financials, which i'm about to show you at a reasonable price, is very surprising.

I'm really shocked about this company. Look it lost 45. In the last six months. 41 last three months, so it really came down to this bargain basement level of pricing, which is really interesting for me as a potential investor.

So, looking at the finances right here, you can see the growth i mean it's pretty astonishing. Look. They went from 26.7 to 82.6 to 150 million 200 million trailing 12 months, so you can see the growth is going out of this world gross profit is very nice, and i mean the problem is: if you take a look at the cash cash equivalents, i'll show You so the ratios are insane i'll. Show you the problem, though, so the ratios are insane we're talking about 317, pretty much in accessible cash, total assets, 336, so 330 million in assets over current liabilities and total liabilities of 54..

So six times more assets than liabilities. Extremely impressive, no debt whatsoever, if i scroll all the way down you see, the total debt is zero, so no debt, this company is really well managed. Now, if you look at the cash flow, is there? Is there a problem with this company a little bit but not too bad, so cash flow wise? Their net cash from operation is 12 and a half million negative, not too bad over the last 12 months. But if you add in the capex, which is something they do have to spend, and basically all this other stuff, it they're not really profitable, they're bleeding money, but not too much.

I mean this 173 million is unusual because you can see investment in marketable inequity security. This is an unusual expense, so probably looking at about 30 to 40 million, as we can see in these previous years right here, which will give them a 10 year runway with the current cash position. So they don't really need a lot of cash now looking at their financials, this is actually getting interesting. So i specifically paused on this.

I want to show you something really interesting: that's indicative of a good company. So, as you can see right here for the first three months of 2020 versus the first three months of 2021, they doubled revenue, which is a really nice growth story, but hold on look at this cost of revenue, pretty much what it costs for them to make. Those sales only went up by three while this doubled from 35 to 60.. This only went up by 10 to 13 by 3 million, so a 25 million upside in revenue cost them only three added more millions, just for the cost of revenue, which is a really good sign.

It shows me that there's a lot of scalability starting to happen that this is a sas business, doesn't need a lot of money to scale up. This is something i always try to look at the difference between the growth and the cost of revenue, because if the cost of revenue is completely correlated to the growth, it's just meaningless, fluff numbers this, however, isn't this is a really good number now i do want To show you this, this is really important. This is the revenue of the company, the breakdown of the revenue. So, as you can see right here, while the wholesale business is pretty much stagnant, i don't think they really care about the wholesale business.

The online is where they're growing 33 to 58 61 to 108.. So basically, this is going for online revenue for telemedicine on the b2c level. I think it's a phenomenal business to be in i'm absolutely in love with this business model. I think they're going to make a lot of money, however they're not profitable, yet you have to remember this you're buying into a girl story, but it's down 44, since it's packed pretty much.

So it's a huge discount 8.21. The pranks are giving 11 everybody's talking about this company as the next big thing. The growth numbers are insane look at. The growth numbers here are pretty much wild revenue.

Growth is 57 for next year last, 12 months 74. So it's a growing company. A lot of growth, a lot of upside, and yet it's not priced in to the stock price, which is highly unusual. So for me this is easily an 11 stock.

I might even keep it at a higher price. I probably will, but at this point i'll give it an 11.. I can't do a cash flow dcf here, because it's a cash flow negative company. At this point, i need to see more numbers, or maybe in a couple of quarters i'll - do like a proper dcf when there's more data coming out of the cash flow of the company and how it works postpandemic, i don't want to use the covered numbers here.

So for me, even without a proper dcf, this is an 11 stock and i think it's going to be way higher than this, but you know we'll cross that bridge when we get to it. I hope you enjoyed this video. I hope this was helpful and let me know below what you think about this company. I definitely am a fan, but hey.

Let me know if i missed any issues, any problems and i'll see you tomorrow, you.