McGraw Hill, Inc. (MH) AI Stock Analysis

• Market Cap: $3.30B
• Dividend Yield: N/A
• Average Volume (3M): 852.21K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.63
• 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: 16.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $18.00 ▲(3.75% Upside)

McGraw Hill's overall stock score is driven by strong earnings call performance and positive corporate events related to debt reduction. However, financial performance challenges, particularly high leverage and negative profitability, weigh down the score. Technical indicators show positive momentum, but valuation concerns due to ongoing losses limit the upside.

Positive Factors

Digital Revenue Growth

The growth in digital revenue indicates a successful transition to digital platforms, enhancing scalability and aligning with industry trends towards digital learning.

Higher Education Market Share

Increasing market share in Higher Education signifies competitive strength and effective product offerings, supporting long-term revenue growth.

Debt Reduction Strategy

Strategic debt reduction improves financial health, reduces interest expenses, and enhances cash flow, supporting sustainable growth.

Negative Factors

High Leverage

High leverage can constrain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Profitability Challenges

Persistent profitability issues may hinder long-term value creation and limit the company's ability to reinvest in business expansion.

K-12 Revenue Decline

Declining K-12 revenue reflects market challenges and could impact overall growth if not addressed, as this segment is a key revenue driver.

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	$4.70B	22.69	27.77%	―	7.05%	-2.63%
EDU	70 Outperform	$9.10B	24.52	9.28%	1.03%	7.22%	-2.84%
UDMY	68 Neutral	$855.12M	-216.42	-1.78%	―	2.53%	95.79%
TAL	67 Neutral	$6.72B	38.04	4.77%	―	44.37%	146.96%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
COUR	62 Neutral	$1.28B	―	-7.43%	―	8.10%	43.35%
MH	60 Neutral	$3.30B	-31.88	―	―	3.19%	-6.25%

McGraw Hill, Inc. Corporate Events

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.

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.