GRAHAM HOLDINGS CO-CLASS B (GHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GHC - US3846371041 - Common Stock
1070.36 USD
-9.31 (-0.86%)
Taking everything into account, GHC scores 5 out of 10 in our fundamental rating. GHC was compared to 77 industry peers in the Diversified Consumer Services industry. GHC has an average financial health and profitability rating. 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.
GHC had positive earnings in each of the past 5 years.
In the past 5 years GHC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 9.27%, GHC is in the better half of the industry, outperforming 79.22% of the companies in the same industry.
The Return On Equity of GHC (16.32%) is better than 77.92% of its industry peers.
GHC has a Return On Invested Capital of 3.30%. This is comparable to the rest of the industry: GHC outperforms 57.14% of its industry peers.
GHC had an Average Return On Invested Capital over the past 3 years of 2.58%. This is significantly below the industry average of 9.57%.
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
The Profit Margin of GHC (14.83%) is better than 85.71% of its industry peers.
GHC's Profit Margin has improved in the last couple of years.
GHC's Operating Margin of 5.82% is in line compared to the rest of the industry. GHC outperforms 57.14% of its industry peers.
GHC's Operating Margin has been stable in the last couple of years.
GHC has a worse Gross Margin (30.52%) than 66.23% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GHC is destroying value.
The number of shares outstanding for GHC has been reduced compared to 1 year ago.
The number of shares outstanding for GHC has been reduced compared to 5 years ago.
The debt/assets ratio for GHC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.12 indicates that GHC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.12, 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.
With a decent Debt to FCF ratio value of 2.07, GHC is doing good in the industry, outperforming 77.92% of the companies in the same industry.
GHC has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
GHC's Debt to Equity ratio of 0.07 is fine compared to the rest of the industry. GHC outperforms 64.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 2.07 | ||
| Altman-Z | 3.12 |
ROIC/WACC0.4
WACC8.17%
2.3 Liquidity
GHC has a Current Ratio of 1.32. 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 Current ratio, with a value of 1.32, GHC is in line with its industry, outperforming 58.44% of the companies in the same industry.
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.
GHC has a Quick ratio (1.14) which is in line with its industry peers.
| 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.
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
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.
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
GHC is valuated rather expensively with a Price/Earnings ratio of 17.09.
68.83% of the companies in the same industry are more expensive than GHC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GHC to the average of the S&P500 Index (25.47), we can say GHC is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.74 indicates a correct valuation of GHC.
Based on the Price/Forward Earnings ratio, GHC is valued a bit cheaper than 67.53% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.42, GHC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.09 | ||
| Fwd PE | 15.74 |
4.2 Price Multiples
GHC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GHC is 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 77.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.91 | ||
| EV/EBITDA | 7.66 |
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)1.25
EPS Next 2Y3.28%
EPS Next 3Y0.79%
5. Dividend
5.1 Amount
GHC has a yearly dividend return of 0.69%, which is pretty low.
GHC's Dividend Yield is rather good when compared to the industry average which is at 2.13. GHC pays more dividend than 85.71% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, 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 been paying a dividend for at least 10 years, so it has 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 4.25% of its income as dividend. This is a sustainable payout ratio.
The dividend of GHC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP4.25%
EPS Next 2Y3.28%
EPS Next 3Y0.79%
NYSE:GHC (11/24/2025, 2:53:20 PM)
1070.36
-9.31 (-0.86%)
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 Cap4.67B
Revenue(TTM)4.91B
Net Income(TTM)727.54M
Analysts42.5
Price Target963.9 (-9.95%)
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 | 17.09 | ||
| Fwd PE | 15.74 | ||
| P/S | 0.95 | ||
| P/FCF | 12.91 | ||
| P/OCF | 10.72 | ||
| P/B | 1.05 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 7.66 |
EPS(TTM)62.63
EY5.85%
EPS(NY)68.02
Fwd EY6.36%
FCF(TTM)82.88
FCFY7.74%
OCF(TTM)99.82
OCFY9.33%
SpS1125.31
BVpS1022.18
TBVpS607.92
PEG (NY)N/A
PEG (5Y)1.25
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 | 3.12 |
F-Score6
WACC8.17%
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 17.09 and the Price/Book (PB) ratio is 1.05.
How financially healthy is GRAHAM HOLDINGS CO-CLASS B?
The financial health rating of GRAHAM HOLDINGS CO-CLASS B (GHC) is 6 / 10.