McGraw Hill, Inc. (MH) AI Stock Analysis

• Market Cap: $3.02B
• Dividend Yield: N/A
• Average Volume (3M): 852.21K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.57
• Revenue Growth: 3.19%
• EPS Growth: -6.25%
• Country: US
• Employees: 4,200
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 1.40
• Shares Outstanding: 191,001,530
• 10 Day Avg. Volume: 531,689
• 30 Day Avg. Volume: 852,213
• PEG Ratio: 0.68
• Price to Book (P/B): 11.59
• Price to Sales (P/S): 1.55
• P/FCF Ratio: 6.69
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $20.13
• Price Target Upside: 31.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $15.00 ▼(-2.28% Downside)

The score is primarily constrained by financial risk (high leverage and negative net profitability) and weak technical momentum, partially offset by a constructive earnings call with raised guidance and strong digital/Higher Education performance.

Positive Factors

Digital & Higher Education Growth

McGraw Hill's shift toward digital and recurring revenue materially improves predictability and unit economics. Higher digital mix reduces distribution costs and supports subscription pricing, enabling steadier cash flows and investment in product improvement over multiple years.

Higher Education Market Share Gains

A 160bp share gain to a 30% position in Higher Education signals durable competitive advantage, likely from content, platform integration and distribution relationships. Market-share momentum supports pricing leverage and sustained revenue growth in a large addressable market.

Debt Reduction & Interest Savings

Aggressive prepayments materially lower gross debt and recurring interest costs, improving solvency and free cash flow capacity. Sustained deleveraging towards a 2-2.5x net leverage target enhances financial flexibility for product investment and reduces refinancing risk.

Negative Factors

High Leverage & Negative ROE

Extremely high leverage and deeply negative ROE indicate capital structure stress and weak shareholder returns. High debt amplifies earnings volatility and limits strategic options, making the company sensitive to revenue dips and constraining long-term investment capacity.

Negative Net Profitability

Operating margins are solid but net losses persist, suggesting interest, tax, depreciation or non-operating items erode profitability. Continued net losses undermine retained earnings and equity value, impede dividend capacity, and weaken ability to self-finance growth.

Declines in K-12 & International

Contractions in K-12 and international segments reduce product diversification and expose the company to concentrated growth risks. If structural, these declines could cap overall top-line growth and force greater reliance on a narrower Higher Education/digital mix.

McGraw Hill, Inc. Business Overview & Revenue Model

Company Description

McGraw Hill, Inc., doing business as McGraw Hill, provides information solutions for K-12, higher education, and professional markets in the United States and internationally. It operates through K-12, Higher Education, Global Professional, and International segments. The K-12 segment provides core, supplemental, and intervention curricula to support the needs of the K-12 schools. It sells blended digital and print learning solutions directly to school districts across the United States. The Higher Education segment offers students, instructors, and institutions with adaptive digital learning solutions and content, and instructional materials. Its solutions are used by students enrolled in non-profit colleges and universities, as well as for-profit institutions. This segment sells its higher education solutions to online retailers and distribution partners, as well as sells directly to student through its proprietary e-commerce platform. The Global Professional segment provides students, institutions, and professionals with comprehensive medical and engineering learning solutions. This segment sells digital learning solutions and print materials accessible through a range of mediums for learners and customers. The International segment offers digital and print solutions in approximately 100 countries and 80 languages outside of the United States. This segment, through its distribution network, serve the needs of learners and educators with K-12 and higher education solutions. McGraw Hill, Inc. was formerly known as Mav Holding Corporation and changed its name to McGraw Hill, Inc. in October 2022. The company was founded in 1888 and is headquartered in Columbus, Ohio.

How the Company Makes Money

McGraw Hill generates revenue primarily through the sale of educational materials and services across its various sectors. Key revenue streams include the sale of print and digital textbooks, subscription services for digital learning platforms, and licensing fees for educational content. Additionally, the company earns money from assessment products and services, including standardized testing solutions. McGraw Hill also engages in strategic partnerships with educational institutions and technology providers, which can enhance its product offerings and expand its market reach, contributing further to its earnings. The ongoing transition towards digital learning solutions and the increasing demand for educational technology also play a significant role in driving the company's revenue growth.

McGraw Hill, Inc. Financial Statement Overview

Summary

McGraw Hill, Inc. shows strong revenue growth but faces challenges with profitability and high leverage. The high debt-to-equity ratio and negative return on equity indicate financial risk, while cash flow metrics show mixed performance.

Income Statement

McGraw Hill, Inc. has shown significant revenue growth of 401.14% in the latest year, indicating strong top-line expansion. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -4.09%. The EBIT and EBITDA margins are relatively healthy at 14.60% and 31.85%, respectively, suggesting operational efficiency despite net losses.

Balance Sheet

The company has a high debt-to-equity ratio of 11.62, indicating significant leverage and potential financial risk. The negative return on equity of -30.63% reflects ongoing challenges in generating returns for shareholders. The equity ratio is low, suggesting limited equity financing relative to total assets.

