Inspiration Healthcare (IHC) AI Stock Analysis

• Market Cap: £11.43M
• Dividend Yield: N/A
• Average Volume (3M): 40.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: 31.78%
• EPS Growth: 10.27%
• Country: UK
• Employees: 224
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): >-0.01
• Shares Outstanding: 89,663,370
• 10 Day Avg. Volume: 75,140
• 30 Day Avg. Volume: 40,346
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.27
• P/FCF Ratio: -2.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: 12.00p ▼(-18.64% Downside)

The score is driven primarily by weak financial performance (worsening losses, reduced equity, higher leverage, and negative cash flows), reinforced by bearish technicals (price below all key moving averages and negative MACD). Valuation offers limited support because the company is loss-making (negative P/E) and no dividend yield is available.

Positive Factors

Niche clinical focus

Specialization in neonatal and critical care creates durable product-market fit: hospitals and NICUs prioritize clinically validated devices, producing steady procurement cycles and higher switching costs. This focused expertise supports long-term demand and differentiated R&D investment.

Recent revenue growth

Reported revenue growth of ~31.8% signals meaningful commercial traction and product adoption. If sustained, that top-line momentum enables scale benefits, deeper distributor relationships and reinvestment in R&D, improving the firm's ability to expand share in a specialized medtech niche.

Recurring revenue streams

Aftermarket services and distributor partnerships create recurring, higher-margin revenue and strengthen customer stickiness. Predictable service income smooths seasonality, supports steady cash conversion over time, and underpins long-term margin stability if operations are managed effectively.

Negative Factors

Weakened equity position

A nearly halved equity base and rising leverage (D/E ~0.9) materially reduce financial flexibility. This elevates refinancing and covenant risk, constrains capital for R&D or capex, and increases the likelihood of equity issuance or costly debt if cash generation does not recover.

Negative operating & free cash flow

Negative operating and free cash flows indicate the business is not self-funding core operations or investments. Persistent cash outflows force reliance on external financing, limit the ability to fund product development and service expansion, and raise short-to-medium term liquidity risk.

Declining profitability margins

Worsening gross margin and rising net losses reflect pressure on pricing, cost structure, or mix. Sustained margin erosion undermines ability to cover fixed costs and invest in growth. Restoring margin or achieving scale is critical for long-term viability and to avoid further capital raises.

Inspiration Healthcare Business Overview & Revenue Model

Company Description

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. In addition, the company provides respiratory disposables and thermo-regulating products for babies. Further, it is involved in the distribution of third party products, including infusion therapy products for parenteral feeding and chemotherapy applications; and provision of technology support services and spare parts. Inspiration Healthcare Group plc was incorporated in 1998 and is headquartered in Crawley, the United Kingdom.

How the Company Makes Money

Inspiration Healthcare generates revenue primarily through the sale of its medical devices and equipment to hospitals, healthcare providers, and distributors. Key revenue streams include direct sales of respiratory support devices, patient monitoring systems, and accessories, as well as ongoing maintenance and servicing contracts. The company also benefits from partnerships with healthcare institutions and distributors that help expand its market reach and enhance product availability. Additionally, IHC may engage in research and development collaborations that can lead to new product innovations, further contributing to its earnings.

Inspiration Healthcare Financial Statement Overview

Summary

Inspiration Healthcare is facing financial difficulties with declining profitability and increasing leverage. The income statement shows challenges in maintaining margins and growth, while the balance sheet indicates rising debt levels and reduced equity. Cash flow issues further exacerbate concerns, with negative free cash flows indicating potential liquidity risks.

Income Statement

Inspiration Healthcare's income statement shows a decline in profitability, with net losses increasing over the past two years. Gross profit margin decreased to 42.82% in 2025 from 47.55% in 2024. Revenue growth has been inconsistent, with a slight increase in 2025 compared to a decrease in 2024. The company is facing significant challenges in maintaining profitability, as evidenced by negative EBIT and EBITDA margins in recent years.

Balance Sheet

The balance sheet reveals a weakening equity position, with stockholders' equity nearly halving from 2024 to 2025. The debt-to-equity ratio increased to 0.90 in 2025, indicating rising leverage. The equity ratio also decreased, showing reduced financial stability. This suggests potential financial risk despite a stable asset base.

Cash Flow

Cash flow analysis indicates deteriorating cash management, with negative operating and free cash flows in 2025. The free cash flow to net income ratio is negative, pointing to challenges in generating cash relative to earnings. The operating cash flow to net income ratio also reflects struggling operations, with significant cash outflows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.20M	38.25M	37.63M	41.23M	41.05M	36.98M
Gross Profit	20.06M	16.38M	17.89M	17.63M	20.25M	17.14M
EBITDA	-9.09M	-12.44M	-2.43M	2.76M	6.17M	4.47M
Net Income	-11.44M	-14.97M	-6.03M	272.00K	4.23M	2.81M
Balance Sheet
Total Assets	36.71M	41.08M	49.01M	54.89M	50.11M	43.23M
Cash, Cash Equivalents and Short-Term Investments	620.00K	733.00K	609.00K	2.28M	9.25M	10.65M
Total Debt	12.91M	14.97M	12.83M	13.08M	7.54M	3.17M
Total Liabilities	20.34M	24.45M	20.05M	19.42M	14.62M	11.66M
Stockholders Equity	16.37M	16.64M	28.97M	35.47M	35.49M	31.58M
Cash Flow
Free Cash Flow	3.05M	-3.52M	380.00K	-11.86M	-436.00K	3.79M
Operating Cash Flow	3.62M	-1.55M	2.01M	-3.52M	3.54M	4.71M
Investing Cash Flow	-2.63M	-1.74M	-2.69M	-8.34M	-3.97M	-14.06M
Financing Cash Flow	-2.88M	3.61M	-1.19M	4.88M	-964.00K	15.53M

Inspiration Healthcare Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IHC, the sentiment is Negative. The current price of 14.75 is below the 20-day moving average (MA) of 15.14, below the 50-day MA of 18.05, and below the 200-day MA of 19.96, indicating a bearish trend. The MACD of -1.29 indicates Positive momentum. The RSI at 22.55 is Positive, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:IHC.

Inspiration Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSTL	77 Outperform	£203.00M	30.53	20.31%	3.48%	10.80%	1.75%
SN	70 Outperform	£10.68B	28.97	9.30%	2.35%	2.51%	56.56%
AMS	69 Neutral	£478.01M	52.00	3.66%	1.25%	68.03%	-18.27%
CTEC	68 Neutral	£4.80B	30.06	12.73%	2.11%	4.18%	37.65%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SUN	43 Neutral	£4.20M	-3.00	-15.46%	―	-4.98%	-114.29%
IHC	42 Neutral	£11.43M	-1.04	-51.63%	―	31.78%	10.27%

Inspiration Healthcare Corporate Events

Inspiration Healthcare Appoints New Auditor

Inspiration Healthcare Group plc has appointed Crowe U.K. LLP as its new independent auditor following a tender process. The change in auditor will take effect from 25 November 2025, with Crowe U.K. set to audit the company’s financial statements for the period ending 31 January 2026. This appointment is subject to shareholder approval at the 2026 Annual General Meeting. The outgoing auditor, BDO LLP, confirmed no issues related to their departure, ensuring a smooth transition for the company.

The most recent analyst rating on (GB:IHC) stock is a Hold with a £19.50 price target. To see the full list of analyst forecasts on Inspiration Healthcare stock, see the GB:IHC Stock Forecast page.