GRAHAM HOLDINGS CO-CLASS B (GHC) Stock Fundamental Analysis
USA - NYSE:GHC - US3846371041 - Common Stock
1012.13 USD
-30.53 (-2.93%)
1012.13 USD
0 (0%)
Overall GHC gets a fundamental rating of 6 out of 10. We evaluated GHC against 77 industry peers in the Diversified Consumer Services industry. While GHC has a great health rating, its profitability is only average at the moment. 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.
GHC had positive earnings in each of the past 5 years.
Each year in the past 5 years GHC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GHC (8.89%) is better than 81.82% of its industry peers.
The Return On Equity of GHC (15.56%) is better than 77.92% of its industry peers.
GHC has a Return On Invested Capital of 3.51%. This is comparable to the rest of the industry: GHC outperforms 59.74% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GHC is significantly below the industry average of 9.47%.
The 3 year average ROIC (2.58%) for GHC is below the current ROIC(3.51%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 14.01%, 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.
Looking at the Operating Margin, with a value of 6.16%, GHC is in line with its industry, outperforming 58.44% of the companies in the same industry.
GHC's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 31.09%, 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 | 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.
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
An Altman-Z score of 3.15 indicates that GHC is not in any danger for bankruptcy at the moment.
GHC has a better Altman-Z score (3.15) than 75.32% 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 Debt to FCF ratio of 1.98. This is in the better half of the industry: GHC outperforms 76.62% 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 has a better Debt to Equity ratio (0.08) than 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
A Current Ratio of 1.27 indicates that GHC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.27, GHC perfoms like the industry average, 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's Quick ratio of 1.10 is in line compared 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
GHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.14%, which is quite impressive.
The Earnings Per Share has been growing by 13.67% on average over the past years. This is quite good.
Looking at the last year, GHC shows a quite strong growth in Revenue. The Revenue has grown by 8.52% in the last year.
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)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.
The Revenue is expected to grow by 4.07% on average over the next years.
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 16.16, which indicates a correct valuation of GHC.
Based on the Price/Earnings ratio, GHC is valued a bit cheaper than 75.32% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.10. GHC is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.49, the valuation of GHC can be described as correct.
GHC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GHC is cheaper than 68.83% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.52. GHC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.16 | ||
| Fwd PE | 15.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GHC is valued a bit cheaper than the industry average as 76.62% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GHC is valued cheaper than 87.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.53 | ||
| EV/EBITDA | 7.82 |
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)1.18
EPS Next 2Y1.23%
EPS Next 3Y-1.28%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, 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 84.42% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, 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.
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
GHC pays out 4.53% of its income as dividend. This is a sustainable payout ratio.
DP4.53%
EPS Next 2Y1.23%
EPS Next 3Y-1.28%
1012.13
-30.53 (-2.93%)
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 Cap4.41B
Revenue(TTM)4.79B
Net Income(TTM)677.37M
Analysts42.5
Price Target963.9 (-4.77%)
Short Float %2.54%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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 | 16.16 | ||
| Fwd PE | 15.49 | ||
| P/S | 0.91 | ||
| P/FCF | 10.53 | ||
| P/OCF | 8.92 | ||
| P/B | 1.01 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 7.82 |
EPS(TTM)62.63
EY6.19%
EPS(NY)65.35
Fwd EY6.46%
FCF(TTM)96.11
FCFY9.5%
OCF(TTM)113.46
OCFY11.21%
SpS1108.86
BVpS998.14
TBVpS599.3
PEG (NY)N/A
PEG (5Y)1.18
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 16.16 and the Price/Book (PB) ratio is 1.01.
How financially healthy is GRAHAM HOLDINGS CO-CLASS B?
The financial health rating of GRAHAM HOLDINGS CO-CLASS B (GHC) is 7 / 10.