GRAHAM HOLDINGS CO-CLASS B (GHC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GHC - US3846371041 - Common Stock
1087.26 USD
-11.34 (-1.03%)
1087.26 USD
0 (0%)
Overall GHC gets a fundamental rating of 5 out of 10. We evaluated GHC against 76 industry peers in the Diversified Consumer Services industry. GHC has only an average score on both its financial health and profitability. GHC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GHC was profitable.
In the past year GHC had a positive cash flow from operations.
Each year in the past 5 years GHC has been profitable.
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 78.95% of the companies in the same industry.
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.
GHC has a Return On Invested Capital (3.30%) which is comparable to the rest of the 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 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
GHC has a Profit Margin of 14.83%. This is amongst the best in the industry. GHC outperforms 84.21% of its industry peers.
In the last couple of years the Profit Margin of GHC has grown nicely.
GHC has a Operating Margin of 5.82%. This is comparable to the rest of the industry: GHC outperforms 59.21% of its industry peers.
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.
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.
The number of shares outstanding for GHC has been reduced compared to 1 year ago.
Compared to 5 years ago, GHC has less shares outstanding
Compared to 1 year ago, GHC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.13 indicates that GHC is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.13, GHC is in the better half of the industry, outperforming 76.32% 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's Debt to FCF ratio of 2.07 is fine compared to the rest of the industry. GHC outperforms 78.95% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that GHC is not too dependend on debt financing.
GHC's Debt to Equity ratio of 0.07 is fine compared to the rest of the industry. GHC outperforms 64.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 2.07 | ||
| Altman-Z | 3.13 |
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.
Looking at the Current ratio, with a value of 1.32, GHC is in line with its industry, outperforming 56.58% 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.
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
The Earnings Per Share has grown by an impressive 20.14% over the past year.
The Earnings Per Share has been growing by 13.67% on average over the past years. This is quite good.
Looking at the last year, GHC shows a very negative growth in Revenue. The Revenue has decreased by -16.34% in the last year.
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)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
Based on estimates for the next years, GHC will show a small growth in Earnings Per Share. The EPS will grow by 0.79% on average per year.
The Revenue is expected to grow by 4.07% on average over the next years.
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
With a Price/Earnings ratio of 17.36, GHC is valued on the expensive side.
Based on the Price/Earnings ratio, GHC is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
GHC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
GHC is valuated correctly with a Price/Forward Earnings ratio of 15.98.
Based on the Price/Forward Earnings ratio, GHC is valued a bit cheaper than the industry average as 69.74% of the companies are valued more expensively.
GHC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.36 | ||
| Fwd PE | 15.98 |
4.2 Price Multiples
72.37% 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 a bit cheaper when compared to the industry. GHC is cheaper than 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.12 | ||
| EV/EBITDA | 7.73 |
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
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.
Compared to an average S&P500 Dividend Yield of 1.94, 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 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
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%
1087.26
-11.34 (-1.03%)
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 Cap4.74B
Revenue(TTM)4.91B
Net Income(TTM)727.54M
Analysts42.5
Price Target963.9 (-11.35%)
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 | 17.36 | ||
| Fwd PE | 15.98 | ||
| P/S | 0.97 | ||
| P/FCF | 13.12 | ||
| P/OCF | 10.89 | ||
| P/B | 1.06 | ||
| P/tB | 1.79 | ||
| EV/EBITDA | 7.73 |
EPS(TTM)62.63
EY5.76%
EPS(NY)68.02
Fwd EY6.26%
FCF(TTM)82.88
FCFY7.62%
OCF(TTM)99.82
OCFY9.18%
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
WACC8.29%
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.