GRAHAM HOLDINGS CO-CLASS B (GHC)
US3846371041 - Common Stock
GHC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 65 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
With a decent Return On Assets value of 3.56%, GHC is doing good in the industry, outperforming 75.00% of the companies in the same industry.
GHC's Return On Equity of 6.44% is fine compared to the rest of the industry. GHC outperforms 71.88% of its industry peers.
GHC has a Return On Invested Capital (2.13%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for GHC is significantly below the industry average of 14.93%.
The last Return On Invested Capital (2.13%) for GHC is above the 3 year average (1.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 6.44% | ||
| ROIC | 2.13% |
ROA(3y)2.86%
ROA(5y)3.74%
ROE(3y)4.96%
ROE(5y)6.53%
ROIC(3y)1.83%
ROIC(5y)1.81%
1.3 Margins
With a decent Profit Margin value of 4.70%, GHC is doing good in the industry, outperforming 68.75% of the companies in the same industry.
In the last couple of years the Profit Margin of GHC has declined.
GHC has a Operating Margin (3.61%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of GHC has declined.
GHC has a worse Gross Margin (29.68%) than 73.44% of its industry peers.
In the last couple of years the Gross Margin of GHC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.61% | ||
| PM (TTM) | 4.7% | ||
| GM | 29.68% |
OM growth 3Y-5.49%
OM growth 5Y-16.55%
PM growth 3Y-23.55%
PM growth 5Y-14.31%
GM growth 3Y-4.22%
GM growth 5Y-4.5%
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
GHC has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GHC has a worse debt to assets ratio.
2.2 Solvency
GHC has an Altman-Z score of 2.99. This indicates that GHC is financially healthy and has little risk of bankruptcy at the moment.
GHC has a Altman-Z score of 2.99. This is in the better half of the industry: GHC outperforms 78.13% of its industry peers.
GHC has a debt to FCF ratio of 5.13. This is a neutral value as GHC would need 5.13 years to pay back of all of its debts.
GHC's Debt to FCF ratio of 5.13 is fine compared to the rest of the industry. GHC outperforms 68.75% of its industry peers.
GHC has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
GHC has a Debt to Equity ratio (0.20) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 5.13 | ||
| Altman-Z | 2.99 |
ROIC/WACC0.26
WACC8.29%
2.3 Liquidity
A Current Ratio of 1.50 indicates that GHC should not have too much problems paying its short term obligations.
GHC has a better Current ratio (1.50) than 60.94% of its industry peers.
A Quick Ratio of 1.26 indicates that GHC should not have too much problems paying its short term obligations.
GHC has a Quick ratio (1.26) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
GHC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.94%.
Measured over the past years, GHC shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.56% on average per year.
Looking at the last year, GHC shows a very strong growth in Revenue. The Revenue has grown by 38.78%.
GHC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.37% yearly.
EPS 1Y (TTM)-27.94%
EPS 3Y10.24%
EPS 5Y-2.56%
EPS growth Q2Q-41.81%
Revenue 1Y (TTM)38.78%
Revenue growth 3Y15.18%
Revenue growth 5Y10.37%
Revenue growth Q2Q9.66%
3.2 Future
GHC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.29% yearly.
The Revenue is expected to grow by 5.86% on average over the next years.
EPS Next Y33.58%
EPS Next 2Y5.41%
EPS Next 3Y13.29%
EPS Next 5YN/A
Revenue Next Year10%
Revenue Next 2Y6.05%
Revenue Next 3Y5.86%
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 accelerating.
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 17.15, which indicates a rather expensive current valuation of GHC.
Based on the Price/Earnings ratio, GHC is valued a bit cheaper than 73.44% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.28. GHC is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.84, which indicates a correct valuation of GHC.
Based on the Price/Forward Earnings ratio, GHC is valued cheaper than 82.81% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.88. GHC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.15 | ||
| Fwd PE | 12.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GHC is valued cheaper than 84.38% 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 71.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.63 | ||
| EV/EBITDA | 5.92 |
4.3 Compensation for Growth
GHC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as GHC's earnings are expected to grow with 13.29% in the coming years.
PEG (NY)0.51
PEG (5Y)N/A
EPS Next 2Y5.41%
EPS Next 3Y13.29%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, 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 28.07. GHC pays more dividend than 85.94% of the companies in the same industry.
With a Dividend Yield of 0.95, GHC pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
The dividend of GHC has a limited annual growth rate of 4.76%.
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)4.76%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
12.10% of the earnings are spent on dividend by GHC. This is a low number and sustainable payout ratio.
The dividend of GHC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP12.1%
EPS Next 2Y5.41%
EPS Next 3Y13.29%
GRAHAM HOLDINGS CO-CLASS B
NYSE:GHC (5/3/2024, 7:04:00 PM)
After market: 732.68 0 (0%)732.68
+6.87 (+0.95%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.27B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.15 | ||
| Fwd PE | 12.84 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.51
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 6.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.61% | ||
| PM (TTM) | 4.7% | ||
| GM | 29.68% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-27.94%
EPS 3Y10.24%
EPS 5Y
EPS growth Q2Q
EPS Next Y33.58%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)38.78%
Revenue growth 3Y15.18%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y