McGraw Hill, Inc. (MH)
NYSE:MH
Want to see MH full AI Analyst Report?
Top Page
McGraw Hill, Inc.
(NYSE:MH)
Select Model
Select Model
Rating:53Neutral
Price Target:
$12.50
▼(-11.35% Downside)
Action:Reiterated
Date:06/12/26
The score is held back primarily by high leverage and a very high P/E multiple. Offsetting factors include consistently positive cash generation, improving profitability, and an earnings-call outlook that points to FY2027 margin expansion and stronger free cash flow, though technicals remain more neutral-to-weak given the stock sits below key longer-term moving averages.
Positive Factors
High recurring & digital revenue mix
A >73% recurring revenue base with multi-year growth increases predictability and supports durable cash generation. Institutional subscriptions and digital courseware reduce exposure to abrupt textbook cycles, enabling steadier free cash flow, reinvestment in product, and smoother deleveraging over the next 2–6 months.
Negative Factors
High leverage and capital-structure risk
Material gross debt levels and elevated debt-to-equity leave limited financial flexibility and heighten refinancing, interest expense, and covenant risk. Even with recent paydowns, leverage constrains investment pacing and makes sustained margin or revenue setbacks more damaging to long-term deleveraging plans.
Read all positive and negative factors
Positive Factors
Negative Factors
High recurring & digital revenue mix
A >73% recurring revenue base with multi-year growth increases predictability and supports durable cash generation. Institutional subscriptions and digital courseware reduce exposure to abrupt textbook cycles, enabling steadier free cash flow, reinvestment in product, and smoother deleveraging over the next 2–6 months.
Read all positive factors
McGraw Hill, Inc. (MH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.25B
Dividend YieldN/A
Average Volume (3M)454.84K
Price to Earnings (P/E)62.8
Beta (1Y)<0.01
Revenue Growth0.07%
EPS GrowthN/A
CountryUS
Employees4,200
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.17
Shares Outstanding191,276,170
10 Day Avg. Volume594,799
30 Day Avg. Volume454,844
Financial Highlights & Ratios
PEG Ratio-0.50
Price to Book (P/B)3.46
Price to Sales (P/S)1.20
P/FCF Ratio10.20
Enterprise Value/Market Cap1.99
Enterprise Value/Revenue2.13
Enterprise Value/Gross Profit2.63
Enterprise Value/Ebitda8.64
Forecast
1Y Price Target
$17.70Price Target Upside25.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)1.93
Revenue Forecast (FY)$2.15B
McGraw Hill, Inc. Business Overview & Revenue Model
Company Description
McGraw Hill, Inc., known as McGraw Hill, delivers educational resources to students and professionals across primary (K-12), higher education, and specialized professional sectors, both domestically in the United States and internationally. The co...
How the Company Makes Money
McGraw Hill primarily makes money by selling educational content and learning solutions to institutions (such as schools, school districts, colleges, and universities), educators, students, and professionals. Key revenue streams include: (1) Digit...
McGraw Hill, Inc. Earnings Call Summary
Earnings Call Date:Jun 11, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture: key strengths include higher-education share gains (approaching 31%), recurring revenue growth (~6% to $1.5B), margin expansion (≈+80 bps), meaningful AI product traction (8 tools, >7.5M users), strong learning outcomes validated by independent research, and significant debt reduction ($646M). Headwinds are concentrated in K–12 (FY2026 K–12 revenue down 9%), slower-than-expected California math adoption (timing shift of ~$100M), international macro pressures (FY2026 international revenue -7% and a $39M impairment), and some one-time benefits in FY2026 that are not recurring. Management provided conservative but above-IPO-expectations guidance for recurring revenue and EBITDA, and is piloting agentic AI/knowledge models with commercial and pricing work still underway. Overall, strengths in higher education, AI-enabled product adoption, cash generation, and balance sheet improvement outweigh the K–12 and international timing challenges, which are framed as addressable and timing-related.Positive Updates
Full Year Revenue Above Guidance
Fiscal 2026 revenue of $2.1 billion came in above the high end of the guided range and was $2 million above prior year, demonstrating resilience versus expectations.
