Graham Holdings (GHC) AI Stock Analysis

• Market Cap: $4.81B
• Dividend Yield: 0.65%
• Average Volume (3M): 31.22K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.81
• Revenue Growth: 4.13%
• EPS Growth: 228.37%
• Country: US
• Employees: 15,382
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 27.91
• Shares Outstanding: 3,398,422
• 10 Day Avg. Volume: 19,101
• 30 Day Avg. Volume: 31,219
• PEG Ratio: 0.02
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 11.76
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 3.45
• Enterprise Value/Ebitda: 3.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $1,209.00 ▲(8.82% Upside)

Graham Holdings' strong financial performance and attractive valuation are the primary drivers of its overall score. The company's robust revenue and profit growth, coupled with a low P/E ratio, make it appealing. Technical indicators suggest mixed momentum, but the recent corporate events positively impact the company's financial flexibility.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a robust market position and effective business strategies, supporting long-term financial stability.

Financial Structure Optimization

Optimizing the financial structure through strategic debt management enhances liquidity and financial flexibility, supporting future growth.

Profitability Improvement

Enhanced profitability through improved net profit margins reflects efficient operations and cost management, bolstering long-term resilience.

Negative Factors

Cash Flow Decline

Declining free cash flow growth may limit investment capacity and financial flexibility, posing risks to sustaining operations and growth.

Debt Management Concerns

Fluctuating debt levels, despite a solid balance sheet, could impact financial stability if not managed carefully, affecting long-term planning.

Cash Flow Management

Inadequate cash flow management may hinder the company's ability to fund operations and growth initiatives, affecting long-term performance.

Graham Holdings Business Overview & Revenue Model

Company Description

Graham Holdings Company (GHC) is a diversified holding company based in the United States, involved in various sectors including education, media, and healthcare. The company operates through several subsidiaries that provide a range of products and services, notably in the fields of television broadcasting, online education, and manufacturing. GHC is recognized for its ownership of The Washington Post and various other media properties, as well as its investment in Kaplan, a leading provider of educational services.

How the Company Makes Money

Graham Holdings generates revenue through multiple key streams. Primarily, it earns significant income from its education division, Kaplan, which offers online and campus-based programs across various fields, including professional training and higher education. The media segment contributes through advertising revenue, subscription fees, and syndication from The Washington Post and other media outlets. Additionally, GHC has interests in healthcare and manufacturing, providing further diversification of income sources. Strategic partnerships with educational institutions and digital platforms enhance Kaplan's reach and profitability, while advertising relationships and content distribution agreements bolster the media segment's financial performance.

Graham Holdings Financial Statement Overview

Summary

Graham Holdings exhibits strong financial performance with impressive revenue and profit growth, efficient operations, and a stable balance sheet. While cash flow management shows some areas for improvement, the overall financial health is robust, positioning the company well in the Education & Training Services industry.

Income Statement

Graham Holdings demonstrates strong revenue growth with a TTM increase of 1.48% and consistent gross profit margins around 30%. The net profit margin has improved significantly to 20.19% in the TTM, indicating enhanced profitability. EBIT and EBITDA margins are stable, reflecting efficient operations. Overall, the income statement shows robust growth and profitability trends.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.26, indicating prudent financial leverage. Return on equity is healthy at 16.87%, showcasing effective use of equity capital. The equity ratio is strong, suggesting a stable financial structure. However, slight fluctuations in debt levels warrant monitoring.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 13.77% in the TTM, which is a concern. However, the operating cash flow to net income ratio is reasonable at 0.26, and free cash flow to net income ratio is strong at 0.83, indicating good cash generation relative to profits. Overall, cash flow management is adequate but shows room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.91B	4.79B	4.41B	3.92B	3.19B	2.89B
Gross Profit	1.50B	1.47B	1.31B	1.27B	1.07B	977.01M
EBITDA	1.40B	1.45B	665.21M	504.84M	719.55M	696.74M
Net Income	732.36M	724.63M	205.29M	67.08M	352.07M	300.37M
Balance Sheet
Total Assets	7.85B	7.68B	7.19B	6.55B	7.43B	6.44B
Cash, Cash Equivalents and Short-Term Investments	1.20B	1.12B	866.92M	791.73M	970.33M	1.01B
Total Debt	1.17B	1.17B	1.25B	1.19B	1.15B	1.03B
Total Liabilities	3.31B	3.35B	3.12B	2.78B	3.00B	2.66B
Stockholders Equity	4.46B	4.26B	3.98B	3.73B	4.40B	3.76B
Cash Flow
Free Cash Flow	361.36M	324.08M	166.43M	152.92M	39.89M	141.07M
Operating Cash Flow	435.21M	406.99M	259.88M	235.60M	202.43M	210.66M
Investing Cash Flow	-125.01M	-62.33M	-154.03M	-177.15M	-494.63M	199.37M
Financing Cash Flow	-355.47M	-240.97M	-98.78M	-25.02M	31.03M	-204.00M

Graham Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1111.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1111.03 is above the 20-day moving average (MA) of 1099.80, above the 50-day MA of 1059.96, and above the 200-day MA of 1004.93, indicating a bullish trend. The MACD of 11.11 indicates Positive momentum. The RSI at 56.87 is Neutral, neither overbought nor oversold. The STOCH value of 61.29 is Neutral, 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	79 Outperform	$3.65B	15.42	17.38%	―	12.24%	52.97%
GHC	75 Outperform	$4.81B	6.59	17.20%	0.65%	4.13%	228.37%
LOPE	74 Outperform	$4.64B	22.67	27.77%	―	7.05%	-2.63%
LAUR	73 Outperform	$4.99B	24.77	20.15%	―	2.01%	-13.82%
PRDO	72 Outperform	$1.89B	12.53	16.14%	1.90%	24.23%	17.56%
LRN	70 Outperform	$2.90B	10.22	23.04%	―	17.25%	30.15%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Graham Holdings Corporate Events

Graham Holdings Secures $400M Credit Facility Amendment

On November 24, 2025, Graham Holdings Company entered into an Amendment and Restatement Agreement for a $400 million five-year revolving credit facility, replacing its previous credit agreement. This new facility increases the letter of credit sublimit and modifies certain financial thresholds, allowing the company to draw funds for general corporate purposes. Additionally, Graham Holdings completed the issuance of $500 million in senior unsecured notes due 2033, using the proceeds to redeem existing notes, refinance the revolving credit facility, and repay a term loan, thereby optimizing its financial structure.

Graham Holdings Announces $500M Senior Notes Offering

On November 13, 2025, Graham Holdings Company announced the pricing of a $500 million private offering of senior unsecured notes due 2033, with a 5.625% interest rate per annum. The offering is expected to close on November 24, 2025, and is part of a strategic financial maneuver to amend and restate its revolving credit facility, increasing commitments to $400 million. The proceeds from this offering will be used to redeem existing notes, refinance loans, and repay outstanding term loans, thereby optimizing the company’s financial structure.

Graham Holdings Announces $500M Senior Notes Offering

On November 12, 2025, Graham Holdings Company announced a private offering of $500 million in senior unsecured notes due 2033, guaranteed by its domestic subsidiaries. Concurrently, the company plans to amend its revolving credit facility to $400 million, using proceeds to redeem existing notes, refinance loans, and repay term loans, impacting its financial structure and stakeholder interests.