Induction Healthcare Group Plc (INHC) AI Stock Analysis

• Market Cap: $9.33M
• Dividend Yield: N/A
• Average Volume (3M): 26.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.07
• Revenue Growth: 8.09%
• EPS Growth: 70.70%
• Country: UK
• Employees: 74
• Sector: Healthcare
• Sector Strength: 46
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.05
• Shares Outstanding: 95,669,720
• 10 Day Avg. Volume: 11,481
• 30 Day Avg. Volume: 26,712
• PEG Ratio: 0.00
• Price to Book (P/B): -5.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.42
• 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

• Rating: 57 Neutral
• Price Target: ―

Induction Healthcare Group Plc's strong revenue growth is overshadowed by significant profitability and cash flow challenges, making financial performance a critical concern. Technical analysis shows upward momentum, but caution is needed due to overbought indicators. Valuation concerns further reduce the stock's appeal. However, the planned acquisition by VitalHub offers a positive outlook, potentially improving market positioning and operational capabilities.

Induction Healthcare Group Plc Business Overview & Revenue Model

Company Description

Induction Healthcare Group Plc (INHC) is a healthcare technology company that provides innovative solutions to improve the efficiency and accessibility of healthcare services. Operating primarily in the digital healthcare sector, the company offers a range of products and services designed to streamline communication between healthcare professionals and enhance patient care. Their core offerings include digital platforms that facilitate secure messaging, clinical decision support, and patient management systems.

How the Company Makes Money

Induction Healthcare Group Plc generates revenue through a subscription-based model for its software solutions, targeting healthcare providers such as hospitals and clinics. The company charges fees for access to its digital platforms, which include features like secure messaging, patient management tools, and clinical decision support systems. Key revenue streams include subscription fees, licensing agreements, and potentially partnerships with healthcare institutions that seek to integrate these digital solutions into their operations. Additionally, Induction Healthcare may earn income through collaborations with other technology companies to expand its product offerings and reach.

Induction Healthcare Group Plc Financial Statement Overview

Summary

Induction Healthcare Group Plc is experiencing strong revenue growth, but it struggles with profitability and cash flow management. While the balance sheet shows low leverage, persistent net losses and negative cash flows raise concerns about the company's financial health and sustainability in the long term.

Income Statement

The company has demonstrated significant revenue growth over the past few years, increasing from negligible revenue in 2019 to over 13 million in 2024. However, profitability remains a major issue, with persistent negative net income and EBIT figures. The gross profit margin improved in 2024, but negative EBIT and EBITDA margins indicate ongoing challenges in managing operational costs.

Balance Sheet

The company's debt levels are relatively low, which is a positive aspect. However, the return on equity is negative due to consistent net losses, and the equity ratio has declined as total assets have decreased over the years. These factors suggest financial instability and potential risks.

Cash Flow

Operating cash flow has consistently been negative, which is concerning. The company has improved its free cash flow position slightly from 2023 to 2024, but it remains negative. The lack of positive cash flows suggests ongoing liquidity challenges.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	12.78M	13.65M	12.88M	7.23M	1.36M	148.00K
Gross Profit	6.06M	10.70M	3.50M	666.00K	725.00K	75.00K
EBITDA	-780.00K	-165.00K	-12.75M	-5.32M	-6.76M	-3.17M
Net Income	-5.20M	-3.26M	-17.38M	-8.43M	-7.61M	-3.53M
Balance Sheet
Total Assets	27.09M	33.37M	38.34M	55.37M	20.12M	14.88M
Cash, Cash Equivalents and Short-Term Investments	3.13M	3.69M	4.29M	7.50M	2.47M	10.72M
Total Debt	23.00K	57.00K	128.00K	200.00K	0.00	0.00
Total Liabilities	8.90M	12.99M	14.04M	13.11M	3.66M	2.43M
Stockholders Equity	18.19M	20.38M	24.30M	42.26M	16.47M	12.45M
Cash Flow
Free Cash Flow	370.00K	-1.42M	-3.63M	-5.41M	-5.68M	-4.11M
Operating Cash Flow	-239.00K	-1.09M	-2.81M	-2.06M	-4.01M	-3.35M
Investing Cash Flow	24.00K	421.00K	-827.00K	-16.83M	-3.65M	-1.73M
Financing Cash Flow	-64.00K	-63.00K	-70.00K	24.01M	-565.00K	15.62M

Induction Healthcare Group Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:INHC, the sentiment is Positive. The current price of 9.75 is above the 20-day moving average (MA) of 9.60, above the 50-day MA of 9.41, and above the 200-day MA of 8.31, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 82.91 is Negative, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:INHC.

