iHuman (IH) AI Stock Analysis

• Market Cap: $122.27M
• Dividend Yield: 3.62%
• Average Volume (3M): 8.25K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.54
• Revenue Growth: -10.89%
• EPS Growth: -45.97%
• Country: US
• Employees: 723
• Sector: Healthcare
• Sector Strength: 45
• Industry: Education & Training Services
• EPS (TTM): 0.25
• Shares Outstanding: 22,721,579
• 10 Day Avg. Volume: 6,612
• 30 Day Avg. Volume: 8,246
• PEG Ratio: -0.02
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.77
• 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: 75 Outperform
• Price Target: ―

iHuman shows financial stability with strong operational efficiency but faces challenges in revenue and profitability growth. The technical analysis indicates a positive momentum, supporting potential short-term gains. Valuation metrics suggest the stock is undervalued, offering room for appreciation. However, the absence of a dividend yield and weakening cash flow generation are notable concerns.

iHuman Business Overview & Revenue Model

Company Description

iHuman Inc. provides intellectual development products to individual users, kindergartens, and distributors in the People's Republic of China. The company offers interactive and self-directed learning apps, including iHuman Chinese, iHuman ABC, iHuman Pinyin, iHuman Magic Thinking, iHuman Books, iHuman Stories, iHuman Reading, iHumanpedia, iHuman Kids Workout, iHuman Coding, iHuman Fun Idioms, iHuman Little Artists, and iHuman Readers. It also provides intellectually stimulating materials, including books, interactive materials, and smart devices that develop children's abilities in speaking, critical thinking, independent reading, and creativity. The company was founded in 1996 and is based in Beijing, the People's Republic of China.

How the Company Makes Money

iHuman makes money through the sale of its educational apps and subscription services, which parents and educators purchase to provide children with access to its interactive learning content. The company offers a variety of subscription plans that cater to different learning needs and age groups, generating a steady stream of recurring revenue. Additionally, iHuman leverages partnerships with educational institutions and content creators to expand its offerings and reach a broader audience. This strategic approach allows iHuman to enhance its product portfolio and tap into new market segments, contributing to its earnings.

iHuman Financial Statement Overview

Summary

The company presents a mixed financial performance. Strong operational efficiency is evident with healthy gross and EBIT margins, but recent declines in revenue and net profit margins raise concerns about growth. The balance sheet is robust with low leverage, indicating financial stability. Cash flow generation has weakened, posing potential risks for future investments and liquidity. Overall, the company is financially stable but faces challenges in sustaining growth and profitability.

Income Statement

The income statement shows a generally positive trend in profitability metrics. The company achieved a gross profit margin of approximately 69.4% in 2024, indicating efficient cost control relative to revenue. However, the net profit margin has declined from 17.8% in 2023 to 10.7% in 2024, suggesting pressure on bottom-line profitability. Revenue has decreased by 9.4% from 2023 to 2024, which is a concern for growth prospects. Despite these challenges, positive EBIT and EBITDA margins highlight operational efficiency improvements over the years.

Balance Sheet

The balance sheet reflects a strong financial position with a low debt-to-equity ratio of approximately 0.02 in 2024, indicating minimal reliance on debt financing. The equity ratio stands at about 67.7%, showcasing a robust equity base relative to total assets. However, there is a slight decrease in total assets and equity from 2023 to 2024, which may indicate reduced investment or asset turnover. Return on equity has decreased, reflecting reduced profitability.

Cash Flow

Cash flow analysis indicates a decrease in free cash flow from 2023 to 2024, with a growth rate of -69.2%. The operating cash flow to net income ratio is favorable at 0.59 in 2024, suggesting effective conversion of earnings into cash. However, the decline in free cash flow growth highlights potential challenges in cash generation or increased capital expenditures.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
939.96M	922.20M	1.02B	985.52M	944.72M	531.91M
	Gross Profit
661.96M	640.15M	721.27M	691.17M	660.62M	365.44M
	EBIT
78.89M	71.91M	159.89M	111.58M	-54.25M	-44.45M
	EBITDA
78.89M	85.57M	171.58M	122.41M	-47.83M	-41.64M
	Net Income Common Stockholders
105.38M	98.59M	180.91M	109.82M	-37.05M	-37.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.17B	1.17B	1.21B	1.05B	855.36M	861.68M
	Total Assets
1.42B	1.42B	1.45B	1.33B	1.10B	1.05B
	Total Debt
2.42M	14.91M	3.86M	9.02M	34.25M	6.61M
	Net Debt
-649.27M	-1.11B	-1.21B	-1.04B	-821.12M	-855.07M
	Total Liabilities
494.31M	458.80M	492.69M	563.95M	492.51M	404.29M
	Stockholders Equity
926.33M	960.85M	957.80M	769.45M	608.37M	642.65M
Cash Flow		Free Cash Flow
0.00	51.10M	165.61M	1.25B	5.93M	207.08M
	Operating Cash Flow
0.00	58.55M	172.12M	1.29B	38.21M	222.99M
	Investing Cash Flow
0.00	-52.76M	-6.51M	-225.03M	-31.95M	-15.91M
	Financing Cash Flow
0.00	-102.28M	-9.45M	-47.66M	410.00K	571.96M

iHuman Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.35
• 50DMA: Positive
• 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 IH, the sentiment is Positive. The current price of 2.35 is below the 20-day moving average (MA) of 2.35, above the 50-day MA of 2.22, and above the 200-day MA of 1.89, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 52.90 is Neutral, neither overbought nor oversold. The STOCH value of 61.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IH.

iHuman Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IH	75 Outperform	$122.27M	9.30	10.27%	3.62%	-10.89%	-45.97%
ENTA	55 Neutral	$153.48M	―	-74.26%	―	-11.55%	27.32%
Sector *	51 Neutral	$7.32B	0.30	-60.36%	2.39%	17.47%	1.73%
CCCC	51 Neutral	$100.83M	―	-45.55%	―	98.56%	37.97%
AMWL	50 Neutral	$106.71M	―	-44.04%	―	2.79%	58.22%
ALEC	48 Neutral	$146.99M	―	-90.26%	―	-8.37%	9.21%
ELTX	30 Underperform	$128.78M	―	-744.59%	―	―	27.65%