Graham Holdings (GHC) AI Stock Analysis

• Market Cap: $4.05B
• Dividend Yield: 0.74%
• Average Volume (3M): 17.39K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 1.11
• Revenue Growth: 8.52%
• EPS Growth: 281.17%
• Country: US
• Employees: 19,900
• Sector: Consumer Defensive
• Sector Strength: 73
• Industry: Education
• EPS (TTM): 164.93
• Shares Outstanding: 3,375,982
• 10 Day Avg. Volume: 21,099
• 30 Day Avg. Volume: 17,388
• PEG Ratio: 0.02
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.85
• Price to Cash Flow (P/CF): 8.70
• P/FCF Ratio: 5.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Graham Holdings achieves a solid score driven by robust financial performance and positive technical momentum. While the company manages its financials prudently, the moderate asset growth and revenue volatility require attention. The fair valuation supports the overall stability, with the recent board appointment providing strategic advantages, albeit not included in the core score.

Graham Holdings Business Overview & Revenue Model

Company Description

Graham Holdings Company (GHC) is a diversified conglomerate with operations spanning several sectors including education, media, and manufacturing. The company is known for its ownership of educational services through Kaplan, a prominent provider of educational and career services. Additionally, Graham Holdings holds interests in television broadcasting, through a number of local TV stations, and in the manufacturing sector, which includes industrial and commercial facilities.

How the Company Makes Money

Graham Holdings generates revenue through its diverse portfolio of businesses. The education sector, primarily represented by Kaplan, contributes significantly by offering a range of services such as test preparation, higher education, and professional training. The company's media segment earns money from advertising and subscription revenue generated by its television broadcasting operations. Additionally, Graham Holdings' manufacturing and other businesses diversify its revenue streams, contributing through the sale of products and services across different industries. Strategic acquisitions and investments also play a role in expanding its revenue base.

Graham Holdings Financial Statement Overview

Summary

Graham Holdings shows mixed financial performance with strong profitability and operational efficiency. The company has a solid equity foundation and prudent debt management. However, revenue volatility and moderate asset growth pose challenges. Effective cash generation supports reinvestment capacity.

Income Statement

The income statement displays notable fluctuations with a strong rebound in net income and EBIT in 2024 compared to previous years. Despite a temporary decline in revenue in 2024, the net profit margin has improved significantly, indicating better profitability. The company's focus on cost management has contributed to higher EBIT and EBITDA margins, showcasing a robust operational efficiency. However, the volatility in revenue growth rates might indicate potential instability in sales performance.

Balance Sheet

The balance sheet reflects a strong equity base with a consistent increase in stockholders' equity over time. The debt-to-equity ratio remains manageable, indicating prudent leverage management. The company's equity ratio suggests a stable financial structure with adequate asset backing. Nonetheless, the total assets have shown only moderate growth, which might limit future expansion capabilities.

Cash Flow

Cash flow analysis shows positive trends with increasing free cash flow, indicating healthy liquidity and potential for reinvestment. The operating cash flow to net income ratio highlights efficient cash conversion, although free cash flow growth has been inconsistent across the years. The ability to generate cash is evident, yet fluctuating financing cash flows suggest variability in capital management strategies.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.79B	4.41B	3.92B	3.19B	2.89B
	Gross Profit
1.47B	1.31B	1.27B	1.07B	977.01M
	EBIT
215.50M	69.39M	444.72M	273.42M	414.96M
	EBITDA
1.45B	571.50M	375.46M	687.24M	667.04M
	Net Income Common Stockholders
724.63M	205.29M	67.08M	352.07M	300.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.12B	866.92M	791.73M	970.33M	1.00B
	Total Assets
7.68B	7.19B	6.58B	7.43B	6.44B
	Total Debt
1.17B	1.25B	1.19B	1.15B	1.03B
	Net Debt
908.46M	1.08B	1.02B	1.00B	614.21M
	Total Liabilities
3.35B	3.12B	2.83B	3.01B	2.68B
	Stockholders Equity
4.26B	3.98B	3.73B	4.40B	3.76B
Cash Flow		Free Cash Flow
324.08M	166.43M	152.92M	39.89M	141.07M
	Operating Cash Flow
406.99M	259.88M	235.60M	202.43M	210.66M
	Investing Cash Flow
-62.33M	-152.97M	-184.07M	-494.63M	199.37M
	Financing Cash Flow
-240.97M	-99.83M	-18.11M	31.03M	-204.00M

Graham Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 934.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GHC, the sentiment is Neutral. The current price of 934.33 is below the 20-day moving average (MA) of 952.40, above the 50-day MA of 919.14, and above the 200-day MA of 825.44, indicating a neutral trend. The MACD of 7.21 indicates Positive momentum. The RSI at 47.12 is Neutral, neither overbought nor oversold. The STOCH value of 40.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GHC.

Graham Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWSA	74 Outperform	$16.60B	38.57	5.23%	0.71%	-1.51%	82.74%
EDU	74 Outperform	$8.03B	20.88	10.40%	―	34.42%	28.54%
GHC	72 Outperform	$4.05B	5.72	17.48%	0.74%	8.52%	281.17%
NYT	69 Neutral	$7.74B	26.73	15.92%	1.10%	6.59%	26.68%
Sector *	63 Neutral	$20.85B	13.27	-10.88%	7.48%	1.13%	11.50%
SCHL	59 Neutral	$567.36M	―	-0.42%	3.73%	-3.89%	-106.78%
GCI	48 Neutral	$521.69M	―	-11.19%	―	-5.79%	-10.12%

Graham Holdings Corporate Events

Graham Holdings Welcomes Jack Markell Back to Board

Graham Holdings Company announced that Jack A. Markell has been elected to its Board of Directors on February 25, 2025. Markell, who previously served on the Board from May 2017 to December 2021, brings extensive experience from his roles as a former US Ambassador and Governor of Delaware. His return is expected to strengthen the Board with his strategic insights and leadership experience, as highlighted by CEO Timothy J. O’Shaughnessy.