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GHC

Graham HoldingsNYSE:GHC Stock Report

Market Cap

US$3.0b

7D

2.1%

1Y

45.7%

Updated

25 Sep, 2021

Data

Company Financials +
GHC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance4/6
Financial Health5/6
Dividends1/6

GHC Overview

Graham Holdings Company, through its subsidiaries, operates as a diversified education and media company worldwide.

Graham Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Graham Holdings
Historical stock prices
Current Share PriceUS$597.29
52 Week HighUS$376.20
52 Week LowUS$685.00
Beta1.15
1 Month Change-1.49%
3 Month Change-5.15%
1 Year Change45.66%
3 Year Change3.11%
5 Year Change24.08%
Change since IPO111.43%

Recent News & Updates

Aug 22
Here's Why I Think Graham Holdings (NYSE:GHC) Is An Interesting Stock

Here's Why I Think Graham Holdings (NYSE:GHC) Is An Interesting Stock

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Jul 27
Calculating The Intrinsic Value Of Graham Holdings Company (NYSE:GHC)

Calculating The Intrinsic Value Of Graham Holdings Company (NYSE:GHC)

How far off is Graham Holdings Company ( NYSE:GHC ) from its intrinsic value? Using the most recent financial data...

Shareholder Returns

GHCUS Consumer ServicesUS Market
7D2.1%-2.0%0.1%
1Y45.7%-53.5%35.3%

Return vs Industry: GHC exceeded the US Consumer Services industry which returned -53.5% over the past year.

Return vs Market: GHC exceeded the US Market which returned 35.3% over the past year.

Price Volatility

Is GHC's price volatile compared to industry and market?
GHC volatility
GHC Beta1.15
Industry Beta0.90
Market Beta1

Stable Share Price: GHC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: GHC's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
187713,747Tim O’Shaughnessyhttps://www.ghco.com

Graham Holdings Company, through its subsidiaries, operates as a diversified education and media company worldwide. It provides test preparation services and materials; data science education, and training and healthcare simulation services; professional training and exam preparation for professional certifications and licensures; and non-academic operations support services to 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, including a business school, a higher education institution, and an online learning institution.

Graham Holdings Fundamentals Summary

How do Graham Holdings's earnings and revenue compare to its market cap?
GHC fundamental statistics
Market CapUS$2.99b
Earnings (TTM)US$539.54m
Revenue (TTM)US$3.02b

5.5x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GHC income statement (TTM)
RevenueUS$3.02b
Cost of RevenueUS$1.98b
Gross ProfitUS$1.04b
ExpensesUS$496.01m
EarningsUS$539.54m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)107.88
Gross Margin34.32%
Net Profit Margin17.88%
Debt/Equity Ratio13.4%

How did GHC perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

5%

Payout Ratio

Does GHC pay a reliable dividends?

See GHC dividend history and benchmarks
When do you need to buy GHC by to receive an upcoming dividend?
Graham Holdings dividend dates
Ex Dividend DateOct 14 2021
Dividend Pay DateNov 04 2021
Days until Ex dividend18 days
Days until Dividend pay date39 days

Does GHC pay a reliable dividends?

See GHC dividend history and benchmarks

Valuation

Is Graham Holdings undervalued compared to its fair value and its price relative to the market?

28.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GHC ($597.29) is trading below our estimate of fair value ($831.26)

Significantly Below Fair Value: GHC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GHC is good value based on its PE Ratio (5.5x) compared to the US Consumer Services industry average (14.6x).

PE vs Market: GHC is good value based on its PE Ratio (5.5x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GHC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GHC is good value based on its PB Ratio (0.8x) compared to the US Consumer Services industry average (1.9x).


Future Growth

How is Graham Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

5.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if GHC's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if GHC's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GHC's revenue (5.9% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: GHC's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GHC's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Graham Holdings performed over the past 5 years?

20.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GHC has a large one-off gain of $498.3M impacting its June 30 2021 financial results.

Growing Profit Margin: GHC's current net profit margins (17.9%) are higher than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: GHC has become profitable over the past 5 years, growing earnings by 20.6% per year.

Accelerating Growth: GHC's earnings growth over the past year (211%) exceeds its 5-year average (20.6% per year).

Earnings vs Industry: GHC earnings growth over the past year (211%) exceeded the Consumer Services industry 35.4%.


Return on Equity

High ROE: GHC's Return on Equity (13.6%) is considered low.


Financial Health

How is Graham Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: GHC's short term assets ($1.6B) exceed its short term liabilities ($902.6M).

Long Term Liabilities: GHC's short term assets ($1.6B) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: GHC's debt to equity ratio (13.4%) is considered satisfactory.

Reducing Debt: GHC's debt to equity ratio has reduced from 16.2% to 13.4% over the past 5 years.

Debt Coverage: GHC's debt is well covered by operating cash flow (30.3%).

Interest Coverage: GHC's interest payments on its debt are well covered by EBIT (7.3x coverage).


Balance Sheet


Dividend

What is Graham Holdings's current dividend yield, its reliability and sustainability?

1.01%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 26 2021Ex Dividend DateOct 14 2021Dividend Pay DateNov 04 202121 days from Ex DividendBuy in the next 18 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: GHC's dividend (1.01%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: GHC's dividend (1.01%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

Stable Dividend: GHC's dividend payments have been volatile in the past 10 years.

Growing Dividend: GHC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (5.5%), GHC's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Tim O’Shaughnessy (40 yo)

5.83yrs

Tenure

US$9,652,756

Compensation

Mr. Timothy J. O’Shaughnessy, also known as Tim, has been the President, Chief Executive Officer f Graham Holdings Company since November 3, 2014 and serves as itsoversees investments and acquisitions and...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD9.65M) is above average for companies of similar size in the US market ($USD5.28M).

Compensation vs Earnings: Tim's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: GHC's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: GHC's board of directors are seasoned and experienced ( 10.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Graham Holdings Company's employee growth, exchange listings and data sources


Key Information

  • Name: Graham Holdings Company
  • Ticker: GHC
  • Exchange: NYSE
  • Founded: 1877
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$2.987b
  • Shares outstanding: 5.00m
  • Website: https://www.ghco.com

Number of Employees


Location

  • Graham Holdings Company
  • 1300 North 17th Street
  • 17th Floor
  • Arlington
  • Virginia
  • 22209
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 22:09
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.