Hims & Hers Health, Inc. — Earnings Quality Grade F
HIMS · Healthcare
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 5 days, change +3 days YoY
AR growth 428.8% exceeds revenue growth 59.0%
Revenue 59.0%, CFFO 19.5%. Cash follows revenue
Expense Quality
Inventory 24.4% vs COGS 102.5%. Normal
CapEx growth 359.9% is >2x revenue growth 59.0%
SG&A/Gross Profit = 68.8%. Normal
Gross margin swung -5.6pp (79.5% → 73.8%)
Cash Flow Quality
CFFO/NI = 2.34. Profits backed by cash
FCF $0.1B, FCF/NI = 0.45
Accruals ratio = -8.0%. Low accruals
Cash $0.6B covers 52% of debt $1.1B
Balance Sheet Health
Goodwill+Intangibles $0.5B = 88% of equity. Over 50%
Debt/EBITDA = 7.0x (>4x). Financial stress
Other assets grew 2859.1% vs revenue 59.0%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 204% YoY
Manipulation Score
M-Score = -0.25 (> -1.78). LIKELY MANIPULATOR
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25