Graham Holdings (GHC) AI Stock Analysis

• Market Cap: $4.59B
• Dividend Yield: 0.65%
• Average Volume (3M): 31.22K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.87
• 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): 24.69
• Shares Outstanding: 3,398,422
• 10 Day Avg. Volume: 19,101
• 30 Day Avg. Volume: 31,219
• PEG Ratio: -0.27
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.97
• P/FCF Ratio: 17.78
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 1.23
• Enterprise Value/Gross Profit: 4.20
• Enterprise Value/Ebitda: 7.37
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 69.6
• Revenue Forecast (FY): $5.38B

• Rating: 64 Neutral
• Price Target: $1,143.00 ▲(0.38% Upside)
• Action: Downgraded Date: 02/25/26
• Date: Action: Downgraded 02/25/26

The score is driven primarily by generally solid fundamentals (moderate leverage, improving profitability into 2024, and consistently positive free cash flow), tempered by the significant uncertainty created by the reported 2025 revenue of zero. Valuation is a clear positive due to the low P/E, but technicals are weak with the stock trading below key moving averages and negative MACD.

Positive Factors

Diversified business model

Graham Holdings operates across education (Kaplan), media, healthcare and manufacturing, spreading revenue sources and lowering single-market exposure. This diversification supports resilient cash flows and reduces reliance on any single cyclical sector over a multi-month horizon.

Consistent free cash flow

Historically consistent positive free cash flow provides the company with internal funding for capex, dividends, and acquisitions. Even with year-to-year volatility, recurring free cash generation supports long-term financial flexibility and strategic investment capacity.

Conservative leverage and rising equity

Moderate leverage and growing equity indicate a conservative balance sheet that enhances resilience to downturns and enables opportunistic capital deployment. Lower relative debt reduces refinancing risk and preserves headroom for strategic moves over the coming months.

Negative Factors

2025 revenue reporting anomaly

The 2025 annual revenue showing as zero is a material data anomaly that undermines confidence in recent-period metrics and trend analysis. This ambiguity complicates forecasting and investor assessment of operating performance until clarified or restated, a persistent governance concern.

Weakness in broadcasting and manufacturing

Television broadcasting and automotive-related businesses showed declines, dragging operating income and adjusted operating cash flow. Structural pressures in ad-driven broadcasting and cyclical manufacturing exposures can persist and depress segment profitability over multiple quarters.

Cash flow volatility and near-term decline

While cash generation is positive overall, volatility and a meaningful downshift in 2025 reduce predictability for funding and capital allocation. Lower adjusted operating cash flow constrains optionality for investments or buybacks until multi-quarter stability returns.

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 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

Balance sheet is solid with moderate leverage (debt-to-equity ~0.26–0.32 through 2020–2024) and rising equity, and profitability rebounded strongly in 2024 (net margin ~15%, ROE ~17%). Cash flow is consistently positive with positive free cash flow each year, though it is volatile and down in 2025. A major risk is the reported 2025 annual revenue of 0 (and -100% growth), which materially reduces confidence in the most recent operating picture.

Income Statement

From 2020–2024, revenue grew steadily (2024 up ~8.5% after 2023 up ~12.5%), and profitability improved meaningfully in 2024 with net margin rising to ~15% (from ~4.6% in 2023). However, 2025 annual revenue is shown as 0 with a -100% growth rate, which is a major red flag for data quality or a reporting anomaly; margins for 2025 are also not provided. Overall, the earnings trend is positive into 2024, but the latest reported revenue figure materially weakens confidence in the current trajectory.

Balance Sheet

Leverage appears conservative with debt-to-equity around ~0.26–0.32 during 2020–2024, and equity increased over time (about $3.76B in 2020 to ~$4.26B in 2024). Returns also strengthened in 2024 (return on equity ~17% vs. ~5% in 2023), indicating improved profitability on the capital base. A watch item is that total debt rose in 2024 and again in 2025 (to ~$1.32B), though it remains moderate relative to equity.

Cash Flow

Cash generation is consistently positive, with operating cash flow of ~$203M–$407M over 2020–2024 and free cash flow positive each year. Free cash flow improved sharply in 2022 and 2024, but it is volatile (notably weak in 2021 and down ~24% in 2025). Conversion is reasonable in 2023–2024 (free cash flow was ~64% and ~80% of net income, respectively), though operating cash flow relative to net income in 2024 is modest (~34%), suggesting earnings-to-cash timing effects.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.91B	4.79B	4.41B	3.92B	3.19B
Gross Profit	1.36B	1.47B	1.31B	1.27B	1.07B
EBITDA	740.61M	1.45B	665.21M	504.84M	719.55M
Net Income	292.29M	724.63M	205.29M	67.08M	352.07M
Balance Sheet
Total Assets	8.40B	7.68B	7.19B	6.55B	7.43B
Cash, Cash Equivalents and Short-Term Investments	1.36B	1.12B	866.92M	791.73M	970.33M
Total Debt	1.73B	1.17B	1.25B	1.19B	1.15B
Total Liabilities	3.53B	3.35B	3.12B	2.78B	3.00B
Stockholders Equity	4.79B	4.26B	3.98B	3.73B	4.40B
Cash Flow
Free Cash Flow	267.66M	324.08M	166.43M	152.92M	39.89M
Operating Cash Flow	339.54M	406.99M	259.88M	235.60M	202.43M
Investing Cash Flow	-180.97M	-62.33M	-154.03M	-177.15M	-494.63M
Financing Cash Flow	-156.30M	-240.97M	-98.78M	-25.02M	31.03M

Graham Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1138.66
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 1138.66 is above the 20-day moving average (MA) of 1107.09, above the 50-day MA of 1120.21, and above the 200-day MA of 1046.62, indicating a neutral trend. The MACD of -21.21 indicates Positive momentum. The RSI at 37.85 is Neutral, neither overbought nor oversold. The STOCH value of 24.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GHC.

Graham Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRDO	79 Outperform	$2.08B	13.80	16.55%	1.88%	24.23%	17.56%
LRN	76 Outperform	$3.59B	12.84	22.26%	―	17.25%	30.15%
LOPE	73 Outperform	$4.32B	20.61	28.24%	―	7.05%	-2.63%
LAUR	71 Outperform	$4.62B	16.88	26.23%	―	2.01%	-13.82%
GHC	64 Neutral	$4.59B	15.85	17.20%	0.65%	4.13%	228.37%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%