MCGRAW HILL INC (MH) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:MH • US5809071039

14.59 USD
-0.16 (-1.08%)
At close: Feb 2, 2026
14.59 USD
0 (0%)
After Hours: 2/2/2026, 8:23:09 PM
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to MH. MH was compared to 76 industry peers in the Diversified Consumer Services industry. MH has a bad profitability rating. Also its financial health evaluation is rather negative. MH has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • MH had negative earnings in the past year.
MH Yearly Net Income VS EBIT VS OCF VS FCFMH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2023 2024 2025 0 200M -200M 400M -400M 600M

1.2 Ratios

  • MH's Return On Assets of -1.72% is in line compared to the rest of the industry. MH outperforms 46.05% of its industry peers.
  • MH has a Return On Equity (-13.09%) which is comparable to the rest of the industry.
  • MH has a Return On Invested Capital of 5.19%. This is in the better half of the industry: MH outperforms 64.47% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for MH is significantly below the industry average of 10.22%.
  • The last Return On Invested Capital (5.19%) for MH is above the 3 year average (3.64%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -1.72%
ROE -13.09%
ROIC 5.19%
ROA(3y)-3.82%
ROA(5y)N/A
ROE(3y)-51.79%
ROE(5y)N/A
ROIC(3y)3.64%
ROIC(5y)N/A
MH Yearly ROA, ROE, ROICMH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2023 2024 2025 0 -20 -40 -60

1.3 Margins

  • MH has a Operating Margin of 14.55%. This is in the better half of the industry: MH outperforms 76.32% of its industry peers.
  • MH has a better Gross Margin (80.61%) than 93.42% of its industry peers.
Industry RankSector Rank
OM 14.55%
PM (TTM) N/A
GM 80.61%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
MH Yearly Profit, Operating, Gross MarginsMH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2023 2024 2025 0 20 -20 40 60

2

2. Health

2.1 Basic Checks

  • MH 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, MH has about the same amount of shares outstanding.
  • Compared to 1 year ago, MH has an improved debt to assets ratio.
MH Yearly Shares OutstandingMH Yearly Shares OutstandingYearly Shares Outstanding 2023 2024 2025 50M 100M 150M
MH Yearly Total Debt VS Total AssetsMH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • MH has an Altman-Z score of 0.57. This is a bad value and indicates that MH is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 0.57, MH is in line with its industry, outperforming 40.79% of the companies in the same industry.
  • A Debt/Equity ratio of 3.54 is on the high side and indicates that MH has dependencies on debt financing.
  • MH has a Debt to Equity ratio of 3.54. This is in the lower half of the industry: MH underperforms 77.63% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.54
Debt/FCF N/A
Altman-Z 0.57
ROIC/WACC0.6
WACC8.72%
MH Yearly LT Debt VS Equity VS FCFMH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2023 2024 2025 1B 2B 3B

2.3 Liquidity

  • MH has a Current Ratio of 1.01. This is a normal value and indicates that MH is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.01, MH perfoms like the industry average, outperforming 44.74% of the companies in the same industry.
  • MH has a Quick Ratio of 1.01. This is a bad value and indicates that MH is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 0.92, MH is in line with its industry, outperforming 40.79% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.01
Quick Ratio 0.92
MH Yearly Current Assets VS Current LiabilitesMH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2023 2024 2025 200M 400M 600M 800M 1B

3

3. Growth

3.1 Past

  • MH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 55.53%, which is quite impressive.
  • Looking at the last year, MH shows a small growth in Revenue. The Revenue has grown by 7.18% in the last year.
EPS 1Y (TTM)55.53%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)7.18%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%N/A

3.2 Future

  • MH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 45.81% yearly.
  • Based on estimates for the next years, MH will show a small growth in Revenue. The Revenue will grow by 3.46% on average per year.
EPS Next Y471.88%
EPS Next 2Y140.53%
EPS Next 3Y83.99%
EPS Next 5Y45.81%
Revenue Next Year0.46%
Revenue Next 2Y3.06%
Revenue Next 3Y3.9%
Revenue Next 5Y3.46%

3.3 Evolution

MH Yearly Revenue VS EstimatesMH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B 1.5B 2B
MH Yearly EPS VS EstimatesMH Yearly EPS VS EstimatesYearly EPS VS Estimates 2026 2027 2028 2029 2030 0.5 1 1.5 2

5

4. Valuation

4.1 Price/Earnings Ratio

  • MH reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
  • A Price/Forward Earnings ratio of 8.58 indicates a reasonable valuation of MH.
  • MH's Price/Forward Earnings ratio is rather cheap when compared to the industry. MH is cheaper than 90.79% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 25.64. MH is valued rather cheaply when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 8.58
MH Price Earnings VS Forward Price EarningsMH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20 -20

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, MH is valued a bit cheaper than 73.68% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 8.5
MH Per share dataMH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 -10 -15

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • MH's earnings are expected to grow with 83.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y140.53%
EPS Next 3Y83.99%

0

5. Dividend

5.1 Amount

  • MH does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

MCGRAW HILL INC / MH FAQ

What is the ChartMill fundamental rating of MCGRAW HILL INC (MH) stock?

ChartMill assigns a fundamental rating of 3 / 10 to MH.


Can you provide the valuation status for MCGRAW HILL INC?

ChartMill assigns a valuation rating of 5 / 10 to MCGRAW HILL INC (MH). This can be considered as Fairly Valued.


Can you provide the profitability details for MCGRAW HILL INC?

MCGRAW HILL INC (MH) has a profitability rating of 3 / 10.


How financially healthy is MCGRAW HILL INC?

The financial health rating of MCGRAW HILL INC (MH) is 2 / 10.


What is the earnings growth outlook for MCGRAW HILL INC?

The Earnings per Share (EPS) of MCGRAW HILL INC (MH) is expected to grow by 471.88% in the next year.