Negative Updates
K–12 Revenue Decline and Slower Adoption
Fiscal 2026 K–12 revenue declined 9% year-over-year to $884 million, reflecting a smaller K–12 market opportunity and tough prior-year comps. Management expects FY2027 K–12 capture to be at the lower end of its historical 25%–30% range and noted slower-than-expected California math adoption, with roughly $100 million of opportunity shifting from FY2027 into FY2028.
Read all updates
Q4-2026 Updates
Positive
Negative
Full Year Revenue Above Guidance
Fiscal 2026 revenue of $2.1 billion came in above the high end of the guided range and was $2 million above prior year, demonstrating resilience versus expectations.
Read all positive updates
Company Guidance
McGraw Hill guided fiscal 2027 revenue of $2.115–$2.175 billion (consistent with its IPO dollar outlook), recurring revenue of $1.587–$1.627 billion, and adjusted EBITDA of $750–$790 million (implied margin ~35.9% at the midpoint, ~+50 bps YoY); it expects ~55% of full‑year revenue in H1 (weighted to Q2), unlevered free cash flow of ~ $400 million (up ~20% YoY), CapEx and product development ~10% of revenue, stock‑based compensation ~ $15 million, cash/GAAP taxes $20–$40 million, GAAP interest expense below $180 million, and a modest decline in depreciation & amortization (including $208 million of Platinum‑related intangible amortization); management reiterated a net‑leverage target of 2.0–2.5x and authorized a $50 million share repurchase plan.McGraw Hill, Inc. Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
34
Negative
Cash Flow
63
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.10B | 2.10B | 1.96B | 1.95B | 1.79B |
| Gross Profit | 1.70B | 1.68B | 1.54B | 1.48B | 1.37B |
| EBITDA | 276.78M | 669.16M | 571.18M | 495.71M | 335.69M |
| Net Income | 35.32M | -85.84M | -193.02M | -404.10M | -674.25M |
Balance Sheet | |||||
| Total Assets | 5.49B | 5.76B | 5.81B | 6.07B | 6.59B |
| Cash, Cash Equivalents and Short-Term Investments | 253.52M | 389.83M | 203.62M | 181.47M | 296.37M |
| Total Debt | 2.64B | 3.26B | 3.53B | 3.59B | 3.70B |
| Total Liabilities | 4.76B | 5.48B | 5.44B | 5.51B | 5.64B |
| Stockholders Equity | 726.22M | 280.24M | 368.75M | 558.13M | 948.95M |
Cash Flow | |||||
| Free Cash Flow | 246.31M | 485.22M | 79.55M | 116.06M | 175.04M |
| Operating Cash Flow | 331.17M | 646.28M | 236.16M | 256.62M | 205.69M |
| Investing Cash Flow | -203.86M | -167.06M | -136.11M | -162.32M | -5.32B |
| Financing Cash Flow | -264.87M | -294.68M | -77.24M | -204.57M | 5.06B |
McGraw Hill, Inc. Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $7.75B | 17.49 | 10.79% | 1.03% | 12.38% | 11.05% | |
70 Outperform | $3.91B | 17.94 | 29.53% | ― | 7.43% | 0.49% | |
70 Outperform | $5.61B | 3.21 | 14.92% | ― | 34.03% | 578.17% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $1.53B | ― | -10.06% | ― | 9.79% | 8.61% | |
53 Neutral | $2.25B | 62.78 | -13.36% | ― | 0.07% | ― |
* Consumer Defensive Sector Average
MH
McGraw Hill, Inc.
11.76
-5.05
-30.04%
LOPE
Grand Canyon Education
147.49
-39.20
-21.00%
EDU
New Oriental Education Tech
46.67
-0.02
-0.03%
TAL
TAL Education Group
9.26
-1.31
-12.39%
COUR
Coursera
5.34
-2.92
-35.35%
McGraw Hill, Inc. Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
McGraw Hill Reports Fiscal 2026 Results and Outlook
Positive
Jun 11, 2026
On June 11, 2026, McGraw Hill reported fiscal year 2026 results showing total revenue of $2.10 billion, essentially flat year-over-year, but with re-occurring revenue up 5.8% to $1.54 billion and digital revenue up 5.5% to $1.43 billion, driving G...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.