MH

McGraw Hill, Inc.

Fundamental data last updated:November 1, 2026

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company profile

SECTOR

Consumer Defensive

industry

Education & Training Services

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

McGraw Hill, Inc., doing business as McGraw Hill, provides information solutions for K-12, higher education, and professional markets in the United States and internationally. It operates through K-12, Higher Education, Global Professional, and International segments. The K-12 segment provides core, supplemental, and intervention curricula to support the needs of the K-12 schools. It sells blended digital and print learning solutions directly to school districts across the United States. The Higher Education segment offers students, instructors, and institutions with adaptive digital learning solutions and content, and instructional materials. Its solutions are used by students enrolled in non-profit colleges and universities, as well as for-profit institutions. This segment sells its higher education solutions to online retailers and distribution partners, as well as sells directly to student through its proprietary e-commerce platform. The Global Professional segment provides students, institutions, and professionals with comprehensive medical and engineering learning solutions. This segment sells digital learning solutions and print materials accessible through a range of mediums for learners and customers. The International segment offers digital and print solutions in approximately 100 countries and 80 languages outside of the United States. This segment, through its distribution network, serve the needs of learners and educators with K-12 and higher education solutions. McGraw Hill, Inc. was formerly known as Mav Holding Corporation and changed its name to McGraw Hill, Inc. in October 2022. The company was founded in 1888 and is headquartered in Columbus, Ohio.

 


VALUATION

P/E

-30.24

Market Cap ($M USD)

$2.24B

Forward P/E

5.92

PEG

0.01

PRICE TO SALES

1.06

PRICE TO BOOK

2.78

EV / EBITDA

6.46

5-Year Average P/E

Free Cash Flow Yield

14.14%

DCF Value

$67.26

Graham Number

N/A

Price to FCF

7.07

EV to FCF

13.94

Earnings Yield

-3.31%

FCF Yield

14.14%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$0.39

Next Year EPS Growth Estimate

$1.98

Next Year Revenue Growth Estimate

$2.42B

Return on Equity (ROE)

-13.36%

FREE CASH FLOW

Operating Margin

14.72%

Debt-to-Equity

11.62

Piotroski F-Score

6

Altman Z-Score

0.49

Return on Invested Capital (ROIC)

7.13%

Current Ratio

0.83

Quick Ratio

0.70

Net Debt to EBITDA

3.19

Interest Coverage

1.38

Gross Profit margin

80.84%

FCF PER SHARE

$1.73

REVENUE PER SHARE

$11.50

Gainseekers Quantitative Analysis

Summary

The market appears to be significantly undervaluing MH McGraw Hill, Inc. relative to its DCF value, with the stock trading well below this intrinsic measure. The Forward P/E of 5.93 suggests a potential for growth, yet the negative Earnings Yield and Altman Z-score of 0.48 raise red flags about financial distress and profitability. Despite these concerns, the company’s valuation metrics indicate a potential mispricing, especially given the massive discrepancy between the current price and its DCF value. This could be an opportunity for deep value investors willing to navigate the risks.

AI Exposure / Tech Reliance

Operating within the Education & Training Services industry, MH McGraw Hill is well-positioned to leverage AI advancements. The sector's increasing reliance on digital platforms and adaptive learning technologies aligns with AI-driven innovations. This positioning could enhance their product offerings and operational efficiencies.

The Bull Case

For the value or GARP investor, MH McGraw Hill presents a compelling case. The ROIC of 7.13% and a robust FCF Yield of 14.12% highlight efficient capital use and strong cash generation. With a Piotroski F-Score of 6, the company shows moderate financial strength, while an Operating Margin of 14.72% underscores its pricing power. These metrics suggest a company capable of delivering shareholder value through disciplined management and strategic capital allocation.

The Bear Case

However, the bear case cannot be ignored. The negative EPS and Return on Equity of -13.36% indicate profitability challenges. A Debt/Equity ratio of 11.62 raises concerns about financial leverage, while the Altman Z-score suggests potential distress. The Price/Book ratio of 2.79 and Price/Sales of 1.06 may not justify the risks, especially with the stock trading significantly below its 52-week high, indicating potential market skepticism.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$19.60

Institutional Ownership %

1-Year Beta

-1.35

Insider Buying % (6 Mo)

Distance to 52-Week High

53.32%

Distance to 52-Week Low

8.90%

EARNINGS SURPRISE %

168.71%

50-DAY SMA

$12.84

200-DAY SMA

$13.97

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.