Inspiration Healthcare (IHC) AI Stock Analysis

• Market Cap: £19.28M
• Dividend Yield: N/A
• Average Volume (3M): 52.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: 1.65%
• EPS Growth: -102.83%
• Country: UK
• Employees: 224
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): -0.13
• Shares Outstanding: 89,663,370
• 10 Day Avg. Volume: 40,331
• 30 Day Avg. Volume: 52,636
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £19.50
• Price Target Upside: -9.30% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 40 Underperform
• Price Target: 19.50p ▼(-9.30% Downside)

Inspiration Healthcare's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The company's financial health is concerning, with declining profitability, increasing leverage, and negative cash flows. Technical analysis supports a bearish outlook, with the stock trading below key moving averages and indicators pointing to oversold conditions. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield, further weighing down the score.

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 consumables. The company's revenue model is based on direct sales to hospitals and healthcare providers, as well as distribution agreements with medical equipment distributors. Key revenue streams include the sale of respiratory support devices, patient monitoring systems, and associated consumables. Additionally, IHC benefits from recurring revenue through the ongoing sale of consumables required for its devices. Strategic partnerships with healthcare organizations and participation in global medical trade shows further enhance IHC's market presence and contribute to its earnings by expanding its customer base and product reach.

Inspiration Healthcare Financial Statement Overview

Summary

Inspiration Healthcare faces financial difficulties with declining profitability and increasing leverage. The income statement shows challenges in maintaining margins and growth, while the balance sheet reveals rising debt levels and reduced equity. Cash flow issues further exacerbate concerns, highlighting 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	38.25M	37.63M	41.23M	41.05M	36.98M
Gross Profit	16.38M	17.89M	17.63M	20.25M	17.14M
EBITDA	-12.44M	-2.43M	2.76M	6.17M	4.47M
Net Income	-14.97M	-6.03M	272.00K	4.23M	2.81M
Balance Sheet
Total Assets	41.08M	49.01M	54.89M	50.11M	43.23M
Cash, Cash Equivalents and Short-Term Investments	733.00K	609.00K	2.28M	9.25M	10.65M
Total Debt	14.97M	12.83M	13.08M	7.54M	3.17M
Total Liabilities	24.45M	20.05M	19.42M	14.62M	11.66M
Stockholders Equity	16.64M	28.97M	35.47M	35.49M	31.58M
Cash Flow
Free Cash Flow	-3.52M	380.00K	-11.86M	-436.00K	3.79M
Operating Cash Flow	-1.55M	2.01M	-3.52M	3.54M	4.71M
Investing Cash Flow	-1.74M	-2.69M	-8.34M	-3.97M	-14.06M
Financing Cash Flow	3.61M	-1.19M	4.88M	-964.00K	15.53M

Inspiration Healthcare Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 21.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:IHC, the sentiment is Neutral. The current price of 21.5 is below the 20-day moving average (MA) of 22.25, below the 50-day MA of 21.65, and above the 200-day MA of 18.28, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 45.87 is Neutral, neither overbought nor oversold. The STOCH value of 48.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:IHC.

Inspiration Healthcare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUN	60 Neutral	6.53M	-3.33	-22.75%	―	-0.57%	-320.00%
RUA	55 Neutral	6.52M	1,125.00	0.00%	―	87.72%	0.00%
CREO	44 Neutral	50.01M	-2.03	-67.69%	―	0.00%	0.00%
IHC	40 Underperform	£19.28M	―	-65.64%	―	1.65%	-102.83%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Inspiration Healthcare Corporate Events

Inspiration Healthcare Reports Robust Revenue Growth and Financial Recovery

Inspiration Healthcare Group plc reported a 41% increase in revenue to £24.0 million for the six months ended 31 July 2025, surpassing market expectations. This growth is attributed to a favorable product mix and strong sales of capital items, alongside a $6 million humanitarian aid contract. The company’s net debt reduced by £1.6 million, reflecting a strong trading performance and improved working capital. The company’s ‘back-to-basics’ approach has driven financial recovery, with expectations for continued momentum into the second half of the year.

The most recent analyst rating on (GB:IHC) stock is a Hold with a £21.00 price target. To see the full list of analyst forecasts on Inspiration Healthcare stock, see the GB:IHC Stock Forecast page.

Inspiration Healthcare Reports Strategic Reset and Contract Wins

Inspiration Healthcare Group plc announced at its AGM that FY25 marked a strategic reset with a modest revenue growth of 1.7% to £38.3 million, driven by a strong second half and the appointment of a new CEO. The company secured its largest contract to date worth $6 million with a global humanitarian aid group, and completed the first shipment for a Middle East contract, leading to reduced working capital and net debt. With a restructured commercial platform, the company is optimistic about meeting market expectations for FY26.