Induction Healthcare Group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXT	76 Outperform	£14.45B	20.13	46.76%	1.21%	11.42%	-7.03%
GHH	71 Outperform	£168.11M	30.88	4.79%	1.20%	1.74%	359.50%
CPI	71 Outperform	£363.15M	4.69	49.03%	―	-10.33%	―
INHC	57 Neutral	$9.33M	―	-16.91%	―	8.09%	70.70%
Sector *	46 Neutral	C$189.62M	-4.26	-8.56%	3.09%	13.57%	-1.98%

Induction Healthcare Group Plc Corporate Events

Induction Healthcare Agrees to Cash Acquisition by VitalHub

Induction Healthcare Group PLC has agreed to a recommended cash acquisition by VitalHub UK Limited, a subsidiary of VitalHub Corp. This acquisition will be executed through a court-sanctioned scheme of arrangement, with significant shareholder support already secured, representing approximately 48.55% of the issued ordinary share capital. This move is expected to impact Induction’s operations by integrating with VitalHub’s resources, potentially enhancing its market positioning and offering benefits to stakeholders.

Spark’s Take on GB:INHC Stock

According to Spark, TipRanks’ AI Analyst, GB:INHC is a Neutral.

Induction Healthcare Group Plc has a strong revenue growth trajectory, but its financial performance is hampered by significant profitability and cash flow challenges. Technical analysis indicates strong upward momentum, but caution is needed due to overbought signals. Valuation is a concern due to negative earnings and lack of dividends, impacting the attractiveness of the stock.

To see Spark’s full report on GB:INHC stock, click here.

Induction Healthcare Agrees to Acquisition by VitalHub

Induction Healthcare Group PLC has agreed to a recommended cash acquisition by VitalHub UK Limited, a subsidiary of VitalHub Corp. This acquisition will be executed through a court-sanctioned scheme of arrangement under the Companies Act 2006. The acquisition involves VitalHub acquiring the entire issued and to-be-issued ordinary share capital of Induction. The announcement includes the dispatch of Rule 15 Letters to participants in the Induction Share Plan, detailing how the acquisition will affect their options and awards. This move is expected to impact Induction’s operations and market positioning, potentially offering new growth opportunities under VitalHub’s ownership.

Spark’s Take on GB:INHC Stock

According to Spark, TipRanks’ AI Analyst, GB:INHC is a Neutral.

Induction Healthcare Group Plc has a strong revenue growth trajectory, but its financial performance is hampered by significant profitability and cash flow challenges. Technical analysis indicates strong upward momentum, but caution is needed due to overbought signals. Valuation is a concern due to negative earnings and lack of dividends, impacting the attractiveness of the stock.

To see Spark’s full report on GB:INHC stock, click here.

Induction Healthcare Announces Change in Voting Rights Structure

Induction Healthcare Group Plc has announced a change in its voting rights structure, with Lombard Odier Asset Management (Europe) Limited now holding 16.94% of the voting rights, a decrease from the previous 17.49%. This adjustment in voting rights reflects a change in the shareholder structure, potentially impacting the company’s governance and decision-making processes.

Spark’s Take on GB:INHC Stock

According to Spark, TipRanks’ AI Analyst, GB:INHC is a Underperform.

The overall stock score is primarily influenced by the company’s strong revenue growth but is heavily weighed down by ongoing profitability, cash flow challenges, and a negative P/E ratio. While there is a positive technical trend, the lack of robust financial health and valuation concerns present significant risks.

To see Spark’s full report on GB:INHC stock, click here.

Induction Healthcare Announces Board Resignation

Induction Healthcare Group PLC announced the resignation of Andy Williams from his role as Non-Executive Director and member of the Audit, Remuneration, and Nomination Committees. This change in the board is significant for the company’s governance structure, potentially impacting its strategic direction and stakeholder relations.

Spark’s Take on GB:INHC Stock

According to Spark, TipRanks’ AI Analyst, GB:INHC is a Underperform.

Induction Healthcare Group Plc shows significant revenue growth but faces severe challenges in profitability and cash flow, reflected in its financial performance score. Technical analysis indicates a strong downward trend with oversold conditions, while valuation metrics suggest the stock is overvalued given the lack of earnings and dividends. These issues collectively contribute to a low overall stock score.

To see Spark’s full report on GB:INHC stock, click here.