GRAHAM HOLDINGS CO-CLASS B (GHC) Stock Fundamental Analysis
USA - NYSE:GHC - US3846371041 - Common Stock
1159.9 USD
+16.59 (+1.45%)
Taking everything into account, GHC scores 5 out of 10 in our fundamental rating. GHC was compared to 74 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.
GHC had a positive operating cash flow in the past year.
Each year in the past 5 years GHC has been profitable.
Each year in the past 5 years GHC had a positive operating cash flow.
1.2 Ratios
GHC's Return On Assets of 8.89% is amongst the best of the industry. GHC outperforms 81.08% of its industry peers.
Looking at the Return On Equity, with a value of 15.56%, GHC is in the better half of the industry, outperforming 77.03% of the companies in the same industry.
With a Return On Invested Capital value of 3.51%, GHC perfoms like the industry average, outperforming 58.11% of the companies in the same industry.
GHC had an Average Return On Invested Capital over the past 3 years of 2.58%. This is significantly below the industry average of 9.88%.
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
With an excellent Profit Margin value of 14.01%, GHC belongs to the best of the industry, outperforming 83.78% 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 (6.16%) which is comparable to the rest of the industry.
GHC's Operating Margin has been stable in the last couple of years.
GHC has a worse Gross Margin (31.09%) than 66.22% of its industry peers.
GHC's Gross Margin has been stable in the last couple of years.
| 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.
GHC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GHC has less shares outstanding
The debt/assets ratio for GHC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.24 indicates that GHC is not in any danger for bankruptcy at the moment.
The Altman-Z score of GHC (3.24) is better than 75.68% of its industry peers.
The Debt to FCF ratio of GHC is 1.98, which is an excellent value as it means it would take GHC, only 1.98 years of fcf income to pay off all of its debts.
GHC has a better Debt to FCF ratio (1.98) than 78.38% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that GHC is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.08, GHC is doing good in the industry, outperforming 64.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 3.24 |
ROIC/WACC0.43
WACC8.22%
2.3 Liquidity
A Current Ratio of 1.27 indicates that GHC should not have too much problems paying its short term obligations.
The Current ratio of GHC (1.27) is comparable to the rest of the 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.
With a Quick ratio value of 1.10, GHC perfoms like the industry average, outperforming 52.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 45.16% 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 -16.20% in the last year.
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)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.
Based on estimates for the next years, GHC will show a small growth in Revenue. The Revenue will grow by 2.87% on average per year.
EPS Next Y-26.99%
EPS Next 2Y1.23%
EPS Next 3Y-1.28%
EPS Next 5YN/A
Revenue Next Year-0.93%
Revenue Next 2Y2.67%
Revenue Next 3Y2.87%
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
GHC is valuated rather expensively with a Price/Earnings ratio of 17.63.
72.97% 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 27.41.
Based on the Price/Forward Earnings ratio of 17.75, the valuation of GHC can be described as rather expensive.
74.32% of the companies in the same industry are more expensive than GHC, based on the Price/Forward Earnings ratio.
GHC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.63 | ||
| Fwd PE | 17.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GHC is valued cheaply inside the industry as 85.14% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GHC indicates a rather cheap valuation: GHC is cheaper than 86.49% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.07 | ||
| EV/EBITDA | 7.42 |
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)1.29
EPS Next 2Y1.23%
EPS Next 3Y-1.28%
5. Dividend
5.1 Amount
GHC has a yearly dividend return of 0.61%, which is pretty low.
GHC's Dividend Yield is rather good when compared to the industry average which is at 3.04. GHC pays more dividend than 83.78% of the companies in the same industry.
With a Dividend Yield of 0.61, GHC pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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
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 (9/18/2025, 10:42:13 PM)
1159.9
+16.59 (+1.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners81.78%
Inst Owner Change2.69%
Ins Owners6.6%
Ins Owner Change0.94%
Market Cap5.06B
Analysts42.5
Price Target800.7 (-30.97%)
Short Float %2.25%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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)-2.45%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.63 | ||
| Fwd PE | 17.75 | ||
| P/S | 1.05 | ||
| P/FCF | 12.07 | ||
| P/OCF | 10.22 | ||
| P/B | 1.16 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 7.42 |
EPS(TTM)65.8
EY5.67%
EPS(NY)65.35
Fwd EY5.63%
FCF(TTM)96.11
FCFY8.29%
OCF(TTM)113.46
OCFY9.78%
SpS1108.86
BVpS998.14
TBVpS599.3
PEG (NY)N/A
PEG (5Y)1.29
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%
ROICexcg growth 3Y29.13%
ROICexcg 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 | 0.62 | ||
| Cap/Depr | 32.97% | ||
| Cap/Sales | 1.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.81% | ||
| Profit Quality | 61.86% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 3.24 |
F-Score6
WACC8.22%
ROIC/WACC0.43
Cap/Depr(3y)30.32%
Cap/Depr(5y)46.86%
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 Year-0.93%
Revenue Next 2Y2.67%
Revenue Next 3Y2.87%
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%