Inspiration Healthcare Group (AIM:IHC) - Share price, News & Analysis

Q: What is the Fair Price of IHC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

IHC (£0.98) is trading above our estimate of [[fair value]] (£0.14)

IHC fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	4/6
Financial Health	6/6
Dividends	0/6

IHC Stock Overview

Inspiration Healthcare Group plc, together with its subsidiaries, supplies medical technology for critical care, operating theatre, and home healthcare applications worldwide.

Rewards

Price-To-Earnings ratio (18.5x) is below the Medical Equipment industry average (21.2x)

Earnings are forecast to grow 11.5% per year

Earnings grew by 27.6% over the past year

Risk Analysis

Does not have a meaningful market cap (£66M)

Inspiration Healthcare Group Competitors

EKF Diagnostics Holdings

AIM:EKF

UK£150.1m

Totally

AIM:TLY

UK£83.8m

Tristel

AIM:TSTL

UK£159.4m

MD Medical Group Investments

LSE:MDMG

US$52.6m

Price History & Performance

Summary of all time highs, changes and price drops for Inspiration Healthcare Group
Historical stock prices
Current Share Price	UK£0.97
52 Week High	UK£1.48
52 Week Low	UK£0.90
Beta	0.32
1 Month Change	-3.94%
3 Month Change	-10.96%
1 Year Change	-27.51%
3 Year Change	42.34%
5 Year Change	66.67%
Change since IPO	95.00%

Recent News & Updates

Feb 23

I Ran A Stock Scan For Earnings Growth And Inspiration Healthcare Group (LON:IHC) Passed With Ease

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

	IHC	GB Medical Equipment	GB Market
7D	-3.5%	2.0%	1.8%
1Y	-27.5%	-22.5%	-7.3%

Return vs Industry: IHC underperformed the UK Medical Equipment industry which returned -22.5% over the past year.

Return vs Market: IHC underperformed the UK Market which returned -7.3% over the past year.

Price Volatility

Is IHC's price volatile compared to industry and market?
IHC volatility
IHC Average Weekly Movement	4.9%
Medical Equipment Industry Average Movement	5.5%
Market Average Movement	5.5%
10% most volatile stocks in GB Market	10.8%
10% least volatile stocks in GB Market	2.8%

Stable Share Price: IHC is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: IHC's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1998	195	Neil Campbell	https://www.inspiration-healthcare.com

Inspiration Healthcare Group plc, together with its subsidiaries, supplies medical technology for critical care, operating theatre, and home healthcare applications worldwide. The company provides neonatal intensive care products, such as inspiration air/oxygen blenders; Tecotherm Neo, a servo control device for total body cooling and warming to monitor the infant’s temperature for every 2 seconds and making minute changes to the cooling fluid to ensure that the infant’s temperature remains stable; LifeStart, a neonatal bedside resuscitation unit; and Inspire rPAP, a 2-piece non-invasive system for the initial stabilization and resuscitation of infants. It also offers adult intensive care products; AlphaCore5, a patient warming system for the prevention of inadvertent hypothermia; and CosyTherm2, a patient warming system for the management of body temperature in neonates.

Inspiration Healthcare Group Fundamentals Summary

How do Inspiration Healthcare Group's earnings and revenue compare to its market cap?
IHC fundamental statistics
Market Cap	UK£66.43m
Earnings (TTM)	UK£3.59m
Revenue (TTM)	UK£41.05m

18.5x

P/E Ratio

1.6x

P/S Ratio

Is IHC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
IHC income statement (TTM)
Revenue	UK£41.05m
Cost of Revenue	UK£20.46m
Gross Profit	UK£20.59m
Other Expenses	UK£17.00m
Earnings	UK£3.59m

Last Reported Earnings

Jan 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.053
Gross Margin	50.16%
Net Profit Margin	8.75%
Debt/Equity Ratio	0%

How did IHC perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

12%

Payout Ratio

Does IHC pay a reliable dividends?

See IHC dividend history and benchmarks

When do you need to buy IHC by to receive an upcoming dividend?
Inspiration Healthcare Group dividend dates
Ex Dividend Date	Jun 30 2022
Dividend Pay Date	Jul 29 2022
Days until Ex dividend	1 day
Days until Dividend pay date	30 days

Does IHC pay a reliable dividends?

