GRAHAM HOLDINGS CO-CLASS B (GHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GHC - US3846371041 - Common Stock
1155.49 USD
+4.06 (+0.35%)
1152 USD
-3.49 (-0.3%)
Overall GHC gets a fundamental rating of 5 out of 10. We evaluated GHC against 76 industry peers in the Diversified Consumer Services industry. Both the profitability and the financial health of GHC get a neutral evaluation. Nothing too spectacular is happening here. GHC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year GHC was profitable.
- In the past year GHC had a positive cash flow from operations.
- Each year in the past 5 years GHC has been profitable.
- GHC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- GHC has a Return On Assets of 9.27%. This is in the better half of the industry: GHC outperforms 78.95% of its industry peers.
- GHC has a Return On Equity of 16.32%. This is in the better half of the industry: GHC outperforms 75.00% of its industry peers.
- With a Return On Invested Capital value of 3.30%, GHC perfoms like the industry average, outperforming 55.26% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for GHC is significantly below the industry average of 10.30%.
- 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's Profit Margin of 14.83% is amongst the best of 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's Operating Margin of 5.82% is in line compared to the rest of the industry. GHC outperforms 59.21% of its industry peers.
- GHC's Operating Margin has been stable in the last couple of years.
- GHC has a Gross Margin of 30.52%. This is in the lower half of the industry: GHC underperforms 63.16% of its industry peers.
- In the last couple of years the Gross Margin of GHC has remained more or less at the same level.
| 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.
- GHC has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, GHC has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.18 indicates that GHC is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.18, GHC is in the better half of the industry, outperforming 77.63% of the companies in the same industry.
- GHC has a debt to FCF ratio of 2.07. This is a good value and a sign of high solvency as GHC would need 2.07 years to pay back of all of its debts.
- GHC has a Debt to FCF ratio of 2.07. This is in the better half of the industry: GHC outperforms 78.95% of its industry peers.
- A Debt/Equity ratio of 0.07 indicates that GHC is not too dependend on debt financing.
- The Debt to Equity ratio of GHC (0.07) is better than 64.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 2.07 | ||
| Altman-Z | 3.18 |
ROIC/WACC0.4
WACC8.31%
2.3 Liquidity
- GHC has a Current Ratio of 1.32. This is a normal value and indicates that GHC is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.32, GHC is in line with its industry, outperforming 56.58% of the companies in the same 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
- The Earnings Per Share has grown by an impressive 20.14% over the past year.
- Measured over the past years, GHC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.67% on average per year.
- The Revenue for GHC has decreased by -16.34% in the past year. This is quite bad
- The Revenue has been growing by 10.32% on average over the past years. This is quite good.
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.
- The Revenue is expected to grow by 4.07% on average over the next years.
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
- With a Price/Earnings ratio of 18.45, GHC is valued on the expensive side.
- GHC's Price/Earnings ratio is a bit cheaper when compared to the industry. GHC is cheaper than 65.79% of the companies in the same industry.
- GHC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
- The Price/Forward Earnings ratio is 16.99, which indicates a correct valuation of GHC.
- GHC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GHC is 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 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.45 | ||
| Fwd PE | 16.99 |
4.2 Price Multiples
- GHC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GHC is 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 the industry average as 76.32% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.94 | ||
| EV/EBITDA | 8.43 |
4.3 Compensation for Growth
- The decent profitability rating of GHC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.35
EPS Next 2Y3.28%
EPS Next 3Y0.79%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.63%, GHC is not a good candidate for dividend investing.
- GHC's Dividend Yield is rather good when compared to the industry average which is at 0.31. GHC pays more dividend than 85.53% of the companies in the same industry.
- With a Dividend Yield of 0.63, GHC pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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.
- GHC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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%
1155.49
+4.06 (+0.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)02-24 2026-02-24/amc
Inst Owners83.67%
Inst Owner Change-0.03%
Ins Owners5.27%
Ins Owner Change-1.21%
Market Cap5.04B
Revenue(TTM)4.91B
Net Income(TTM)727.54M
Analysts42.5
Price Target963.9 (-16.58%)
Short Float %2.23%
Short Ratio2.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
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 | 18.45 | ||
| Fwd PE | 16.99 | ||
| P/S | 1.03 | ||
| P/FCF | 13.94 | ||
| P/OCF | 11.58 | ||
| P/B | 1.13 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 8.43 |
EPS(TTM)62.63
EY5.42%
EPS(NY)68.02
Fwd EY5.89%
FCF(TTM)82.88
FCFY7.17%
OCF(TTM)99.82
OCFY8.64%
SpS1125.31
BVpS1022.18
TBVpS607.92
PEG (NY)N/A
PEG (5Y)1.35
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 | 3.18 |
F-Score6
WACC8.31%
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.