GRAHAM HOLDINGS CO-CLASS B (GHC) Stock Fundamental Analysis
USA - NYSE:GHC - US3846371041 - Common Stock
1139.51 USD
-20.41 (-1.76%)
1139.51 USD
0 (0%)
Taking everything into account, GHC scores 5 out of 10 in our fundamental rating. GHC was compared to 74 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 has a correct valuation and a medium 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.
GHC had positive earnings in each of the past 5 years.
In the past 5 years GHC always reported a positive cash flow from operatings.
1.2 Ratios
GHC has a Return On Assets of 8.89%. This is amongst the best in the industry. GHC outperforms 81.08% of its industry peers.
Looking at the Return On Equity, with a value of 15.56%, GHC is in the better half of the industry, outperforming 77.03% of the companies in the same industry.
GHC has a Return On Invested Capital (3.51%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GHC is significantly below the industry average of 9.88%.
The last Return On Invested Capital (3.51%) for GHC is above the 3 year average (2.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.89% | ||
| ROE | 15.56% | ||
| ROIC | 3.51% |
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 better Profit Margin (14.01%) than 83.78% of its industry peers.
In the last couple of years the Profit Margin of GHC has grown nicely.
GHC's Operating Margin of 6.16% is in line compared to the rest of the industry. GHC outperforms 59.46% of its industry peers.
In the last couple of years the Operating Margin of GHC has remained more or less at the same level.
The Gross Margin of GHC (31.09%) is worse than 66.22% 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 | 6.16% | ||
| PM (TTM) | 14.01% | ||
| GM | 31.09% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
The debt/assets ratio for GHC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.24 indicates that GHC is not in any danger for bankruptcy at the moment.
The Altman-Z score of GHC (3.24) is better than 75.68% of its industry peers.
GHC has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.98, GHC is doing good in the industry, outperforming 78.38% of the companies in the same industry.
GHC has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
GHC has a Debt to Equity ratio of 0.08. This is in the better half of the industry: GHC outperforms 64.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 3.24 |
ROIC/WACC0.43
WACC8.21%
2.3 Liquidity
A Current Ratio of 1.27 indicates that GHC should not have too much problems paying its short term obligations.
GHC has a Current ratio (1.27) which is comparable to the rest of the industry.
GHC has a Quick Ratio of 1.10. This is a normal value and indicates that GHC is financially healthy and should not expect problems in meeting its short term obligations.
GHC has a Quick ratio (1.10) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.16% 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 -16.20% in the past year. This is quite bad
GHC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.32% yearly.
EPS 1Y (TTM)45.16%
EPS 3Y22.67%
EPS 5Y13.67%
EPS Q2Q%12.83%
Revenue 1Y (TTM)-16.2%
Revenue growth 3Y14.57%
Revenue growth 5Y10.32%
Sales Q2Q%2.57%
3.2 Future
GHC is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.28% yearly.
Based on estimates for the next years, GHC will show a small growth in Revenue. The Revenue will grow by 2.87% on average per year.
EPS Next Y-26.99%
EPS Next 2Y1.23%
EPS Next 3Y-1.28%
EPS Next 5YN/A
Revenue Next Year-0.93%
Revenue Next 2Y2.67%
Revenue Next 3Y2.87%
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
GHC is valuated rather expensively with a Price/Earnings ratio of 17.32.
Based on the Price/Earnings ratio, GHC is valued a bit cheaper than the industry average as 72.97% of the companies are valued more expensively.
GHC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.20.
Based on the Price/Forward Earnings ratio of 17.44, the valuation of GHC can be described as rather expensive.
70.27% of the companies in the same industry are more expensive than GHC, based on the Price/Forward Earnings ratio.
GHC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.32 | ||
| Fwd PE | 17.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GHC is valued cheaply inside the industry as 85.14% of the companies are valued more expensively.
GHC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GHC is cheaper than 86.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.86 | ||
| EV/EBITDA | 7.42 |
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 2Y1.23%
EPS Next 3Y-1.28%
5. Dividend
5.1 Amount
With a yearly dividend of 0.61%, GHC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.04, GHC pays a better dividend. On top of this GHC pays more dividend than 83.78% of the companies listed in the same industry.
