Hims & Hers HealthHIMS +3.76%81 Gross Margin % is 65.25% as of Mar. 2026, which is 13% below its 10-year median of 75.22. GuruFocus rates HIMS with a GF Score™ of 81/100 and a GF Value™ of $38.70 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 938 Drug Manufacturers companies, Hims & Hers Health ranks better than 84.12% on this metric.
The historical rank and industry rank for Hims & Hers Health's Gross Margin % or its related term are showing as below:
HIMS'
s Gross Margin % Range Over the Past 10 Years
Min: 54.03 Med: 75.22 Max: 81.99
Current: 71.72
During the past 7 years, the highestGross Margin % of Hims & Hers Health was 81.99%. The lowest was 54.03%. And the median was 75.22%.
HIMS's Gross Margin % is ranked better than 84.12% of 938
companies
in the Drug Manufacturers industry
Industry Median: 48.44
vs HIMS: 71.72
Hims & Hers Health had a gross margin of 65.25% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Hims & Hers Health was 0.70% per year.
Hims & Hers Health (NYSE:HIMS) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Hims & Hers Health had a gross margin of 65.25% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Hims & Hers Health Gross Margin % Related Terms
Hims & Hers Health Gross Margin % Historical Data
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The historical data trend for Hims & Hers Health's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HIMS vs LNTH, LQDA, ALKS: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Hims & Hers Health's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hims & Hers Health Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Hims & Hers Health's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hims & Hers Health's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Hims & Hers Health (HIMS) has a Gross Margin % of 65.25% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hims & Hers Health and its competitors. This is 13% below median its historical median of 75.22. Over the past decade, Hims & Hers Health's Gross Margin % has ranged from 54.03 to 81.99. According to the industry distribution chart, Hims & Hers Health ranks #149 out of 938 companies in the Drug Manufacturers industry, placing it in the top 15.9%.
Is Hims & Hers Health's Gross Margin % too high?
Hims & Hers Health's current Gross Margin % of 65.25% is 13% below median its 10-year median of 75.22. Over the past 10 years, this metric has ranged from a low of 54.03 to a high of 81.99. The Drug Manufacturers industry median Gross Margin % is 48.44. Hims & Hers Health's value of 65.25% is 34.7% above this industry median. Based on the distribution chart, Hims & Hers Health ranks #149 out of 938 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Hims & Hers Health has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hims & Hers Health's Gross Margin % compare to LNTH and LQDA?
According to the Drug Manufacturers industry distribution chart, Hims & Hers Health ranks #149 out of 938 companies for Gross Margin %. This places Hims & Hers Health in the top 16% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.44. Hims & Hers Health's value of 65.25% is 34.7% above this benchmark. Historically, Hims & Hers Health's own Gross Margin % has ranged from 54.03 to 81.99 over the past decade. While the company's 10-year median is 75.22 vs. the industry median of 48.44, Hims & Hers Health has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.44, based on 938 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hims & Hers Health's current Gross Margin % of 65.25% is 34.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Hims & Hers Health and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hims & Hers Health's current Gross Margin % is 65.25%, which is 13% below median its own 10-year median of 75.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hims & Hers Health stock overvalued right now?
Based on GuruFocus' analysis, Hims & Hers Health (HIMS) is currently considered Modestly Undervalued. The stock's GF Value™ is $38.70, compared to a current price of $33.94 — trading 12.3% below its estimated fair value. The current Gross Margin % is 65.25%, which is 13% below median its 10-year median of 75.22 and 34.7% above the Drug Manufacturers industry median of 48.44. Hims & Hers Health's overall GF Score™ is 81/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Hims & Hers Health (HIMS), the current Gross Margin % is 65.25% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hims & Hers Health (HIMS) Overvalued in 2026?
Based on GuruFocus' analysis, Hims & Hers Health stock appears to be undervalued.
The current stock price of $33.94 is trading 12.3% below its estimated GF Value™ of $38.70.
GuruFocus considers Hims & Hers Health to be Modestly Undervalued.
Key valuation signals for HIMS:
Gross Margin %: 65.25% (13% below median its 10-year median of 75.22)
GF Value™: $38.70 vs. price of $33.94 (12.3% below fair value)
Industry Position: 34.7% above the Drug Manufacturers median (#149 of 938)
No single metric tells the full story. See the HIMS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hims & Hers, launched in 2017, is a telehealth platform that connects patients and healthcare providers to offer treatment options for specialties like erectile dysfunction, hair loss, skin care, mental health, and weight loss. Its offerings include generic, branded, and compounded prescription drugs as well as over-the-counter medicines, cosmetics, and supplements. The platform, which has more than 2 million subscribers, is available in all 50 states and certain European markets like the UK. It includes provider networks, electronic medical records, cloud pharmacy fulfillment, and personalization capabilities. Hims does not take insurance and only accepts payments directly from customers.
81GF Score
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