GRAHAM HOLDINGS CO-CLASS B (GHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GHC - US3846371041 - Common Stock
1106.5 USD
+14.95 (+1.37%)
1106.5 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to GHC. GHC was compared to 77 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
GHC had positive earnings in the past year.
In the past year GHC had a positive cash flow from operations.
In the past 5 years GHC has always been profitable.
In the past 5 years GHC always reported a positive cash flow from operatings.
1.2 Ratios
GHC has a Return On Assets of 9.27%. This is in the better half of the industry: GHC outperforms 79.22% of its industry peers.
GHC has a better Return On Equity (16.32%) than 77.92% of its industry peers.
With a Return On Invested Capital value of 3.30%, GHC perfoms like the industry average, outperforming 57.14% 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 9.42%.
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
Looking at the Profit Margin, with a value of 14.83%, GHC belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Profit Margin of GHC has grown nicely.
GHC has a Operating Margin of 5.82%. This is comparable to the rest of the industry: GHC outperforms 57.14% of its industry peers.
In the last couple of years the Operating Margin of GHC has remained more or less at the same level.
Looking at the Gross Margin, with a value of 30.52%, GHC is doing worse than 66.23% 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
GHC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, GHC has less shares outstanding
Compared to 5 years ago, GHC has less shares outstanding
The debt/assets ratio for GHC has been reduced compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 3.13, GHC is in the better half of the industry, outperforming 76.62% 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.
Looking at the Debt to FCF ratio, with a value of 2.07, GHC is in the better half of the industry, outperforming 77.92% 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 64.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 2.07 | ||
| Altman-Z | 3.13 |
ROIC/WACC0.41
WACC8.13%
2.3 Liquidity
A Current Ratio of 1.32 indicates that GHC should not have too much problems paying its short term obligations.
GHC has a Current ratio (1.32) which is in line with its industry peers.
GHC has a Quick Ratio of 1.14. 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 Quick ratio, with a value of 1.14, GHC is in line with its industry, outperforming 53.25% of the companies in the same industry.
| 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.
GHC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.67% yearly.
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
The Earnings Per Share is expected to grow by 0.79% on average over the next years.
GHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.07% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 17.67, GHC is valued on the expensive side.
Compared to the rest of the industry, the Price/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/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.27, GHC is valued correctly.
Based on the Price/Forward Earnings ratio, GHC is valued a bit cheaper than 67.53% of the companies in the same industry.
GHC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.67 | ||
| Fwd PE | 16.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GHC is valued a bit cheaper than the industry average as 74.03% of the companies are valued more expensively.
77.92% of the companies in the same industry are more expensive than GHC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.35 | ||
| EV/EBITDA | 7.78 |
4.3 Compensation for Growth
GHC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.29
EPS Next 2Y3.28%
EPS Next 3Y0.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, GHC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.13, GHC pays a better dividend. On top of this GHC pays more dividend than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, GHC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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.
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
4.25% of the earnings are spent on dividend by GHC. This is a low number and sustainable payout ratio.
GHC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP4.25%
EPS Next 2Y3.28%
EPS Next 3Y0.79%
1106.5
+14.95 (+1.37%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners84.21%
Inst Owner Change-1.27%
Ins Owners6.63%
Ins Owner Change-1.23%
Market Cap4.82B
Revenue(TTM)4.91B
Net Income(TTM)727.54M
Analysts42.5
Price Target963.9 (-12.89%)
Short Float %2.59%
Short Ratio1.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend6.89
Dividend Growth(5Y)4.28%
DP4.25%
Div Incr Years8
Div Non Decr Years8
Ex-Date
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)20.38%
PT rev (3m)20.38%
EPS NQ rev (1m)-16.8%
EPS NQ rev (3m)-16.8%
EPS NY rev (1m)1.63%
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 | 17.67 | ||
| Fwd PE | 16.27 | ||
| P/S | 0.98 | ||
| P/FCF | 13.35 | ||
| P/OCF | 11.09 | ||
| P/B | 1.08 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 7.78 |
EPS(TTM)62.63
EY5.66%
EPS(NY)68.02
Fwd EY6.15%
FCF(TTM)82.88
FCFY7.49%
OCF(TTM)99.82
OCFY9.02%
SpS1125.31
BVpS1022.18
TBVpS607.92
PEG (NY)N/A
PEG (5Y)1.29
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
WACC8.13%
ROIC/WACC0.41
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 Year14.01%
EBIT Next 3Y10.27%
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
Can you provide the ChartMill fundamental rating for GRAHAM HOLDINGS CO-CLASS B?
ChartMill assigns a fundamental rating of 5 / 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 17.67 and the Price/Book (PB) ratio is 1.08.
How financially healthy is GRAHAM HOLDINGS CO-CLASS B?
The financial health rating of GRAHAM HOLDINGS CO-CLASS B (GHC) is 6 / 10.