Induction Healthcare Group Plc (INHC) AI Stock Analysis

• Market Cap: £8.77M
• Dividend Yield: N/A
• Average Volume (3M): 104.88K
• Price to Earnings (P/E): ―
• Beta (1Y): <0.01
• Revenue Growth: 8.09%
• EPS Growth: 70.70%
• Country: UK
• Employees: 74
• Sector: Healthcare
• Sector Strength: 66
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.05
• Shares Outstanding: 92,298,810
• 10 Day Avg. Volume: 277,095
• 30 Day Avg. Volume: 104,877
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.41
• Price to Cash Flow (P/CF): -1.90
• 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

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.

Induction Healthcare Group Plc Business Overview & Revenue Model

Company Description

Induction Healthcare Group PLC provides software to healthcare professionals in the United Kingdom, Europe, the United States, and internationally. The company offers Induction Switch that allows healthcare professionals to bypass the hospital's switchboard, helping them locate extensions, return bleeps quickly or send instant, and role-based messages in a secure environment; Induction Zesty, a software-as-a-service platform, which allows patients to book and access their appointments, read their clinical letters, store a copy of their clinical records, and provide data to their care teams remotely; and Induction Guidance, a platform to create, edit, and publish their own local guidance and policies. It also provides Induction Outpatient Parenteral Antimicrobial Therapy Management System, a cloud-based solution that allows the management of patients and monitoring of the OPAT patient journey; Induction Booking, an online booking platform for patients, hospital staffs, and care home staffs; Induction HealthStream, a data integration platform that reads and writes patient demographic, appointment, and clinical record data; and Induction Attend Anywhere, which offers video consultations to patients and service users to help hospitals, health systems, and other customers. The company was incorporated in 2019 and is based in London, the United Kingdom.

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, the persistent net losses and negative cash flows raise concerns about the company's financial health and sustainability in the long term. Management needs to address operational efficiencies to move towards profitability.

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	-622.00K	-249.00K
	EBIT
-5.02M	-4.20M	-9.63M	-8.60M	-6.28M	-3.26M
	EBITDA
-780.00K	-165.00K	-12.75M	-5.31M	-6.76M	-3.20M
	Net Income Common Stockholders
-5.20M	-3.26M	-17.38M	-8.43M	-7.61M	-3.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
269.00K	3.69M	4.29M	7.50M	2.47M	10.72M
	Total Assets
619.00K	33.37M	38.34M	55.37M	20.12M	14.88M
	Total Debt
2.50M	57.00K	128.00K	200.00K	0.00	0.00
	Net Debt
2.33M	-3.63M	-4.16M	-6.80M	-872.00K	-671.00K
	Total Liabilities
3.26M	12.99M	14.04M	13.11M	3.66M	2.43M
	Stockholders Equity
-2.64M	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: 9.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 9.5 is above the 20-day moving average (MA) of 7.17, above the 50-day MA of 7.08, and above the 200-day MA of 8.39, indicating a bullish trend. The MACD of 0.76 indicates Negative momentum. The RSI at 80.55 is Negative, neither overbought nor oversold. The STOCH value of 88.89 is Negative, 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	83 Outperform	£14.06B	19.60	46.76%	1.79%	11.42%	-7.03%
CPI	56 Neutral	£220.25M	2.87	49.03%	―	-10.33%	―
GHH	53 Neutral	£96.70M	33.81	2.87%	3.52%	-8.41%	-31.29%
INHC	52 Neutral	£8.77M	―	-16.91%	―	8.09%	70.70%
Sector *	51 Neutral	$5.19B	3.13	-40.94%	2.95%	17.94%	2.00%

Induction Healthcare Group Plc Corporate Events

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.