Graham Holdings Company, through its subsidiaries, operates as a diversified education and media company worldwide. More Details
Undervalued with excellent balance sheet.
Share Price & News
How has Graham Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GHC has not had significant price volatility in the past 3 months.
7 Day Return
US Consumer Services
1 Year Return
US Consumer Services
Return vs Industry: GHC underperformed the US Consumer Services industry which returned 50.2% over the past year.
Return vs Market: GHC underperformed the US Market which returned 19.9% over the past year.
Price Volatility Vs. Market
How volatile is Graham Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StGraham Holdings Company (NYSE:GHC) Will Pay A US$1.45 Dividend In Four Days
3 weeks ago | Simply Wall StHere's What We Think About Graham Holdings' (NYSE:GHC) CEO Pay
1 month ago | Simply Wall StIs Graham Holdings (NYSE:GHC) Using Too Much Debt?
Is Graham Holdings undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GHC ($410.01) is trading below our estimate of fair value ($1035.62)
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 (12.4x) compared to the US Consumer Services industry average (42.6x).
PE vs Market: GHC is good value based on its PE Ratio (12.4x) compared to the US market (19x).
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 (0.7x) compared to the US Consumer Services industry average (2.7x).
How is Graham Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Forecasted Consumer Services industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Graham Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
- Examine whether Graham Holdings is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Graham Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Consumer Services industry.
How has Graham Holdings performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GHC has high quality earnings.
Growing Profit Margin: GHC's current net profit margins (6%) are lower than last year (11.4%).
Past Earnings Growth Analysis
Earnings Trend: GHC's earnings have grown significantly by 23.6% per year over the past 5 years.
Accelerating Growth: GHC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: GHC had negative earnings growth (-45.4%) over the past year, making it difficult to compare to the Consumer Services industry average (7.9%).
Return on Equity
High ROE: GHC's Return on Equity (5.4%) is considered low.
How is Graham Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: GHC's short term assets ($1.4B) exceed its short term liabilities ($818.1M).
Long Term Liabilities: GHC's short term assets ($1.4B) do not cover its long term liabilities ($1.6B).
Debt to Equity History and Analysis
Debt Level: GHC's debt to equity ratio (16.8%) is considered satisfactory.
Reducing Debt: GHC's debt to equity ratio has reduced from 29.5% to 16.8% over the past 5 years.
Debt Coverage: GHC's debt is well covered by operating cash flow (56.1%).
Interest Coverage: GHC's interest payments on its debt are well covered by EBIT (11x coverage).
What is Graham Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GHC's dividend (1.41%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).
High Dividend: GHC's dividend (1.41%) is low compared to the top 25% of dividend payers in the US market (4.66%).
Stability and Growth of Payments
Stable Dividend: GHC's dividend payments have been volatile in the past 10 years.
Growing Dividend: GHC's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (17.2%), GHC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Tim O’Shaughnessy (39 yo)
Mr. Timothy J. O’Shaughnessy, also known as Tim, has been the President, Chief Executive Officer f Graham Holdings Company since November 3, 2014 and serves as itsoversees investments and acquisitions and ...
CEO Compensation Analysis
Compensation vs Market: Tim's total compensation ($USD1.47M) is below average for companies of similar size in the US market ($USD4.44M).
Compensation vs Earnings: Tim's compensation has been consistent with company performance over the past year.
|Senior VP of Finance & CFO||3.5yrs||US$1.51m||0.040% |
|Senior VP||5.5yrs||US$1.32m||0.052% |
|VP & Chief Human Resources Officer||6.08yrs||US$1.23m||0.033% |
|Executive Vice President||6.5yrs||US$8.18m||0.54% |
|VP & Chief Accounting Officer||2.75yrs||no data||no data|
|CTO & VP||3.75yrs||no data||no data|
|Chief Information Officer & Executive VP||no data||no data||no data|
|VP of Corporate Affairs & Chief Communications Officer||5.75yrs||no data||no data|
|Chief Marketing Officer||1.92yrs||no data||no data|
|Head of Video & Senior Editor||no data||no data||no data|
|Head of WP Brandstudio||5.08yrs||no data||no data|
Experienced Management: GHC's management team is seasoned and experienced (5 years average tenure).
|Independent Director||10.33yrs||US$174.00k||0.020% |
|Chairman of the Board||27.08yrs||US$362.17k||11.09% |
|Independent Director||12.75yrs||US$170.00k||0.0040% |
|Independent Director||13.75yrs||US$190.00k||0.10% |
|Independent Director||13.42yrs||US$150.00k||0.023% |
|Independent Director||3.42yrs||US$170.00k||0.0022% |
|Independent Director||9.33yrs||US$150.00k||0.0015% |
|Lead Independent Director||9.42yrs||US$190.00k||0.099% |
|Independent Director||10.08yrs||US$150.00k||0.050% |
Experienced Board: GHC's board of directors are seasoned and experienced ( 10.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: GHC insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Graham Holdings Company's company bio, employee growth, exchange listings and data sources
- Name: Graham Holdings Company
- Ticker: GHC
- Exchange: NYSE
- Founded: 1877
- Industry: Education Services
- Sector: Consumer Services
- Market Cap: US$2.074b
- Shares outstanding: 5.06m
- Website: https://www.ghco.com
Number of Employees
- Graham Holdings Company
- 1300 North 17th Street
- 17th Floor
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|GHC||NYSE (New York Stock Exchange)||Yes||Class B Common Shares||US||USD||Oct 1971|
|WPOB||DB (Deutsche Boerse AG)||Yes||Class B Common Shares||DE||EUR||Oct 1971|
Graham Holdings Company, through its subsidiaries, operates as a diversified education and media company worldwide. It provides test preparation services and materials, as well as data science education, a ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/10/19 06:28|
|End of Day Share Price||2020/10/16 00:00|
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.