NYSE:GHC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet and fair value.

Risks

  • Graham Holdings is not covered by any analysts.

Similar Companies

Share Price & News

How has Graham Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.5%

NYSE:GHC

1.8%

US Consumer Services

0.9%

US Market


1 Year Return

26.0%

NYSE:GHC

10.9%

US Consumer Services

0.3%

US Market

GHC outperformed the Consumer Services industry which returned 7.6% over the past year.

GHC outperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

GHCIndustryMarket
7 Day1.5%1.8%0.9%
30 Day-1.8%2.2%-1.9%
90 Day3.6%9.5%1.6%
1 Year27.0%26.0%14.8%10.9%2.6%0.3%
3 Year40.0%36.3%110.6%98.7%41.0%31.8%
5 Year71.6%-1.3%139.0%114.6%55.2%38.0%

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

Valuation

Is Graham Holdings undervalued based on future cash flows and its price relative to the stock market?

11.87x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Graham Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Graham Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Graham Holdings is good value based on earnings compared to the US Consumer Services industry average.

Graham Holdings is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Graham Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

Graham Holdings is good value based on assets compared to the US Consumer Services industry average.


Next Steps

Future Growth

How is Graham Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Graham Holdings is high growth as no revenue estimate data is available.

Graham Holdings's earnings are expected to grow by 12.1% yearly, however this is not considered high growth (20% yearly).

Unable to compare Graham Holdings's revenue growth to the United States of America market average as no estimate data is available.

Graham Holdings's earnings growth is positive but not above the United States of America market average.

Graham Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Graham Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Graham Holdings performed over the past 5 years?

-9.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Graham Holdings's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Graham Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Graham Holdings's 1-year earnings growth is negative, it can't be compared to the US Consumer Services industry average.


Return on Equity

Graham Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Graham Holdings used its assets more efficiently than the US Consumer Services industry average last year based on Return on Assets.


Return on Capital Employed

Graham Holdings has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Graham Holdings's financial position?


Financial Position Analysis

Graham Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Graham Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Graham Holdings's level of debt (18.3%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (15.9% vs 18.3% today).

Debt is well covered by operating cash flow (35.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 15.5x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.7x debt.


Next Steps

Dividend

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

0.78%

Current Dividend Yield


Dividend Yield and Payments Analysis

Graham Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Graham Holdings's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Graham Holdings is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

Graham Holdings is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Graham Holdings's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Graham Holdings's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Tim O’Shaughnessy (38yo)

3.8yrs

Tenure

US$2,983,209

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

Tim's remuneration is lower than average for companies of similar size in United States of America.

Tim's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

3.8yrs

Average Tenure

49yo

Average Age

The tenure for the Graham Holdings management team is about average.


Board Age and Tenure

9.0yrs

Average Tenure

62yo

Average Age

The tenure for the Graham Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$637,94511 Oct 18
Katharine Weymouth
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,100
Max PriceUS$579.95
SellUS$413,19625 Sep 18
Katharine Weymouth
EntityIndividual
Role
Member of the Board of Directors
Director
Shares700
Max PriceUS$590.28

Ownership Breakdown


Management Team

  • Andy Rosen (58yo)

    Executive Vice President

    • Tenure: 5.3yrs
    • Compensation: US$4.41m
  • Wally Cooney (56yo)

    Senior VP of Finance & CFO

    • Tenure: 2.6yrs
    • Compensation: US$1.75m
  • Nicole Maddrey (54yo)

    Senior VP

    • Tenure: 4.3yrs
    • Compensation: US$1.63m
  • Pinkie Mayfield

    VP of Corporate Affairs & Special Assistant to the Chairman

    • Tenure: 4.6yrs
  • Tim O’Shaughnessy (38yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$2.98m
  • Kristine Coratti

    Vice President of Communications

    • Tenure: 4.8yrs
  • Marcel Snyman (44yo)

    VP & Chief Accounting Officer

    • Tenure: 1.6yrs
  • Jake Maas (42yo)

    Senior VP of Planning & Development

    • Tenure: 3.8yrs
    • Compensation: US$1.43m
  • Shailesh Prakash

    Chief Information Officer & Executive VP

    • Tenure: 0.0yrs
  • Scot Gillespie

    CTO & VP

    • Tenure: 2.6yrs

Board Members

  • Rick Wagoner (66yo)

    Director

    • Tenure: 9.2yrs
    • Compensation: US$178.00k
  • Don Graham (74yo)

    Chairman of the Board

    • Tenure: 25.9yrs
    • Compensation: US$362.17k
  • Anne Mulcahy (67yo)

    Director

    • Tenure: 11.6yrs
    • Compensation: US$170.00k
  • Tom Gayner (58yo)

    Director

    • Tenure: 12.6yrs
    • Compensation: US$190.00k
  • Lee Bollinger (72yo)

    Director

    • Tenure: 12.3yrs
    • Compensation: US$150.00k
  • Jack Markell (58yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$150.00k
  • Larry Thompson (74yo)

    Director

    • Tenure: 8.2yrs
    • Compensation: US$150.00k
  • Chris Davis (54yo)

    Lead Director

    • Tenure: 8.3yrs
    • Compensation: US$190.00k
  • Katharine Weymouth (52yo)

    Director

    • Tenure: 8.9yrs
    • Compensation: US$150.00k
  • Tim O’Shaughnessy (38yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$2.98m

Company Information

Graham Holdings Company's company bio, 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$3.804b
  • Shares outstanding: 5.31m
  • Website: https://www.ghco.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GHCNYSE (New York Stock Exchange)YesClass B Common SharesUSUSDOct 1971
WPOBDB (Deutsche Boerse AG)YesClass B Common SharesDEEUROct 1971

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 23:43
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.