See IHC dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is IHC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IHC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for IHC. This is calculated by dividing IHC's market cap by their current preferred multiple.
What is IHC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£66.43m

IHC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.6x
Enterprise Value/EBITDA	12x
PEG Ratio	1.6x

Price to Earnings Ratio vs Peers

How does IHC's PE Ratio compare to its peers?

IHC PE Ratio vs Peers

The above table shows the PE ratio for IHC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	38.1x
EKF EKF Diagnostics Holdings	9.5x	-9.9%	UK£150.1m
TLY Totally	74.7x	n/a	UK£83.8m
TSTL Tristel	69.7x	41.4%	UK£159.4m
MDMG MD Medical Group Investments	0.5x	n/a	US$52.6m
IHC Inspiration Healthcare Group	18.5x	11.5%	UK£66.4m

Forward PE

Price-To-Earnings vs Peers: IHC is good value based on its Price-To-Earnings Ratio (18.5x) compared to the peer average (38.1x).

Price to Earnings Ratio vs Industry

How does IHC's PE Ratio compare vs other companies in the European Medical Equipment Industry?

Price-To-Earnings vs Industry: IHC is good value based on its Price-To-Earnings Ratio (18.5x) compared to the UK Medical Equipment industry average (21.2x)

Price to Earnings Ratio vs Fair Ratio

What is IHC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IHC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	18.5x
Fair PE Ratio	21.8x

Price-To-Earnings vs Fair Ratio: IHC is good value based on its Price-To-Earnings Ratio (18.5x) compared to the estimated Fair Price-To-Earnings Ratio (21.8x).

Share Price vs Fair Value

What is the Fair Price of IHC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IHC (£0.98) is trading above our estimate of fair value (£0.14)

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

Price to Earnings Growth Ratio

PEG Ratio: IHC is poor value based on its PEG Ratio (1.6x)

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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

11.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: IHC's forecast earnings growth (11.5% per year) is above the savings rate (0.9%).

Earnings vs Market: IHC's earnings (11.5% per year) are forecast to grow faster than the UK market (11% per year).

High Growth Earnings: IHC's earnings are forecast to grow, but not significantly.

Revenue vs Market: IHC's revenue (12.5% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: IHC's revenue (12.5% 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

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Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

40.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IHC has high quality earnings.

Growing Profit Margin: IHC's current net profit margins (8.8%) are higher than last year (7.6%).

Past Earnings Growth Analysis

Earnings Trend: IHC's earnings have grown significantly by 40.7% per year over the past 5 years.

Accelerating Growth: IHC's earnings growth over the past year (27.6%) is below its 5-year average (40.7% per year).

Earnings vs Industry: IHC earnings growth over the past year (27.6%) exceeded the Medical Equipment industry 22.3%.

Return on Equity

High ROE: IHC's Return on Equity (10.3%) is considered low.

Discover strong past performing companies

Financial Health

How is Inspiration Healthcare Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: IHC's short term assets (£25.0M) exceed its short term liabilities (£7.7M).

Long Term Liabilities: IHC's short term assets (£25.0M) exceed its long term liabilities (£8.8M).

Debt to Equity History and Analysis

Debt Level: IHC is debt free.

Reducing Debt: IHC currently has no debt however we can't compare to 5 years ago as we have no data for that period.

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

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.63%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: IHC's dividend (0.63%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.87%).

High Dividend: IHC's dividend (0.63%) is low compared to the top 25% of dividend payers in the UK market (5.16%).

Stability and Growth of Payments

Stable Dividend: IHC is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: IHC is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: IHC is not paying a notable dividend for the UK market.

Cash Payout to Shareholders

Cash Flow Coverage: IHC is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

1.9yrs

Average management tenure

CEO

Neil Campbell (53 yo)

19.42yrs

Tenure

UK£306,000

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 ($USD372.97K) is about average for companies of similar size in the UK market ($USD335.69K).

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

Leadership Team

Experienced Management: IHC's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.

Board Members

Experienced Board: IHC's board of directors are considered experienced (6.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/28 00:00
End of Day Share Price	2022/06/28 00:00
Earnings	2022/01/31
Annual Earnings	2022/01/31