Graham Holdings (GHC) AI Stock Analysis

• Market Cap: $4.23B
• Dividend Yield: 0.72%
• Average Volume (3M): 27.41K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.80
• Revenue Growth: 5.91%
• EPS Growth: 137.49%
• Country: US
• Employees: 15,382
• Sector: Consumer Defensive
• Sector Strength: 78
• Industry: Education & Training Services
• EPS (TTM): 5.45
• Shares Outstanding: 3,395,988
• 10 Day Avg. Volume: 25,345
• 30 Day Avg. Volume: 27,412
• PEG Ratio: -0.49
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Graham Holdings shows a robust financial foundation with strong profitability and efficient operations, though revenue growth is inconsistent. The technical analysis presents a positive trend, albeit with potential overbought conditions. The stock's low valuation suggests upside potential. Corporate events reinforce strong leadership but have minimal immediate stock impact.

Graham Holdings Business Overview & Revenue Model

Company Description

Graham Holdings Company (GHC) is a diversified conglomerate with operations spanning several sectors including education, media, and manufacturing. The company is known for its ownership of educational services through Kaplan, a prominent provider of educational and career services. Additionally, Graham Holdings holds interests in television broadcasting, through a number of local TV stations, and in the manufacturing sector, which includes industrial and commercial facilities.

How the Company Makes Money

Graham Holdings generates revenue through its diverse portfolio of businesses. The education sector, primarily represented by Kaplan, contributes significantly by offering a range of services such as test preparation, higher education, and professional training. The company's media segment earns money from advertising and subscription revenue generated by its television broadcasting operations. Additionally, Graham Holdings' manufacturing and other businesses diversify its revenue streams, contributing through the sale of products and services across different industries. Strategic acquisitions and investments also play a role in expanding its revenue base.

Graham Holdings Financial Statement Overview

Summary

Graham Holdings exhibits strong financial health with robust profitability, conservative leverage, and strong cash flow generation. Despite recent revenue growth challenges, the company maintains efficient operations and favorable cash flow metrics.

Income Statement

Graham Holdings has demonstrated solid profitability with a gross profit margin of 29.46% and a net profit margin of 17.15% for TTM (Trailing-Twelve-Months). Revenue growth has been inconsistent, with a recent decline of 24.07% compared to the previous annual report. However, the EBIT and EBITDA margins are relatively strong at 6.98% and 33.20%, respectively, indicating efficient operations.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of 0.30, indicating conservative leverage. The return on equity is robust at 14.53%, showing effective use of shareholder funds. The equity ratio stands at 56.39%, reflecting a solid equity base relative to total assets, though there is room for improvement in asset utilization.

Cash Flow

Cash flow performance is strong with a free cash flow growth rate of 15.67%. The operating cash flow to net income ratio is 0.72, and the free cash flow to net income ratio is 0.60, both suggesting healthy cash generation relative to earnings.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.80B	4.79B	4.41B	3.92B	3.19B	2.89B
	Gross Profit
1.42B	1.34B	1.31B	1.27B	1.07B	977.01M
	EBIT
253.90M	215.50M	69.39M	444.72M	273.42M	414.96M
	EBITDA
1.24B	1.40B	571.50M	375.46M	687.24M	667.04M
	Net Income Common Stockholders
624.10M	724.63M	205.29M	67.08M	352.07M	300.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
933.80M	1.12B	866.92M	791.73M	970.33M	1.00B
	Total Assets
7.26B	7.68B	7.19B	6.58B	7.43B	6.44B
	Total Debt
1.24B	1.17B	1.25B	1.19B	1.15B	1.03B
	Net Debt
1.11B	908.46M	1.08B	1.02B	1.00B	614.21M
	Total Liabilities
3.16B	3.35B	3.12B	2.83B	3.01B	2.68B
	Stockholders Equity
4.04B	4.26B	3.98B	3.73B	4.40B	3.76B
Cash Flow		Free Cash Flow
374.80M	324.08M	166.43M	152.92M	39.89M	141.07M
	Operating Cash Flow
451.94M	406.99M	259.88M	235.60M	202.43M	210.66M
	Investing Cash Flow
-59.96M	-62.33M	-152.97M	-184.07M	-494.63M	199.37M
	Financing Cash Flow
-364.22M	-240.97M	-99.83M	-18.11M	31.03M	-204.00M

Graham Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 987.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GHC, the sentiment is Positive. The current price of 987.93 is above the 20-day moving average (MA) of 931.02, above the 50-day MA of 935.72, and above the 200-day MA of 871.30, indicating a bullish trend. The MACD of 11.98 indicates Negative momentum. The RSI at 64.85 is Neutral, neither overbought nor oversold. The STOCH value of 86.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GHC.

Graham Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATGE	81 Outperform	$4.90B	22.61	16.62%	―	13.10%	127.72%
LRN	81 Outperform	$6.81B	24.44	23.76%	―	14.90%	60.56%
LOPE	77 Outperform	$5.56B	24.64	29.85%	―	6.31%	11.24%
GHC	74 Outperform	$4.23B	6.80	14.87%	0.72%	5.91%	137.49%
LAUR	74 Outperform	$3.40B	12.19	31.14%	―	1.26%	140.30%
STRA	73 Outperform	$2.16B	19.12	6.86%	2.69%	5.72%	11.02%
Sector *	64 Neutral	$8.72B	14.80	5.05%	174.27%	3.54%	3.26%

Graham Holdings Corporate Events

Graham Holdings Elects Directors at Annual Meeting

On May 6, 2025, Graham Holdings Company held its Annual Meeting of Stockholders, during which all ten nominated directors were elected by the stockholders. Additionally, the Class A stockholders approved the 2024 compensation for the company’s named executive officers, indicating continued support for the company’s leadership and compensation strategies.

Spark’s Take on GHC Stock

According to Spark, TipRanks’ AI Analyst, GHC is a Outperform.

Graham Holdings has a robust financial foundation with strong profitability and cash flow generation, though revenue growth has been inconsistent. The stock’s attractive valuation suggests potential upside, despite mixed technical signals. The positive corporate event of Jack Markell’s return to the Board adds strategic value, though its impact on stock price is minimal.

To see Spark’s full report on GHC stock, click here.

Graham Holdings Welcomes Jack Markell Back to Board

Graham Holdings Company announced that Jack A. Markell has been elected to its Board of Directors on February 25, 2025. Markell, who previously served on the Board from May 2017 to December 2021, brings extensive experience from his roles as a former US Ambassador and Governor of Delaware. His return is expected to strengthen the Board with his strategic insights and leadership experience, as highlighted by CEO Timothy J. O’Shaughnessy.