iHuman Inc. (NYSE: IH)

Sector: Consumer Defensive Industry: Education & Training Services CIK: 0001814423
Market Cap 103.78 Mn
P/B 0.75
P/E 6.94
P/S 0.87
ROIC (Qtr) 51.65
Div Yield % 0.00
Rev 1y % (Qtr) -14.05
Total Debt (Qtr) 1.65 Mn
Debt/Equity (Qtr) 0.01
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About

iHuman Inc., a leading provider of tech-powered, intellectual development products in China, has been making waves in the industry since its inception in September 2019. With a commitment to simplifying the child-upbringing experience for parents and transforming intellectual development into an enjoyable journey for children, iHuman has established itself as a significant player in the industry. iHuman's primary business activities revolve around the creation and distribution of interactive and self-directed online apps, offline products, and...

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Investment thesis

Bull case

  • Healthy cash reserves of 72.52M provide 238.37x coverage of short-term debt 304213.48, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 189.81M provides 114.76x coverage of total debt 1.65M, indicating robust asset backing and low credit risk.
  • Tangible assets of 189.81M provide exceptional 5.87x coverage of deferred revenue 32.36M, showing strong service capability backing.
  • Short-term investments of 85.93M provide solid 1.77x coverage of other current liabilities 48.58M, indicating strong liquidity.
  • Long-term investments of 3.70M provide solid 2.74x coverage of long-term debt 1.35M, indicating strategic financial planning.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 31.86M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • High receivables of 9.23M relative to inventory of 2.87M (3.21 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 32.36M, which is 0x, raising concerns about future service delivery capabilities.
  • Operating cash flow of 0 provides minimal 0x coverage of tax expenses of 917837.08, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Long-term investments of 3.70M represent a high 1.82x of fixed assets 2.03M, indicating potential overexposure to financial assets versus operational capabilities.

Timing of Transfer of Good or Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Education & Training Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 EDU New Oriental Education & Technology Group Inc. 9.35 Bn 24.58 1.82 0.78 Bn
2 TAL TAL Education Group 6.18 Bn 22.22 2.20 0.38 Bn
3 GHC Graham Holdings Co 5.47 Bn 12.27 1.91 1.17 Bn
4 LAUR Laureate Education, Inc. 5.20 Bn 25.55 3.29 0.44 Bn
5 LOPE Grand Canyon Education, Inc. 4.62 Bn 21.85 4.23 0.11 Bn
6 LRN Stride, Inc. 3.61 Bn 11.32 1.43 0.56 Bn
7 ATGE Covista Inc. 3.46 Bn 13.66 1.83 0.73 Bn
8 PRDO PERDOCEO EDUCATION Corp 2.84 Bn 42.39 1.73 0.06 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.08 0.71
EV to Cash from Ops. EV/CFO 1.92 6.80
EV to Debt EV to Debt 9.33 11.15
EV to EBIT EV/EBIT 0.97 112.78
EV to EBITDA EV/EBITDA 1.32 6.48
EV to Free Cash Flow [EV/FCF] EV/FCF 2.20 5.57
EV to Market Cap EV to Market Cap 0.15 582,173.64
EV to Revenue EV/Rev 0.13 1.74
Price to Book Value [P/B] P/B 0.75 -3.80
Price to Earnings [P/E] P/E 6.94 -1.70
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 11.73
Dividend Payout Ratio % Dividend Payout Ratio % 0.00 2.21
Dividend per Basic Share Div per Share (Qtr) 0.00 0.25
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 1.69
Interest Coverage Interest Coverage 0.00 53.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -82.12
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -20.77 25.11
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.54
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 1.04 -39.04
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 -34.79
EBIT Growth (1y) % EBIT 1y % (Qtr) -1.13 -40.70
EBT Growth (1y) % EBT 1y % (Qtr) -1.13 -52.53
EPS Growth (1y) % EPS Growth (1y) % 0.00 -29.51
FCF Growth (1y) % FCF Growth (1y) % 0.00 -36.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -12.90 -3.42
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.09 0.63
Cash Payout Ratio Cash Payout Ratio 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 1.38 0.73
Current Ratio Curr Ratio (Qtr) 3.46 1.63
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 3.83
Interest Cover Ratio Interest Cover Ratio 0.00 53.05
Times Interest Earned Times Interest Earned 0.00 53.05
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -30.62
EBIT Margin % EBIT Margin % (Qtr) 94.77 -82.13
EBT Margin % EBT Margin % (Qtr) 13.31 -47.07
Gross Margin % Gross Margin % (Qtr) 67.90 50.48
Net Profit Margin % Net Margin % (Qtr) 12.50 -48.61