One-glance verdict
Undervalued
$15.43 our estimate vs market $1.13
93% below our estimate, below the bear case
Fundamentals snapshot
iHuman Inc.
IH · NYQ · Consumer Defensive · Education & Training Services
Current price
$1.13
52-week range
$1.10 - $2.99
Market cap
$57.76M
Balance sheet
Healthy
2.34x Stretched
Net cash $149.90M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Returns 2.6% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 6/10 years.
- Risk Stock trades 1644.1% above its 5-year average P/E.
- Risk Operating margin compressed from 11.3% to -12.0% over 3 years.
What this company does
iHuman Inc.
iHuman Inc. sells educational apps and smart toys that help children learn things like Chinese, English, and coding. Their money mainly comes from these digital products and devices sold to parents and schools in China. This is important because it shows how they are making money by offering a range of learning tools for kids in a growing market.
How the company got here
iHuman Inc. started in 1996, aiming to help children develop their minds through technology. Over the years, it has grown by creating a variety of digital and physical products designed to teach kids essential skills. The company's journey has been about adapting to new technologies to deliver educational content, evolving from simpler tools to more sophisticated AI-powered learning experiences. This focus on innovation has shaped its offerings and market presence in China.
What it actually does
iHuman Inc. creates and sells educational products for children, primarily in China. These products use technology, including artificial intelligence (AI), to help kids learn everything from languages and math to coding and creativity. Think of them as digital tutors and interactive toys that make learning fun and engaging. They offer a mix of apps, smart devices, and even physical books and materials designed to boost a child's intellectual development.
iHuman Apps
This is the core of iHuman's business, offering a wide range of interactive mobile applications. These apps cover subjects like Chinese language, English, math, coding, and even classic literature, all designed to be self-directed by the child. Users pay to access these digital learning tools, which form a significant part of the company's revenue. These apps are the most visible way iHuman reaches individual users and kindergartens.
Bekids and Other Branded Digital Products
Under brands like Bekids, iHuman offers another suite of digital learning tools focused on areas such as coding, coloring, reading, and puzzles. These products are also app-based and aim to develop specific skills like problem-solving and creativity. They represent a distinct set of offerings within iHuman's digital portfolio, catering to different learning preferences and age groups, and contributing to the company's overall income.
Offline and Smart Devices
Beyond apps, iHuman also develops and sells physical, tech-enabled products. This includes items like the iHuman AI Pal, a plush toy that acts as an AI companion, and a smart learning tablet loaded with bilingual content. These offline products provide a tangible way for children to interact with AI and educational material, offering a different revenue stream and reaching families who prefer hands-on learning tools.
What management is betting on now
iHuman's management is focused on leveraging artificial intelligence to create more advanced and personalized learning experiences for children. They are investing in research and development to enhance their existing tech-powered products and create new ones that foster critical thinking and creativity. The strategy involves integrating AI more deeply into their app and device offerings to provide a competitive edge in the educational technology market.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$7.00M
FY2025 Q4
$6.64M
Revenue
$115.40M
Net income
$13.64M
Diluted EPS
0.05
Operating cash flow
$7.34M
Free cash flow
$6.64M
Fetching…
Sources
Revenue
$126.34M
Net income
$13.51M
Diluted EPS
0.05
Operating cash flow
$8.02M
Free cash flow
$7.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $15.43 vs current price $1.13
Our most-likely fair value is $15.43 a share — about 1,265.5% above today's price of $1.13, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $149.9M - more cash than debt. Interest coverage 2.3x.
Net debt
$-149.90M
Interest coverage
2.34x
iHuman Inc.'s profit covers its interest bill about 2.3 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
IH
BASELINE
iHuman Inc.
Total debt $1.25M Interest coverage 2.34x This is the baseline the peer rows are being compared against.
Total debt $50.72M Interest coverage -194.67x -100% vs IH This peer has almost no interest-payment cushion compared with IH.
Total debt $168.68M Interest coverage -12.60x -100% vs IH This peer has almost no interest-payment cushion compared with IH.
Total debt $619.04M Interest coverage 38.27x +1,536% vs IH Carries about 16.4x more debt cushion than IH.
Total debt $8.76M Interest coverage 1.78x -24% vs IH Carries about 1.3x less debt cushion than IH.
What you should know
The case for and against IH
2 Rewards
3 Risks
Rewards
-
Returns 2.6% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 6/10 years.
Risks
-
Stock trades 1644.1% above its 5-year average P/E.
-
Operating margin compressed from 11.3% to -12.0% over 3 years.
-
Insider ownership is only 0.0% (peer median: 6.7%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
18.83x
Forward P/E
5.95x
P/B
0.46x
P/S
0.08x
EV/EBITDA
886.76x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
66.8%
Operating margin
-12.0%
Net margin
3.1%
ROE
2.6%
ROA
-0.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
2.91x
Quick ratio
2.60x
Total debt
$1.25M
Total cash
$151.15M
Growth
How the business has been compounding
Revenue TTM
$528.03M
Revenue 5Y CAGR
-6.1%
EPS TTM
0.06
EPS 5Y CAGR
-4.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$66.92M
Free CF TTM
$6.64M
FCF margin
1.3%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2026-04-17