GRAHAM HOLDINGS CO-CLASS B (GHC) Stock Fundamental Analysis
USA - NYSE:GHC - US3846371041 - Common Stock
1071.5 USD
+5.15 (+0.48%)
1070 USD
-1.5 (-0.14%)
We assign a fundamental rating of 5 out of 10 to GHC. GHC was compared to 79 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.
In the past year GHC had a positive cash flow from operations.
GHC had positive earnings in each of the past 5 years.
GHC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GHC has a better Return On Assets (9.27%) than 78.48% of its industry peers.
GHC has a Return On Equity of 16.32%. This is in the better half of the industry: GHC outperforms 77.22% of its industry peers.
GHC has a Return On Invested Capital (3.30%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for GHC is significantly below the industry average of 10.04%.
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 86.08% 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 of 5.82%. This is comparable to the rest of the industry: GHC outperforms 56.96% 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 has a Gross Margin of 30.52%. This is in the lower half of the industry: GHC underperforms 65.82% 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.
Compared to 1 year ago, GHC has less shares outstanding
Compared to 5 years ago, GHC has less shares outstanding
The debt/assets ratio for GHC has been reduced compared to a year ago.
2.2 Solvency
GHC has an Altman-Z score of 3.11. This indicates that GHC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GHC (3.11) is better than 74.68% 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.
The Debt to FCF ratio of GHC (2.07) is better than 77.22% of its industry peers.
A Debt/Equity ratio of 0.07 indicates that GHC is not too dependend on debt financing.
The Debt to Equity ratio of GHC (0.07) is better than 64.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 2.07 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.38
WACC8.58%
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.
The Current ratio of GHC (1.32) is comparable to the rest of the 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 of 1.14. This is comparable to the rest of the industry: GHC outperforms 51.90% of 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.
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%.
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
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.
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 17.11, the valuation of GHC can be described as rather expensive.
Based on the Price/Earnings ratio, GHC is valued a bit cheaper than the industry average as 67.09% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of GHC to the average of the S&P500 Index (25.89), we can say GHC is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.75, GHC is valued correctly.
Based on the Price/Forward Earnings ratio, GHC is valued a bit cheaper than the industry average as 69.62% of the companies are valued more expensively.
GHC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.11 | ||
| Fwd PE | 15.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GHC is valued a bit cheaper than the industry average as 75.95% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GHC is valued a bit cheaper than 77.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.93 | ||
| EV/EBITDA | 7.57 |
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
With a yearly dividend of 0.68%, 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 2.04. GHC pays more dividend than 86.08% of the companies in the same industry.
With a Dividend Yield of 0.68, GHC pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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%
1071.5
+5.15 (+0.48%)
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-1.39%
Market Cap4.67B
Revenue(TTM)4.91B
Net Income(TTM)727.54M
Analysts42.5
Price Target963.9 (-10.04%)
Short Float %2.54%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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)2.4%
Revenue NQ rev (3m)2.4%
Revenue NY rev (1m)2.2%
Revenue NY rev (3m)2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.11 | ||
| Fwd PE | 15.75 | ||
| P/S | 0.95 | ||
| P/FCF | 12.93 | ||
| P/OCF | 10.73 | ||
| P/B | 1.05 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 7.57 |
EPS(TTM)62.63
EY5.85%
EPS(NY)68.02
Fwd EY6.35%
FCF(TTM)82.88
FCFY7.73%
OCF(TTM)99.82
OCFY9.32%
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 | 3.11 |
F-Score6
WACC8.58%
ROIC/WACC0.38
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 17.11 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.