AIM:IHC

Stock Analysis Report

Inspiration Healthcare Group

Executive Summary

Inspiration Healthcare Group plc, together with its subsidiaries, provides medical devices for use in critical care, operating theatre, and home healthcare applications worldwide.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.

Share Price & News

How has Inspiration Healthcare Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IHC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.5%

IHC

2.3%

GB Medical Equipment

3.9%

GB Market


1 Year Return

4.6%

IHC

-1.5%

GB Medical Equipment

-22.4%

GB Market

Return vs Industry: IHC exceeded the UK Medical Equipment industry which returned -1.5% over the past year.

Return vs Market: IHC exceeded the UK Market which returned -22.4% over the past year.


Shareholder returns

IHCIndustryMarket
7 Day-7.5%2.3%3.9%
30 Day-0.7%-15.6%-16.1%
90 Day1.5%-18.7%-26.1%
1 Year4.6%4.6%0.3%-1.5%-18.2%-22.4%
3 Year20.4%20.4%5.0%0.2%-11.7%-23.1%
5 Yearn/a35.9%24.4%1.9%-21.5%

Price Volatility Vs. Market

How volatile is Inspiration Healthcare Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Inspiration Healthcare Group undervalued compared to its fair value and its price relative to the market?

19.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IHC (£0.68) is trading above our estimate of fair value (£0.13)

Significantly Below Fair Value: IHC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IHC is good value based on its PE Ratio (19.4x) compared to the Medical Equipment industry average (27.2x).

PE vs Market: IHC is poor value based on its PE Ratio (19.4x) compared to the UK market (12.8x).


Price to Earnings Growth Ratio

PEG Ratio: IHC is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: IHC is overvalued based on its PB Ratio (3.5x) compared to the GB Medical Equipment industry average (2.8x).


Next Steps

Future Growth

How is Inspiration Healthcare Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

29.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IHC's forecast earnings growth (29% per year) is above the savings rate (0.5%).

Earnings vs Market: IHC's earnings (29% per year) are forecast to grow faster than the UK market (15.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IHC's revenue (15.1% per year) is forecast to grow faster than the UK market (2.4% per year).

High Growth Revenue: IHC's revenue (15.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if IHC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Inspiration Healthcare Group performed over the past 5 years?

34.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IHC has a high level of non-cash earnings.

Growing Profit Margin: IHC's current net profit margins (6.6%) are lower than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: IHC's earnings have grown significantly by 34% per year over the past 5 years.

Accelerating Growth: IHC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IHC had negative earnings growth (-10.3%) over the past year, making it difficult to compare to the Medical Equipment industry average (-7.4%).


Return on Equity

High ROE: IHC's Return on Equity (17.8%) is considered low.


Next Steps

Financial Health

How is Inspiration Healthcare Group's financial position?


Financial Position Analysis

Short Term Liabilities: IHC's short term assets (£7.0M) exceed its short term liabilities (£2.7M).

Long Term Liabilities: IHC's short term assets (£7.0M) exceed its long term liabilities (£472.0K).


Debt to Equity History and Analysis

Debt Level: IHC is debt free.

Reducing Debt: IHC had no debt 5 years ago.

Debt Coverage: IHC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: IHC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: IHC has a high level of physical assets or inventory.

Debt Coverage by Assets: IHC's debt is covered by short term assets (assets are 1.257765303932E+17x debt).


Next Steps

Dividend

What is Inspiration Healthcare Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate IHC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate IHC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IHC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IHC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IHC's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Neil Campbell (51yo)

17.25s

Tenure

UK£179,000

Compensation

Mr. Neil James Campbell serves as the Chief Executive Officer of Inspiration Healthcare Group plc. In 2003, Mr. Campbell became Chief Executive Officer and Founding Partner of Inspiration Healthcare Ltd. H ...


CEO Compensation Analysis

Compensation vs Market: Neil's total compensation ($USD222.86K) is below average for companies of similar size in the UK market ($USD333.37K).

Compensation vs Earnings: Neil's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Neil Campbell
CEO & Executive Director17.25yrsUK£179.00k11.82% £3.1m
Michael Briant
CFO, Company Secretary & Executive Director3.58yrsUK£152.00k0.089% £23.3k
Toby Foster
Commercial Director & Director4.83yrsUK£151.00k10.16% £2.7m
Nigel Weston
Head of Operationsno datano datano data
John Nash
Head of Marketing2.17yrsno datano data
Wei Yu
Head of R&D2.67yrsno datano data
Simon Travers
Head of Quality Assurance & Regulatory Affairs2.67yrsno datano data
Jonathan Ballard
Group Financial Controller2.67yrsno datano data
William Walls
Finance Directorno dataUK£43.00k4.06% £1.1m

2.7yrs

Average Tenure

51yo

Average Age

Experienced Management: IHC's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Neil Campbell
CEO & Executive Director17.25yrsUK£179.00k11.82% £3.1m
Michael Briant
CFO, Company Secretary & Executive Director3.58yrsUK£152.00k0.089% £23.3k
Toby Foster
Commercial Director & Director4.83yrsUK£151.00k10.16% £2.7m
Mark Abrahams
Non-Executive Chairmanno dataUK£35.00k0.63% £164.0k
William Norman Nolson
Non-Executive Director4.83yrsUK£24.00k0.089% £23.3k
Robert Beveridge
Senior Independent Directorno dataUK£24.00kno data

4.8yrs

Average Tenure

56.5yo

Average Age

Experienced Board: IHC's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Inspiration Healthcare Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Inspiration Healthcare Group plc
  • Ticker: IHC
  • Exchange: AIM
  • Founded: 1998
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: UK£26.099m
  • Shares outstanding: 38.38m
  • Website: https://www.inspiration-healthcare.com

Number of Employees


Location

  • Inspiration Healthcare Group plc
  • Unit 2, Satellite Business Village
  • Fleming Way
  • Crawley
  • West Sussex
  • RH10 9NE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IHCAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJun 2015

Biography

Inspiration Healthcare Group plc, together with its subsidiaries, provides medical devices for use in critical care, operating theatre, and home healthcare applications worldwide. The company offers neonatal intensive care products, such as Unique+ CFM, a wireless electroencephalography monitoring device; a nasal continuous positive airway pressure (nCPAP) device for treating infants, as well as a range of breathing circuits under the Inspire nCPAP name; inspiration air/oxygen blenders; and Tecotherm Neo, a servo control device for total body cooling and warming used in initial stabilization of preterm infants. Its neonatal intensive care products also include positioning products comprising DandlePAL, DandleROO, DandleROO Lite, DandleGel Pillow, and KangaROO Kuddler used to aid the neurodevelopment of infants; LifeStart, a neonatal bedside resuscitation unit; and Inspire rPAP, a 2-piece non-invasive system for the initial stabilization and resuscitation of infants. In addition, the company provides adult intensive care products; and AlphaCore5, a patient warming system for prevention of inadvertent hypothermia. Further, it offers various equipment maintenance packages; and a range of service kits, spare parts, blender exchange/overhaul programs, and repair services. The company was founded in 1998 and is headquartered in Crawley, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 03:35
End of Day Share Price2020/03/31 00:00
Earnings2019/07/31
Annual Earnings2019/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.