Graham Holdings Co

Real Estate
Other Consumer Services
www.ghco.com

Earnings Score
Moat Score
Safety Score

Market Cap $4.10B
PE 18
Debt $765.19M
Cash $282.22M
EV $4.58B
FCF $258.05M

Earnings

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Sales & Net Margins

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Earnings	$227.53M
EBIT	$339.71M
ROE	6%
ROA	5%
FCF	$258.05M
Equity	$4.03B
Growth Stability	21%
PE	18.01
PEG	-1.14
PB	1.02
P/FCF	15.88
P/S	0.87
Price/Cash	0.07
Debt/Equity	0.19
Debt/FCF	2.97
Net Margins	5%
Op. Margins	7%
Earnings CAGR	-4%
Sales Growth YoY	9%
Sales Growth QoQ	2%
Sales CAGR	8%
FCF CAGR	-0%
Equity CAGR	6%
Earnings Stability	0.03
Earnings Growth YoY	-414%
Earnings Growth QoQ	-444%
Earnings CAGR 5Y	-16%

Sales CAGR 5Y	13%
FCF CAGR 5Y	9%
Equity CAGR 5Y	4%
Earnings CAGR 3Y	15%
Sales CAGR 3Y	15%
FCF CAGR 3Y	66%
Equity CAGR 3Y	-4%
Market Cap	$4.10B
Revenue	$4.71B
Dividend Yield	1%
Payout Ratio	13%
Assets	$7.42B
Total Debt	$765.19M
Cash	$282.22M
Shares Outstanding	4.35M
EV	4.58B
Earnings Score	6%
Moat Score	67%
Safety Score	63%
Final Score	45%
Working Capital	752.77M
Current Ratio	1.57
Shares Growth 3y	-4%
Equity Growth QoQ	1%
Equity Growth YoY	9%

Assets & ROA

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Stockholders Equity & ROE

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Graham Holdings Co. is a diversified education and media company made up of subsidiaries. Firm operations include educational services; television broadcasting; online, print, and local news; home health and hospice care; and manufacturing. The Company segments into the following seven reportable segments: Kaplan International, Higher Education, Supplemental Education, Television Broadcasting, Manufacturing, Healthcare, and Automotive. The majority of revenue comes from the Kaplan International segment, which includes higher education, test preparation, language instruction, and professional training. A large portion of company revenue also comes from the television broadcasting segment through advertising.

SEC Filings

Direct access to Graham Holdings Co (GHC) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Graham Holdings Co compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Graham Holdings Co compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -4%

Stability 3%

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Graham Holdings Co Discounted Cash Flow

Fully customizable DCF calculator online for Graham Holdings Co.

Years

Calculation mode

= $2.5B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$258M	$258M	$257M	$257M	$256M	$256M	$255M	$255M	$254M	$254M	$253M	$2.5B
DCF		$234M	$212M	$193M	$175M	$159M	$144M	$131M	$119M	$108M	$98M	$976M
Value	$2.5B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	37%	-4%	7%	12%	10%	11%	10%	11%	2%	5%	5%
ROA	-	-2%	7%	4%	7%	7%	6%	6%	2%	4%	5%
ROE	-	-4%	7%	10%	9%	10%	8%	8%	2%	5%	6%

Bad Net Margins (4.93%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-6.44	2.53	2.38	2.53	7.16	3.63	16.73	4.75	4.88	2.97
Debt over Equity	0.14	0.16	0.2	0.17	0.16	0.15	0.14	0.15	0.19	0.2	0.19
Growth Stability	-	-	-	67%	100%	100%	100%	100%	21%	86%	21%

Neutral Debt/FCF ratio (2.97)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.19)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (21%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-27%	-4%	4%	4%	9%	-1%	10%	23%	12%	13%
Earnings YoY growth	-	-108%	-266%	79%	-11%	21%	-8%	17%	-81%	206%	-16%
Equity YoY growth	-	-21%	-2%	19%	0%	14%	13%	17%	-15%	7%	4%
FCF YoY growth	-	-146%	-414%	7%	-9%	-62%	97%	-72%	283%	9%	9%