GRAHAM HOLDINGS CO-CLASS B (GHC) Stock Fundamental Analysis
USA - NYSE:GHC - US3846371041 - Common Stock
1042.66 USD
+0.17 (+0.02%)
1042.66 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to GHC. GHC was compared to 77 industry peers in the Diversified Consumer Services industry. GHC has an average financial health and profitability rating. GHC has a correct valuation and a medium 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.
Each year in the past 5 years GHC has been profitable.
In the past 5 years GHC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GHC (8.89%) is better than 81.82% 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 77.92% of the companies in the same industry.
GHC has a Return On Invested Capital (3.51%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for GHC is significantly below the industry average of 9.48%.
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 Profit Margin of 14.01%. This is amongst the best in the industry. GHC outperforms 85.71% of its industry peers.
In the last couple of years the Profit Margin of GHC has grown nicely.
GHC has a Operating Margin (6.16%) which is in line with its industry peers.
In the last couple of years the Operating Margin of GHC has remained more or less at the same level.
GHC has a worse Gross Margin (31.09%) than 66.23% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GHC is destroying value.
Compared to 1 year ago, GHC has less shares outstanding
Compared to 5 years ago, GHC has less shares outstanding
Compared to 1 year ago, GHC has a worse debt to assets ratio.
2.2 Solvency
GHC has an Altman-Z score of 3.15. This indicates that GHC is financially healthy and has little risk of bankruptcy at the moment.
GHC's Altman-Z score of 3.15 is fine compared to the rest of the industry. GHC outperforms 76.62% of its industry peers.
The Debt to FCF ratio of GHC is 1.98, which is an excellent value as it means it would take GHC, only 1.98 years of fcf income to pay off all of its debts.
GHC has a better Debt to FCF ratio (1.98) than 77.92% of its industry peers.
GHC has a Debt/Equity ratio of 0.08. This is a healthy value indicating a solid balance between debt and equity.
GHC's Debt to Equity ratio of 0.08 is fine compared to the rest of the industry. GHC outperforms 66.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 3.15 |
ROIC/WACC0.43
WACC8.19%
2.3 Liquidity
GHC has a Current Ratio of 1.27. 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 1.27, GHC is in line with its industry, outperforming 55.84% of the companies in the same industry.
A Quick Ratio of 1.10 indicates that GHC should not have too much problems paying its short term obligations.
GHC has a Quick ratio of 1.10. This is comparable to the rest of the industry: GHC outperforms 54.55% of 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 20.14% over the past year.
The Earnings Per Share has been growing by 13.67% on average over the past years. This is quite good.
GHC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.52%.
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)20.14%
EPS 3Y22.67%
EPS 5Y13.67%
EPS Q2Q%-18.38%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y14.57%
Revenue growth 5Y10.32%
Sales Q2Q%5.94%
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 4.07% on average per year.
EPS Next Y-26.99%
EPS Next 2Y1.23%
EPS Next 3Y-1.28%
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
The Price/Earnings ratio is 16.65, which indicates a correct valuation of GHC.
Based on the Price/Earnings ratio, GHC is valued a bit cheaper than the industry average as 75.32% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.19, GHC is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.96, GHC is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GHC indicates a somewhat cheap valuation: GHC is cheaper than 68.83% of the companies listed in the same industry.
GHC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.65 | ||
| Fwd PE | 15.96 |
4.2 Price Multiples
GHC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GHC is cheaper than 77.92% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GHC is valued cheaply inside the industry as 88.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.85 | ||
| EV/EBITDA | 7.81 |
4.3 Compensation for Growth
The decent profitability rating of GHC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.22
EPS Next 2Y1.23%
EPS Next 3Y-1.28%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, 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 1.95. GHC pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, GHC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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
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%
1042.66
+0.17 (+0.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners84.21%
Inst Owner Change-0.16%
Ins Owners6.63%
Ins Owner Change-2.38%
Market Cap4.55B
Revenue(TTM)4.79B
Net Income(TTM)677.37M
Analysts42.5
Price Target963.9 (-7.55%)
Short Float %2.54%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)3%
Revenue NQ rev (3m)3%
Revenue NY rev (1m)2.2%
Revenue NY rev (3m)2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.65 | ||
| Fwd PE | 15.96 | ||
| P/S | 0.94 | ||
| P/FCF | 10.85 | ||
| P/OCF | 9.19 | ||
| P/B | 1.04 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 7.81 |
EPS(TTM)62.63
EY6.01%
EPS(NY)65.35
Fwd EY6.27%
FCF(TTM)96.11
FCFY9.22%
OCF(TTM)113.46
OCFY10.88%
SpS1108.86
BVpS998.14
TBVpS599.3
PEG (NY)N/A
PEG (5Y)1.22
Graham Number1185.98
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%
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 Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.98 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 55.02% | ||
| Cap/Sales | 1.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 113.63% | ||
| Profit Quality | 61.86% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 3.15 |
F-Score6
WACC8.19%
ROIC/WACC0.43
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-26.99%
EPS Next 2Y1.23%
EPS Next 3Y-1.28%
EPS Next 5YN/A
Revenue 1Y (TTM)8.52%
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 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%
GRAHAM HOLDINGS CO-CLASS B / GHC FAQ
Can you provide the ChartMill fundamental rating for GRAHAM HOLDINGS CO-CLASS B?
ChartMill assigns a fundamental rating of 6 / 10 to GHC.
Can you provide the valuation status for GRAHAM HOLDINGS CO-CLASS B?
ChartMill assigns a valuation rating of 5 / 10 to GRAHAM HOLDINGS CO-CLASS B (GHC). This can be considered as Fairly Valued.
Can you provide the profitability details for GRAHAM HOLDINGS CO-CLASS B?
GRAHAM HOLDINGS CO-CLASS B (GHC) has a profitability rating of 6 / 10.
What are the PE and PB ratios of GRAHAM HOLDINGS CO-CLASS B (GHC) stock?
The Price/Earnings (PE) ratio for GRAHAM HOLDINGS CO-CLASS B (GHC) is 16.65 and the Price/Book (PB) ratio is 1.04.
How financially healthy is GRAHAM HOLDINGS CO-CLASS B?
The financial health rating of GRAHAM HOLDINGS CO-CLASS B (GHC) is 6 / 10.