Cash Flow

Operating cash flow has improved, with a coverage ratio of 0.49, indicating better cash generation relative to net income. However, free cash flow growth is negative at -442.06%, highlighting potential cash flow challenges. The free cash flow to net income ratio is 0.75, showing some ability to convert earnings into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023
Income Statement
Total Revenue	4.69B	2.10B	1.96B	1.95B
Gross Profit	3.73B	1.68B	1.54B	1.48B
EBITDA	1.49B	669.16M	571.18M	495.71M
Net Income	108.41M	-85.84M	-193.02M	-404.10M
Balance Sheet
Total Assets	6.05B	5.76B	5.81B	6.07B
Cash, Cash Equivalents and Short-Term Investments	463.19M	389.83M	203.62M	181.47M
Total Debt	2.88B	3.26B	3.53B	3.59B
Total Liabilities	5.25B	5.48B	5.44B	5.51B
Stockholders Equity	794.59M	280.24M	368.75M	558.13M
Cash Flow
Free Cash Flow	505.41M	485.22M	79.55M	116.06M
Operating Cash Flow	784.26M	646.28M	236.16M	256.62M
Investing Cash Flow	-396.00M	-167.06M	-136.11M	-162.32M
Financing Cash Flow	-128.20M	-294.68M	-77.24M	-204.57M

McGraw Hill, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOPE	74 Outperform	$4.95B	23.52	27.77%	―	7.05%	-2.63%
EDU	70 Outperform	$9.69B	25.25	9.28%	1.03%	7.22%	-2.84%
UDMY	68 Neutral	$840.67M	-191.04	-1.78%	―	2.53%	95.79%
TAL	67 Neutral	$7.46B	40.92	4.77%	―	44.37%	146.96%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
COUR	61 Neutral	$1.23B	-23.02	-7.43%	―	8.10%	43.35%
MH	57 Neutral	$3.02B	-28.21	―	―	3.19%	-6.25%

McGraw Hill, Inc. Corporate Events

McGraw Hill Appoints Brian Van Dam Chief Accounting Officer

On January 5, 2026, McGraw Hill, Inc. created and filled a new executive role by appointing Brian Van Dam as its Chief Accounting Officer and principal accounting officer, signaling an enhancement of its senior finance leadership structure. Van Dam, a 52-year-old accounting executive with prior controller and senior finance roles at Array Corporation, Transfix, Inc., and Xerox Corporation, will receive a $350,000 annual base salary, a target bonus opportunity of 45% of base pay under the company’s incentive plan, a $20,000 sign-on bonus subject to clawback under certain conditions, and potential future equity-based awards, while the existing Senior Vice President, Controller, Muhammad Ali Jamal, will remain in his role but no longer serve as principal accounting officer, reflecting a reallocation of responsibilities within McGraw Hill’s finance organization without any disclosed related-party or conflict-of-interest concerns.

The most recent analyst rating on (MH) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on McGraw Hill, Inc. stock, see the MH Stock Forecast page.

McGraw Hill Names Philip Moyer as New CEO

On January 6, 2026, McGraw Hill announced that Simon Allen will retire as president and CEO effective February 9, 2026, after leading the company since October 2019, but will remain chair of the board and continue to support strategy and governance. The board has appointed former Vimeo CEO and Google Cloud AI executive Philip Moyer as Allen’s successor and as a director effective the same date, and expanded the board from nine to 11 members, adding Moyer and Platinum Equity managing director Eric Worley as Class II and Class I directors, respectively. Allen’s transition package includes continued eligibility for a full fiscal 2026 annual bonus, a quarterly cash transition supplement through up to December 31, 2028, continued tax services for a limited period, and standard non-employee director compensation while serving as chair, underscoring an orderly, non-contentious succession. Moyer’s employment agreement provides a $1.2 million base salary, a $1.8 million target annual bonus, a $2.5 million sign-on bonus, an $8 million initial equity award split between time- and performance-vested RSUs tied to ambitious share-price hurdles, matching RSUs linked to his own share purchases, and enhanced severance protections, aligning his incentives with long-term shareholder value and stock performance. The appointment of a technology- and AI-focused leader follows a period in which Allen shifted McGraw Hill’s revenue mix to nearly two-thirds digital and roughly 60% recurring, and signals an intention to accelerate AI-driven, personalized learning offerings while maintaining continuity at the board level and strengthening Platinum Equity’s representation through Worley’s addition.

The most recent analyst rating on (MH) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on McGraw Hill, Inc. stock, see the MH Stock Forecast page.

McGraw Hill Announces $50 Million Loan Prepayment

On December 10, 2025, McGraw Hill, Inc. announced a $50 million prepayment on its term loan, further strengthening its balance sheet. This move is part of a broader strategy to reduce gross debt, with $592 million paid year-to-date, and aligns with the company’s commitment to maintaining a 2-2.5x net leverage target while continuing strategic investments for future growth.

The most recent analyst rating on (MH) stock is a Hold with a $17.50 price target. To see the full list of analyst forecasts on McGraw Hill, Inc. stock, see the MH Stock Forecast page.

McGraw Hill Announces $150 Million Loan Prepayment

On October 16, 2025, McGraw Hill, Inc. announced a $150 million prepayment of its term loan, reducing the outstanding balance to approximately $618 million. This move is part of the company’s ongoing efforts to deleverage and strengthen its financial position, resulting in expected annualized cash interest savings of over $40 million. The company emphasizes its commitment to financial discipline and achieving a net leverage target of 2-2.5x, reflecting the strength of its business and strategic focus on debt reduction.

The most recent analyst rating on (MH) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on McGraw Hill, Inc. stock, see the MH Stock Forecast page.