With a Dividend Yield of 0.61, GHC pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
The dividend of GHC has a limited annual growth rate of 4.28%.
GHC has paid a dividend for at least 10 years, which is 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
4.53% of the earnings are spent on dividend by GHC. This is a low number and sustainable payout ratio.
DP4.53%
EPS Next 2Y1.23%
EPS Next 3Y-1.28%
1139.51
-20.41 (-1.76%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners81.78%
Inst Owner Change2.69%
Ins Owners6.6%
Ins Owner Change0.94%
Market Cap4.97B
Analysts42.5
Price Target800.7 (-29.73%)
Short Float %2.25%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend6.89
Dividend Growth(5Y)4.28%
DP4.53%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.93%
Min EPS beat(2)2.08%
Max EPS beat(2)39.78%
EPS beat(4)4
Avg EPS beat(4)13.62%
Min EPS beat(4)1.07%
Max EPS beat(4)39.78%
EPS beat(8)7
Avg EPS beat(8)17.5%
EPS beat(12)9
Avg EPS beat(12)14.81%
EPS beat(16)12
Avg EPS beat(16)11.96%
Revenue beat(2)1
Avg Revenue beat(2)-0.65%
Min Revenue beat(2)-3.72%
Max Revenue beat(2)2.42%
Revenue beat(4)1
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-3.72%
Max Revenue beat(4)2.42%
Revenue beat(8)3
Avg Revenue beat(8)-1.01%
Revenue beat(12)7
Avg Revenue beat(12)0.65%
Revenue beat(16)9
Avg Revenue beat(16)0.67%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.45%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.32 | ||
| Fwd PE | 17.44 | ||
| P/S | 1.03 | ||
| P/FCF | 11.86 | ||
| P/OCF | 10.04 | ||
| P/B | 1.14 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 7.42 |
EPS(TTM)65.8
EY5.77%
EPS(NY)65.35
Fwd EY5.73%
FCF(TTM)96.11
FCFY8.43%
OCF(TTM)113.46
OCFY9.96%
SpS1108.86
BVpS998.14
TBVpS599.3
PEG (NY)N/A
PEG (5Y)1.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.89% | ||
| ROE | 15.56% | ||
| ROCE | 4.93% | ||
| ROIC | 3.51% | ||
| ROICexc | 4.27% | ||
| ROICexgc | 6.57% | ||
| OM | 6.16% | ||
| PM (TTM) | 14.01% | ||
| GM | 31.09% | ||
| FCFM | 8.67% |
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%
ROICexcg growth 3Y29.13%
ROICexcg 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 Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.98 | ||
| Debt/EBITDA | 0.62 | ||
| Cap/Depr | 32.97% | ||
| Cap/Sales | 1.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.81% | ||
| Profit Quality | 61.86% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 3.24 |
F-Score6
WACC8.21%
ROIC/WACC0.43
Cap/Depr(3y)30.32%
Cap/Depr(5y)46.86%
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)45.16%
EPS 3Y22.67%
EPS 5Y13.67%
EPS Q2Q%12.83%
EPS Next Y-26.99%
EPS Next 2Y1.23%
EPS Next 3Y-1.28%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.2%
Revenue growth 3Y14.57%
Revenue growth 5Y10.32%
Sales Q2Q%2.57%
Revenue Next Year-0.93%
Revenue Next 2Y2.67%
Revenue Next 3Y2.87%
Revenue Next 5YN/A
EBIT growth 1Y45.26%
EBIT growth 3Y33.98%
EBIT growth 5Y11.54%
EBIT Next Year14.01%
EBIT Next 3Y10.27%
EBIT Next 5YN/A
FCF growth 1Y291.65%
FCF growth 3Y101.03%
FCF growth 5Y35.22%
OCF growth 1Y149.3%
OCF growth 3Y26.21%
OCF growth 5Y19.76%