Inspiration Healthcare (IHC) AI Stock Analysis

• Market Cap: £13.45M
• Dividend Yield: N/A
• Average Volume (3M): 40.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: 18.50p ▲(23.33% Upside)

Inspiration Healthcare's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. The negative P/E ratio and lack of dividend yield further weigh down the valuation. Despite positive corporate events indicating potential future growth, the current financial and technical challenges are significant.

Positive Factors

Revenue Growth

Despite challenges, the company managed a slight revenue increase in 2025, indicating potential for market recovery and product demand resilience.

Recurring Revenue Model

The recurring revenue model from consumables provides a stable income stream, supporting long-term financial stability and customer retention.

Industry Focus

Focusing on critical care and neonatal sectors positions the company in a niche market with high demand for specialized medical devices.

Negative Factors

Declining Profitability

Increasing net losses indicate challenges in cost management and pricing power, potentially affecting long-term sustainability and investment capacity.

Rising Debt Levels

Higher leverage can strain financial flexibility, increasing risk during economic downturns and limiting growth opportunities.

Negative Cash Flows

Negative cash flows highlight operational inefficiencies and liquidity risks, potentially impacting the company's ability to invest in growth and innovation.

Inspiration Healthcare Business Overview & Revenue Model

Company Description

Inspiration Healthcare (IHC) is a medical technology company specializing in innovative products and services for the healthcare sector, particularly focused on neonatal and critical care. The company operates in sectors such as medical devices, healthcare technology, and patient monitoring solutions. IHC's core products include respiratory support devices, patient monitoring systems, and a range of other medical equipment designed to improve patient outcomes and support healthcare professionals in delivering high-quality care.

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: 15.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 15 is below the 20-day moving average (MA) of 17.67, below the 50-day MA of 19.19, and below the 200-day MA of 20.07, indicating a bearish trend. The MACD of -1.33 indicates Positive momentum. The RSI at 11.55 is Positive, neither overbought nor oversold. The STOCH value of 0.78 is Positive, 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
RUA	62 Neutral	£7.60M	1,275.00	0.08%	―	87.72%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CREO	49 Neutral	£41.87M	-1.70	―	―	―	―
SUN	43 Neutral	£4.20M	-3.00	-15.46%	―	-4.98%	-114.29%
IHC	40 Underperform	£13.45M	-1.18	-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.

Inspiration Healthcare Reports Strong H1 FY26 Results, Eyes Sustainable Growth

Inspiration Healthcare Group plc reported a robust performance for the first half of FY26, with a 41% increase in group revenue to £24.0 million, driven by significant neonatal product sales and large export contracts with the Middle East and UNICEF. The company achieved a gross profit of £11.1 million and improved its gross margin to 46.2%, reflecting a strong operating performance and strategic initiatives. The ‘back to basics’ strategy has led to improved margins, lower working capital, and reduced net debt, positioning the company for sustainable growth. Operationally, the company is advancing its US market entry for the SLE6000 ventilator and has strengthened its international distribution, particularly in the Asia-Pacific region. These efforts are expected to support continued profitable growth in the second half of the fiscal year and beyond.

Inspiration Healthcare Reports Strong H1 FY26 Results with 41% Revenue Growth

Inspiration Healthcare Group plc reported a strong performance for the first half of FY26, with a 41% increase in revenue to £24.0 million, driven by significant export contracts and growth in neonatal product sales. The company achieved a gross profit of £11.1 million and improved its gross margin to 46.2%, reflecting operational improvements and strategic market initiatives. The ‘back to basics’ strategy has led to enhanced margins, reduced working capital, and lower net debt, positioning the company for sustainable growth. The company is also advancing its US market entry for the SLE6000 ventilator, aiming for a launch in H1 2027.

Inspiration Healthcare to Host Analyst and Investor Presentations

Inspiration Healthcare Group PLC announced it will host presentations for analysts and investors on 7 October 2025, following the release of its interim results for the six months ended 31 July 2025. The presentations, led by CEO Raffi Stepanian and CFO Alan Olby, aim to provide insights into the company’s performance and future outlook, potentially impacting its industry positioning and stakeholder engagement.

Inspiration Healthcare Announces Board Changes with Liz Shanahan’s Retirement

Inspiration Healthcare Group plc announced that Liz Shanahan, a Non-Executive Director, will retire from the Board on November 20, 2025. The company has decided not to replace her position immediately but will keep the board composition under review, with Richard Jones taking over as Chair of the Remuneration Committee. This change reflects the company’s ongoing efforts to optimize its board structure and governance, potentially impacting its strategic direction and stakeholder engagement.