iHuman (IH) AI Stock Analysis

• Market Cap: $96.75M
• Dividend Yield: N/A
• Average Volume (3M): 88.18K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.45
• Revenue Growth: -10.54%
• EPS Growth: -43.28%
• Country: US
• Employees: 783
• Sector: Healthcare
• Sector Strength: 69
• Industry: Education & Training Services
• EPS (TTM): 0.25
• Shares Outstanding: 23,216,840
• 10 Day Avg. Volume: 39,929
• 30 Day Avg. Volume: 88,182
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.02
• Price to Cash Flow (P/CF): N/A
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

iHuman demonstrates strong financial performance with significant revenue and profit growth, robust margins, and a solid balance sheet. The technical analysis presents a stable outlook, although upward momentum is limited. The company's valuation appears attractive with a low P/E ratio, suggesting potential undervaluation. These factors collectively result in a favorable stock score of 72, positioning iHuman as a promising investment in the education industry.

iHuman Business Overview & Revenue Model

Company Description

iHuman (IH) is a leading provider of educational technology solutions, specializing in interactive and engaging learning products for children. The company operates within the education sector, offering a range of core products including personalized learning apps, digital courseware, and educational games designed to enhance cognitive development and literacy skills among young learners.

How the Company Makes Money

iHuman (IH) generates revenue primarily through the sale of its digital learning products and subscription-based services. The company earns money by offering its educational apps and games on various platforms, where customers can purchase one-time downloads or opt for recurring subscription plans. Additionally, iHuman benefits from strategic partnerships with educational institutions and content distributors, expanding its reach and customer base. The company may also engage in collaborations with schools and educational organizations to integrate its technology into formal education curricula, providing another stream of income.

iHuman Financial Statement Overview

Summary

iHuman exhibits a strong financial performance with impressive revenue and profit growth, robust margins, and a healthy balance sheet with low leverage. The cash flow situation is positive, though it requires careful management to maintain its growth trend. Overall, the company is well-positioned in the education industry with consistent financial improvements over the years.

Income Statement

iHuman's income statement shows a strong revenue growth of 3.31% from 2022 to 2023, with a healthy Gross Profit Margin of 70.85% and a significant Net Profit Margin of 17.77% in 2023. The company has consistently improved its profitability over the years, transitioning from losses in earlier years to strong net profits. EBIT and EBITDA margins are also solid, indicating effective cost management. Overall, the company demonstrates robust profitability and growth trends.

Balance Sheet

The balance sheet of iHuman reflects a solid financial position with a low Debt-to-Equity Ratio of 0.004 and a high Equity Ratio of 66.04% in 2023. The Return on Equity is a strong 18.89%, highlighting effective utilization of equity capital. The company has shown consistent growth in stockholders' equity, reflecting financial stability. However, there is a need for vigilance on potential risks due to fluctuations in liabilities over the years.

Cash Flow

iHuman's cash flow statement indicates a positive Free Cash Flow Growth Rate of 32.91% from 2022 to 2023, along with a favorable Operating Cash Flow to Net Income ratio of 0.95. The company has improved its cash flow generation capabilities, although there was a significant decline in operating cash flow from 2021 to 2022. Overall, the cash flow position is strong, but monitoring is needed to sustain this trajectory.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
939.96M	1.02B	985.52M	944.72M	531.91M	218.66M
	Gross Profit
661.96M	721.27M	691.17M	660.62M	365.44M	134.49M
	EBIT
78.89M	159.89M	111.58M	-54.25M	-44.45M	-278.81M
	EBITDA
78.89M	171.58M	122.41M	-47.83M	-41.64M	-278.21M
	Net Income Common Stockholders
105.38M	180.91M	109.82M	-37.05M	-37.48M	-275.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
861.68M	1.21B	1.05B	855.36M	861.68M	104.88M
	Total Assets
1.05B	1.45B	1.33B	1.10B	1.05B	168.31M
	Total Debt
6.61M	3.86M	9.02M	34.25M	6.61M	0.00
	Net Debt
-855.07M	-1.21B	-1.04B	-821.12M	-855.07M	-104.88M
	Total Liabilities
404.29M	492.69M	563.95M	492.51M	404.29M	182.76M
	Stockholders Equity
642.65M	957.80M	769.45M	608.37M	642.65M	-14.45M
Cash Flow		Free Cash Flow
0.00	165.61M	1.25B	5.93M	207.08M	40.24M
	Operating Cash Flow
0.00	172.12M	1.29B	38.21M	222.99M	42.63M
	Investing Cash Flow
0.00	-6.51M	-225.03M	-31.95M	-15.91M	-2.39M
	Financing Cash Flow
0.00	-9.45M	-47.66M	410.00K	571.96M	58.52M

iHuman Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IH, the sentiment is Negative. The current price of 1.86 is below the 20-day moving average (MA) of 2.32, below the 50-day MA of 2.12, and above the 200-day MA of 1.81, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 46.15 is Neutral, neither overbought nor oversold. The STOCH value of 9.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IH.

iHuman Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EDU	74 Outperform	$7.17B	18.26	10.40%	―	34.42%	28.54%
IH	72 Outperform	$96.75M	7.36	10.27%	―	-10.54%	-43.28%
TAL	72 Outperform	$5.81B	49.46	3.23%	―	55.62%	―
DAO	54 Neutral	$811.53M	69.86	25.15%	―	3.01%	―
BEDU	48 Neutral	$51.72M	―	-96.68%	―	-15.92%	-164.65%
Sector *	48 Neutral	$6.35B	1.19	-46.26%	2.67%	19.24%	1.75%