GRAHAM HOLDINGS CO-CLASS B (GHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GHC - US3846371041 - Common Stock
1112.62 USD
-1.92 (-0.17%)
1112.62 USD
0 (0%)
GHC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 76 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 is not valued too expensively and it also shows a decent 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.
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 (9.27%) is better than 78.95% of its industry peers.
GHC's Return On Equity of 16.32% is fine compared to the rest of the industry. GHC outperforms 75.00% of its industry peers.
With a Return On Invested Capital value of 3.30%, GHC perfoms like the industry average, outperforming 55.26% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GHC is significantly below the industry average of 10.55%.
The last Return On Invested Capital (3.30%) for GHC is above the 3 year average (2.58%), which is a sign of increasing profitability.
| 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 84.21% of its industry peers.
In the last couple of years the Profit Margin of GHC has grown nicely.
With a Operating Margin value of 5.82%, GHC perfoms like the industry average, outperforming 59.21% of the companies in the same industry.
In the last couple of years the Operating Margin of GHC has remained more or less at the same level.
GHC's Gross Margin of 30.52% is on the low side compared to the rest of the industry. GHC is outperformed by 63.16% of its industry peers.
In the last couple of years the Gross Margin of GHC has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GHC is destroying value.
GHC has less shares outstanding than it did 1 year ago.
GHC has less shares outstanding than it did 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 3.15 indicates that GHC is not in any danger for bankruptcy at the moment.
The Altman-Z score of GHC (3.15) is better than 76.32% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 2.07, GHC is in the better half of the industry, outperforming 78.95% 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.
With a decent Debt to Equity ratio value of 0.07, GHC is doing good in the industry, outperforming 64.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 2.07 | ||
| Altman-Z | 3.15 |
ROIC/WACC0.4
WACC8.29%
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.
GHC has a Current ratio of 1.32. This is comparable to the rest of the industry: GHC outperforms 56.58% of its industry peers.
A Quick Ratio of 1.14 indicates that GHC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.14, GHC perfoms like the industry average, outperforming 53.95% of the companies in the same 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.
GHC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.67% yearly.
Looking at the last year, GHC shows a very negative growth in Revenue. The Revenue has decreased by -16.34% 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)-16.34%
Revenue growth 3Y14.57%
Revenue growth 5Y10.32%
Sales Q2Q%5.94%
3.2 Future
GHC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.79% yearly.
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
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
Based on the Price/Earnings ratio of 17.76, the valuation of GHC can be described as rather expensive.
68.42% of the companies in the same industry are more expensive than GHC, based on the Price/Earnings ratio.
GHC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.92.
GHC is valuated correctly with a Price/Forward Earnings ratio of 16.36.
GHC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GHC is cheaper than 71.05% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.57. GHC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.76 | ||
| Fwd PE | 16.36 |
4.2 Price Multiples
GHC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GHC is cheaper than 73.68% of the companies in the same industry.
78.95% of the companies in the same industry are more expensive than GHC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.42 | ||
| EV/EBITDA | 8.01 |
4.3 Compensation for Growth
The decent profitability rating of GHC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.3
EPS Next 2Y3.28%
EPS Next 3Y0.79%
5. Dividend
5.1 Amount
GHC has a yearly dividend return of 0.66%, which is pretty low.
Compared to an average industry Dividend Yield of 0.32, GHC pays a better dividend. On top of this GHC pays more dividend than 85.53% of the companies listed in the same industry.
With a Dividend Yield of 0.66, GHC pays less dividend than the S&P500 average, which is at 1.94.
| 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 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
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%
1112.62
-1.92 (-0.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners83.67%
Inst Owner Change0%
Ins Owners5.27%
Ins Owner Change-1.23%
Market Cap4.85B
Revenue(TTM)4.91B
Net Income(TTM)727.54M
Analysts42.5
Price Target963.9 (-13.37%)
Short Float %2.23%
Short Ratio2.7
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-DateN/A
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)0%
EPS NQ rev (3m)-16.8%
EPS NY rev (1m)0%
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 | 17.76 | ||
| Fwd PE | 16.36 | ||
| P/S | 0.99 | ||
| P/FCF | 13.42 | ||
| P/OCF | 11.15 | ||
| P/B | 1.09 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 8.01 |
EPS(TTM)62.63
EY5.63%
EPS(NY)68.02
Fwd EY6.11%
FCF(TTM)82.88
FCFY7.45%
OCF(TTM)99.82
OCFY8.97%
SpS1125.31
BVpS1022.18
TBVpS607.92
PEG (NY)N/A
PEG (5Y)1.3
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 | 3.15 |
F-Score6
WACC8.29%
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 Year31.96%
EBIT Next 3Y16.38%
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
What is the ChartMill fundamental rating of GRAHAM HOLDINGS CO-CLASS B (GHC) stock?
ChartMill assigns a fundamental rating of 5 / 10 to GHC.
What is the valuation status for GHC stock?
ChartMill assigns a valuation rating of 5 / 10 to GRAHAM HOLDINGS CO-CLASS B (GHC). This can be considered as Fairly Valued.
How profitable is GRAHAM HOLDINGS CO-CLASS B (GHC) stock?
GRAHAM HOLDINGS CO-CLASS B (GHC) has a profitability rating of 6 / 10.
What is the financial health of GRAHAM HOLDINGS CO-CLASS B (GHC) stock?
The financial health rating of GRAHAM HOLDINGS CO-CLASS B (GHC) is 6 / 10.
What is the expected EPS growth for GRAHAM HOLDINGS CO-CLASS B (GHC) stock?
The Earnings per Share (EPS) of GRAHAM HOLDINGS CO-CLASS B (GHC) is expected to decline by -25.8% in the next year.