GRAHAM HOLDINGS CO-CLASS B (GHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GHC - US3846371041 - Common Stock
1087.26 USD
-11.34 (-1.03%)
1087.26 USD
0 (0%)
Overall GHC gets a fundamental rating of 5 out of 10. We evaluated GHC against 76 industry peers in the Diversified Consumer Services industry. GHC has an average financial health and profitability rating. GHC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
GHC had positive earnings in the past year.
GHC had a positive operating cash flow in the past year.
In the past 5 years GHC has always been profitable.
Each year in the past 5 years GHC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GHC (9.27%) is better than 78.95% of its industry peers.
GHC has a better Return On Equity (16.32%) than 75.00% of its industry peers.
GHC has a Return On Invested Capital (3.30%) which is comparable to the rest of the industry.
GHC had an Average Return On Invested Capital over the past 3 years of 2.58%. This is significantly below the industry average of 10.55%.
The 3 year average ROIC (2.58%) for GHC is below the current ROIC(3.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.27% | ||
| ROE | 16.32% | ||
| ROIC | 3.3% |
ROA(3y)4.41%
ROA(5y)4.52%
ROE(3y)7.94%
ROE(5y)7.94%
ROIC(3y)2.58%
ROIC(5y)2.13%
1.3 Margins
GHC has a Profit Margin of 14.83%. This is amongst the best in the industry. GHC outperforms 84.21% of its industry peers.
In the last couple of years the Profit Margin of GHC has grown nicely.
GHC has a Operating Margin (5.82%) which is comparable to the rest of the industry.
GHC's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 30.52%, GHC is doing worse than 63.16% of the companies in the same industry.
GHC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.82% | ||
| PM (TTM) | 14.83% | ||
| GM | 30.52% |
OM growth 3Y16.95%
OM growth 5Y1.11%
PM growth 3Y11.02%
PM growth 5Y6.2%
GM growth 3Y-3.09%
GM growth 5Y-0.25%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GHC is destroying value.
The number of shares outstanding for GHC has been reduced compared to 1 year ago.
The number of shares outstanding for GHC has been reduced compared to 5 years ago.
GHC has a better debt/assets ratio than last year.
2.2 Solvency
GHC has an Altman-Z score of 3.13. This indicates that GHC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GHC (3.13) is better than 76.32% of its industry peers.
The Debt to FCF ratio of GHC is 2.07, which is a good value as it means it would take GHC, 2.07 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.07, GHC is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
A Debt/Equity ratio of 0.07 indicates that GHC is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.07, GHC is doing good in the industry, outperforming 64.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 2.07 | ||
| Altman-Z | 3.13 |
ROIC/WACC0.4
WACC8.29%
2.3 Liquidity
A Current Ratio of 1.32 indicates that GHC should not have too much problems paying its short term obligations.
The Current ratio of GHC (1.32) is comparable to the rest of the industry.
A Quick Ratio of 1.14 indicates that GHC should not have too much problems paying its short term obligations.
GHC has a Quick ratio of 1.14. This is comparable to the rest of the industry: GHC outperforms 53.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
GHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.14%, which is quite impressive.
GHC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.67% yearly.
GHC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.34%.
Measured over the past years, GHC shows a quite strong growth in Revenue. The Revenue has been growing by 10.32% on average per year.
EPS 1Y (TTM)20.14%
EPS 3Y22.67%
EPS 5Y13.67%
EPS Q2Q%-18.38%
Revenue 1Y (TTM)-16.34%
Revenue growth 3Y14.57%
Revenue growth 5Y10.32%
Sales Q2Q%5.94%
3.2 Future
Based on estimates for the next years, GHC will show a small growth in Earnings Per Share. The EPS will grow by 0.79% on average per year.
Based on estimates for the next years, GHC will show a small growth in Revenue. The Revenue will grow by 4.07% on average per year.
EPS Next Y-25.8%
EPS Next 2Y3.28%
EPS Next 3Y0.79%
EPS Next 5YN/A
Revenue Next Year1.25%
Revenue Next 2Y4.36%
Revenue Next 3Y4.07%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.36 indicates a rather expensive valuation of GHC.
Based on the Price/Earnings ratio, GHC is valued a bit cheaper than 68.42% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, GHC is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.98, GHC is valued correctly.
Based on the Price/Forward Earnings ratio, GHC is valued a bit cheaper than 69.74% of the companies in the same industry.
GHC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.36 | ||
| Fwd PE | 15.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GHC is valued a bit cheaper than 72.37% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GHC is valued a bit cheaper than 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.12 | ||
| EV/EBITDA | 7.73 |
4.3 Compensation for Growth
The decent profitability rating of GHC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.27
EPS Next 2Y3.28%
EPS Next 3Y0.79%
5. Dividend
5.1 Amount
GHC has a yearly dividend return of 0.66%, which is pretty low.
Compared to an average industry Dividend Yield of 0.32, GHC pays a better dividend. On top of this GHC pays more dividend than 85.53% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, GHC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
The dividend of GHC has a limited annual growth rate of 4.28%.
GHC has been paying a dividend for at least 10 years, so it has a reliable track record.
As GHC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)4.28%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
GHC pays out 4.25% of its income as dividend. This is a sustainable payout ratio.
