Hims & Hers Health, Inc. (NYSE:HIMS) shareholders should be happy to see the share price up 22% in the last month. But that doesn't change the fact that the returns over the last three years have been less than pleasing. In fact, the share price is down 28% in the last three years, falling well short of the market return.

While the stock has risen 6.4% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

See our latest analysis for Hims & Hers Health

Given that Hims & Hers Health didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over three years, Hims & Hers Health grew revenue at 58% per year. That is faster than most pre-profit companies. The share price drop of 9% per year over three years would be considered disappointing by many, so you might argue the company is getting little credit for its impressive revenue growth. It seems likely that actual growth fell short of shareholders' expectations. Still, with high hopes now tempered, now might prove to be an opportunity to buy.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. You can see what analysts are predicting for Hims & Hers Health in this interactive graph of future profit estimates.

A Different Perspective

We're pleased to report that Hims & Hers Health rewarded shareholders with a total shareholder return of 21% over the last year. That certainly beats the loss of about 9% per year over three years. It could well be that the business has turned around -- or else regained the confidence of investors. It is all well and good that insiders have been buying shares, but we suggest you check here to see what price insiders were buying at.

Hims & Hers Health is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.