GRAHAM HOLDINGS CO-CLASS B (GHC) Stock Fundamental Analysis
USA - NYSE:GHC - US3846371041 - Common Stock
1022.24 USD
+7.7 (+0.76%)
We assign a fundamental rating of 6 out of 10 to GHC. GHC was compared to 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year GHC was profitable.
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
GHC has a Return On Assets of 8.89%. This is amongst the best in the industry. GHC outperforms 81.82% of its industry peers.
GHC's Return On Equity of 15.56% is fine compared to the rest of the industry. GHC outperforms 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.
The Average Return On Invested Capital over the past 3 years for GHC is significantly below the industry average of 9.48%.
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.
GHC's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 6.16%, GHC perfoms like the industry average, outperforming 58.44% of the companies in the same industry.
GHC's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 31.09%, GHC is not doing good in the industry: 66.23% of the companies in the same industry are doing better.
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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GHC is destroying value.
Compared to 1 year ago, GHC has less shares outstanding
The number of shares outstanding for GHC has been reduced compared to 5 years ago.
The debt/assets ratio for GHC is higher compared to a year ago.
2.2 Solvency
GHC has an Altman-Z score of 3.13. This indicates that GHC is financially healthy and has little risk of bankruptcy at the moment.
GHC has a Altman-Z score of 3.13. This is in the better half of the industry: GHC outperforms 75.32% of its industry peers.
GHC has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
GHC has a better Debt to FCF ratio (1.98) than 77.92% 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 | 3.13 |
ROIC/WACC0.43
WACC8.13%
2.3 Liquidity
GHC has a Current Ratio of 1.27. 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 1.27, GHC is in line with its industry, outperforming 55.84% of the companies in the same industry.
GHC has a Quick Ratio of 1.10. 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 (1.10) which is comparable to the rest of the industry.
| 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 45.16%, 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.
The Revenue for GHC has decreased by -16.20% in the past year. This is quite bad
Measured over the past years, GHC shows a quite strong growth in Revenue. The Revenue has been growing by 10.32% on average per year.
EPS 1Y (TTM)45.16%
EPS 3Y22.67%
EPS 5Y13.67%
EPS Q2Q%12.83%
Revenue 1Y (TTM)-16.2%
Revenue growth 3Y14.57%
Revenue growth 5Y10.32%
Sales Q2Q%2.57%
3.2 Future
Based on estimates for the next years, GHC will show a decrease in Earnings Per Share. The EPS will decrease by -1.28% on average per year.
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.
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 15.54, which indicates a correct valuation of GHC.
79.22% 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 (26.89), we can say GHC is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.64, GHC is valued correctly.
Based on the Price/Forward Earnings ratio, GHC is valued a bit cheaper than the industry average as 75.32% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GHC to the average of the S&P500 Index (22.99), we can say GHC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.54 | ||
| Fwd PE | 15.64 |
4.2 Price Multiples
81.82% of the companies in the same industry are more expensive than GHC, based on the Enterprise Value to EBITDA ratio.
GHC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GHC is cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.64 | ||
| EV/EBITDA | 7.61 |
4.3 Compensation for Growth
The decent profitability rating of GHC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.14
EPS Next 2Y1.23%
EPS Next 3Y-1.28%
5. Dividend
5.1 Amount
With a yearly dividend of 0.71%, 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 85.71% of the companies in the same industry.
With a Dividend Yield of 0.71, GHC pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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
4.53% of the earnings are spent on dividend by GHC. This is a low number and sustainable payout ratio.
DP4.53%
EPS Next 2Y1.23%
EPS Next 3Y-1.28%
NYSE:GHC (10/24/2025, 8:04:00 PM)
1022.24
+7.7 (+0.76%)
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 Cap4.46B
Revenue(TTM)4.83B
Net Income(TTM)677.37M
Analysts42.5
Price Target800.7 (-21.67%)
Short Float %2.53%
Short Ratio1.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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 | 15.54 | ||
| Fwd PE | 15.64 | ||
| P/S | 0.92 | ||
| P/FCF | 10.64 | ||
| P/OCF | 9.01 | ||
| P/B | 1.02 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 7.61 |
EPS(TTM)65.8
EY6.44%
EPS(NY)65.35
Fwd EY6.39%
FCF(TTM)96.11
FCFY9.4%
OCF(TTM)113.46
OCFY11.1%
SpS1108.86
BVpS998.14
TBVpS599.3
PEG (NY)N/A
PEG (5Y)1.14
Graham Number1215.63
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 | 3.13 |
F-Score6
WACC8.13%
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)45.16%
EPS 3Y22.67%
EPS 5Y13.67%
EPS Q2Q%12.83%
EPS Next Y-26.99%
EPS Next 2Y1.23%
EPS Next 3Y-1.28%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.2%
Revenue growth 3Y14.57%
Revenue growth 5Y10.32%
Sales Q2Q%2.57%
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 6 / 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 15.54 and the Price/Book (PB) ratio is 1.02.
How financially healthy is GRAHAM HOLDINGS CO-CLASS B?
The financial health rating of GRAHAM HOLDINGS CO-CLASS B (GHC) is 6 / 10.