Graham Holdings (GHC) AI Stock Analysis

• Market Cap: $4.18B
• Dividend Yield: 0.75%
• Average Volume (3M): 47.77K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.76
• Revenue Growth: 5.91%
• EPS Growth: 137.49%
• Country: US
• Employees: 15,382
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Education & Training Services
• EPS (TTM): 5.45
• Shares Outstanding: 3,395,988
• 10 Day Avg. Volume: 82,601
• 30 Day Avg. Volume: 47,766
• PEG Ratio: -0.54
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.06
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 2.77
• Enterprise Value/Ebitda: 0.98
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: $1,050.00 ▲(9.50%Upside)

Graham Holdings receives a favorable overall score due to its strong valuation metrics and solid financial performance, despite neutral technical indicators. The company's low P/E ratio suggests potential undervaluation, contributing significantly to the score.

Graham Holdings Business Overview & Revenue Model

Company Description

Graham Holdings Company, through its subsidiaries, operates as a diversified education and media company worldwide. It provides test preparation services and materials; data science and training services; professional training and exam preparation for professional certifications and licensures; and non-academic operations support services to the Purdue University Global. The company also offers training, test preparation, and degrees for accounting and financial services professionals; English-language training, academic preparation programs, and test preparation for English proficiency exams; and A-level examination preparation services, as well as operates three colleges, a business school, a higher education institution, and an online learning institution. In addition, it owns and operates seven television stations; and provides social media management tools to connect newsrooms with their users, as well as produces Foreign Policy magazine and ForeignPolicy.com website. Further, the company publishes Slate, an online magazine; and two French-language news magazine websites at slate.fr and slateafrique.com. Additionally, it provides social media marketing solutions; home health and hospice services; burners, igniters, dampers, and controls; screw jacks, linear actuators and related linear motion products, and lifting systems; pressure impregnated kiln-dried lumber and plywood products; cybersecurity training solutions; digital advertising services; and power charging and data systems, industrial and commercial indoor lighting solutions, and electrical components and assemblies. The company also owns and operates 11 restaurants and entertainment venues; and engages in automobile dealerships business. The company was formerly known as The Washington Post Company and changed its name to Graham Holdings Company in November 2013. Graham Holdings Company was founded in 1877 and is based in Arlington, Virginia.

How the Company Makes Money

Graham Holdings Company generates revenue through multiple streams reflecting its diverse operations. A significant portion of its earnings comes from its education segment, primarily through Kaplan, Inc., which offers a wide range of educational and career services, including test preparation, language training, and professional training programs. The media segment contributes to revenue through advertising, subscriptions, and content distribution associated with its various media outlets. Additionally, GHC earns from its manufacturing and automotive segments through the production and sale of industrial goods and automotive dealerships. The healthcare segment also contributes to the company's earnings through patient services and health-related products. Strategic acquisitions and partnerships in various sectors further bolster GHC's revenue streams, allowing the company to maintain a balanced and resilient financial performance.

Graham Holdings Financial Statement Overview

Summary

Graham Holdings exhibits strong financial health with robust profitability and a conservative balance sheet. While revenue growth has faced recent challenges, efficient operations and strong cash flow generation support future financial stability.

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
EBITDA	1.24B	1.40B	571.50M	375.46M	687.24M	667.04M
Net Income	624.10M	724.63M	205.29M	67.08M	352.07M	300.37M
Balance Sheet
Total Assets	7.62B	7.68B	7.19B	6.58B	7.43B	6.44B
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.12B	866.92M	791.73M	970.33M	1.00B
Total Debt	1.30B	1.17B	1.25B	1.19B	1.15B	1.03B
Total Liabilities	3.25B	3.35B	3.12B	2.83B	3.01B	2.68B
Stockholders Equity	4.29B	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: 958.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 958.87 is above the 20-day moving average (MA) of 954.87, above the 50-day MA of 945.38, and above the 200-day MA of 903.29, indicating a bullish trend. The MACD of 2.76 indicates Negative momentum. The RSI at 52.43 is Neutral, neither overbought nor oversold. The STOCH value of 48.03 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
LOPE	81 Outperform	$5.38B	23.80	29.85%	―	6.31%	11.24%
LRN	81 Outperform	$6.34B	22.74	23.76%	―	14.90%	60.56%
ATGE	80 Outperform	$4.62B	21.32	16.62%	―	13.10%	127.72%
STRA	75 Outperform	$2.08B	18.39	6.86%	2.79%	5.72%	11.02%
LAUR	74 Outperform	$3.44B	12.30	31.14%	―	1.26%	140.30%
GHC	73 Outperform	$4.18B	6.72	14.87%	0.75%	5.91%	137.49%
Sector *	65 Neutral	$26.88B	15.06	-4.01%	3.23%	1.02%	2.11%

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.