The dividend of GHC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP4.25%
EPS Next 2Y3.28%
EPS Next 3Y0.79%
1087.26
-11.34 (-1.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners83.67%
Inst Owner Change0%
Ins Owners5.27%
Ins Owner Change-1.23%
Market Cap4.74B
Revenue(TTM)4.91B
Net Income(TTM)727.54M
Analysts42.5
Price Target963.9 (-11.35%)
Short Float %2.23%
Short Ratio2.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend6.89
Dividend Growth(5Y)4.28%
DP4.25%
Div Incr Years8
Div Non Decr Years8
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)31.96%
Min EPS beat(2)24.14%
Max EPS beat(2)39.78%
EPS beat(4)4
Avg EPS beat(4)16.77%
Min EPS beat(4)1.07%
Max EPS beat(4)39.78%
EPS beat(8)7
Avg EPS beat(8)16.64%
EPS beat(12)9
Avg EPS beat(12)15.65%
EPS beat(16)13
Avg EPS beat(16)14.37%
Revenue beat(2)2
Avg Revenue beat(2)2.95%
Min Revenue beat(2)2.42%
Max Revenue beat(2)3.47%
Revenue beat(4)2
Avg Revenue beat(4)-0.14%
Min Revenue beat(4)-3.72%
Max Revenue beat(4)3.47%
Revenue beat(8)3
Avg Revenue beat(8)-0.8%
Revenue beat(12)7
Avg Revenue beat(12)0.39%
Revenue beat(16)10
Avg Revenue beat(16)1.14%
PT rev (1m)0%
PT rev (3m)20.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.8%
EPS NY rev (1m)0%
EPS NY rev (3m)1.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.36 | ||
| Fwd PE | 15.98 | ||
| P/S | 0.97 | ||
| P/FCF | 13.12 | ||
| P/OCF | 10.89 | ||
| P/B | 1.06 | ||
| P/tB | 1.79 | ||
| EV/EBITDA | 7.73 |
EPS(TTM)62.63
EY5.76%
EPS(NY)68.02
Fwd EY6.26%
FCF(TTM)82.88
FCFY7.62%
OCF(TTM)99.82
OCFY9.18%
SpS1125.31
BVpS1022.18
TBVpS607.92
PEG (NY)N/A
PEG (5Y)1.27
Graham Number1200.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.27% | ||
| ROE | 16.32% | ||
| ROCE | 4.64% | ||
| ROIC | 3.3% | ||
| ROICexc | 4.09% | ||
| ROICexgc | 6.44% | ||
| OM | 5.82% | ||
| PM (TTM) | 14.83% | ||
| GM | 30.52% | ||
| FCFM | 7.37% |
ROA(3y)4.41%
ROA(5y)4.52%
ROE(3y)7.94%
ROE(5y)7.94%
ROIC(3y)2.58%
ROIC(5y)2.13%
ROICexc(3y)3.05%
ROICexc(5y)2.54%
ROICexgc(3y)4.81%
ROICexgc(5y)4.06%
ROCE(3y)3.62%
ROCE(5y)3%
ROICexgc growth 3Y29.13%
ROICexgc growth 5Y2.01%
ROICexc growth 3Y33.45%
ROICexc growth 5Y5.67%
OM growth 3Y16.95%
OM growth 5Y1.11%
PM growth 3Y11.02%
PM growth 5Y6.2%
GM growth 3Y-3.09%
GM growth 5Y-0.25%
F-Score6
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 2.07 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 53.14% | ||
| Cap/Sales | 1.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 102.5% | ||
| Profit Quality | 49.67% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 3.13 |
F-Score6
WACC8.29%
ROIC/WACC0.4
Cap/Depr(3y)39.68%
Cap/Depr(5y)52.48%
Cap/Sales(3y)1.98%
Cap/Sales(5y)2.69%
Profit Quality(3y)118.63%
Profit Quality(5y)82.91%
High Growth Momentum
Growth
EPS 1Y (TTM)20.14%
EPS 3Y22.67%
EPS 5Y13.67%
EPS Q2Q%-18.38%
EPS Next Y-25.8%
EPS Next 2Y3.28%
EPS Next 3Y0.79%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.34%
Revenue growth 3Y14.57%
Revenue growth 5Y10.32%
Sales Q2Q%5.94%
Revenue Next Year1.25%
Revenue Next 2Y4.36%
Revenue Next 3Y4.07%
Revenue Next 5YN/A
EBIT growth 1Y16.34%
EBIT growth 3Y33.98%
EBIT growth 5Y11.54%
EBIT Next Year31.96%
EBIT Next 3Y16.38%
EBIT Next 5YN/A
FCF growth 1Y144.62%
FCF growth 3Y101.03%
FCF growth 5Y35.22%
OCF growth 1Y85.62%
OCF growth 3Y26.21%
OCF growth 5Y19.76%
GRAHAM HOLDINGS CO-CLASS B / GHC FAQ
What is the ChartMill fundamental rating of GRAHAM HOLDINGS CO-CLASS B (GHC) stock?
ChartMill assigns a fundamental rating of 5 / 10 to GHC.
What is the valuation status for GHC stock?
ChartMill assigns a valuation rating of 5 / 10 to GRAHAM HOLDINGS CO-CLASS B (GHC). This can be considered as Fairly Valued.
How profitable is GRAHAM HOLDINGS CO-CLASS B (GHC) stock?
GRAHAM HOLDINGS CO-CLASS B (GHC) has a profitability rating of 6 / 10.
What is the financial health of GRAHAM HOLDINGS CO-CLASS B (GHC) stock?
The financial health rating of GRAHAM HOLDINGS CO-CLASS B (GHC) is 6 / 10.
What is the expected EPS growth for GRAHAM HOLDINGS CO-CLASS B (GHC) stock?
The Earnings per Share (EPS) of GRAHAM HOLDINGS CO-CLASS B (GHC) is expected to decline by -25.8% in the next year.