GRAHAM HOLDINGS CO-CLASS B (GHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GHC - US3846371041 - Common Stock
1086.39 USD
-2.04 (-0.19%)
1086.39 USD
0 (0%)
GHC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 77 industry peers in the Diversified Consumer Services industry. GHC has only an average score on both its financial health and profitability. GHC has a correct valuation and a medium growth rate.
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's Return On Assets of 9.27% is fine compared to the rest of the industry. GHC outperforms 79.22% of its industry peers.
Looking at the Return On Equity, with a value of 16.32%, GHC is in the better half of the industry, outperforming 77.92% of the companies in the same industry.
The Return On Invested Capital of GHC (3.30%) is comparable to the rest of the industry.
GHC had an Average Return On Invested Capital over the past 3 years of 2.58%. This 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 (5.82%) which is comparable to the rest of the industry.
GHC's Operating Margin has been stable in the last couple of years.
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
GHC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.13 indicates that GHC is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.13, GHC is doing good in the industry, outperforming 76.62% of the companies in the same industry.
The Debt to FCF ratio of GHC is 2.07, which is a good value as it means it would take GHC, 2.07 years of fcf income to pay off all of its debts.
GHC has a better Debt to FCF ratio (2.07) than 77.92% of its industry peers.
GHC has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
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/WACC0.4
WACC8.23%
2.3 Liquidity
A Current Ratio of 1.32 indicates that GHC should not have too much problems paying its short term obligations.
The Current ratio of GHC (1.32) is comparable to the rest of the industry.
A Quick Ratio of 1.14 indicates that GHC should not have too much problems paying its short term obligations.
The Quick ratio of GHC (1.14) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.14 |
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.
Measured over the past years, GHC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.67% on average per year.
GHC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.34%.
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)-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.
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-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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.35, which indicates a rather expensive current valuation of GHC.
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 26.46, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.97, which indicates a correct valuation of GHC.
67.53% of the companies in the same industry are more expensive than GHC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.10, GHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.35 | ||
| Fwd PE | 15.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GHC is valued a bit cheaper than 74.03% 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 76.62% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.11 | ||
| EV/EBITDA | 7.75 |
4.3 Compensation for Growth
The decent profitability rating of GHC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.27
EPS Next 2Y3.28%
EPS Next 3Y0.79%
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, 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 2.12. GHC pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, GHC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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
4.25% 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%
1086.39
-2.04 (-0.19%)
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 Cap4.74B
Revenue(TTM)4.91B
Net Income(TTM)727.54M
Analysts42.5
Price Target963.9 (-11.27%)
Short Float %2.61%
Short Ratio2.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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)0%
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 | 17.35 | ||
| Fwd PE | 15.97 | ||
| P/S | 0.97 | ||
| P/FCF | 13.11 | ||
| P/OCF | 10.88 | ||
| P/B | 1.06 | ||
| P/tB | 1.79 | ||
| EV/EBITDA | 7.75 |
EPS(TTM)62.63
EY5.76%
EPS(NY)68.02
Fwd EY6.26%
FCF(TTM)82.88
FCFY7.63%
OCF(TTM)99.82
OCFY9.19%
SpS1125.31
BVpS1022.18
TBVpS607.92
PEG (NY)N/A
PEG (5Y)1.27
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
WACC8.23%
ROIC/WACC0.4
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 17.35 and the Price/Book (PB) ratio is 1.06.
How financially healthy is GRAHAM HOLDINGS CO-CLASS B?
The financial health rating of GRAHAM HOLDINGS CO-CLASS B (GHC) is 6 / 10.