📊 GHC Key Takeaways
Is GHC a Good Investment? Thesis Analysis
Graham Holdings demonstrates stable operational performance with solid free cash flow generation ($275.3M) and strong balance sheet metrics (0.15x debt/equity, 12.2x interest coverage), but profitability metrics reveal modest growth with net income advancing only 0.6% YoY and diluted EPS declining 59.3% YoY. The company's 6.0% net margin and 3.5% ROA are adequate but uninspiring, suggesting limited earnings power despite $4.9B in revenues.
Why Buy GHC? Key Strengths
- Strong liquidity position with 1.75x current ratio and $267M cash reserves
- Conservative leverage (0.15x debt/equity) and excellent interest coverage (12.2x) provide financial flexibility
- Solid free cash flow generation ($275.3M) covers 376% of capital expenditures, indicating sustainable dividend/reinvestment capacity
- Diversified educational services platform with $8.4B asset base
GHC Investment Risks to Consider
- Stagnant earnings growth with net income rising only 0.6% YoY despite 2.5% revenue growth, indicating margin pressure
- Significant diluted EPS decline of 59.3% YoY suggests share count expansion or one-time charges negatively impacting per-share value
- Modest profitability ratios (6.0% net margin, 3.5% ROA, 6.1% ROE) indicate limited operational efficiency and competitive positioning
- Muted organic growth trajectory in core business lines
Key Metrics to Watch
- Operating margin expansion/contraction to assess pricing power and cost discipline
- Free cash flow sustainability and conversion efficiency amid capital deployment decisions
- Share dilution trends and impact on future earnings per share accretion
- Revenue growth acceleration in core educational services segments
GHC Financial Metrics
💡 AI Analyst Insight
Graham Holdings Co presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
GHC Profitability Ratios
GHC vs Default Sector
How Graham Holdings Co compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is GHC Overvalued or Undervalued?
Based on fundamental analysis, Graham Holdings Co has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
GHC Balance Sheet & Liquidity
GHC 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Graham Holdings Co's revenue has grown significantly by 54% over the 5-year period, indicating strong business expansion. The most recent EPS of $43.82 reflects profitable operations.
GHC Growth Metrics (YoY)
GHC Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.2B | $72.5M | $16.42 |
| Q2 2025 | $1.2B | -$21.0M | $-4.79 |
| Q1 2025 | $1.2B | $23.9M | $5.45 |
| Q3 2024 | $1.1B | -$23.0M | $-5.02 |
| Q2 2024 | $1.1B | -$21.0M | $-4.79 |
| Q1 2024 | $1.0B | $52.3M | $10.88 |
| Q3 2023 | $1.0B | -$23.0M | $-5.02 |
| Q2 2023 | $933.3M | $28.1M | $5.74 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
GHC Capital Allocation
GHC SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Graham Holdings Co (CIK: 0000104889)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GHC
What is the AI rating for GHC?
Graham Holdings Co (GHC) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are GHC's key strengths?
Claude: Strong liquidity position with 1.75x current ratio and $267M cash reserves. Conservative leverage (0.15x debt/equity) and excellent interest coverage (12.2x) provide financial flexibility.
What are the risks of investing in GHC?
Claude: Stagnant earnings growth with net income rising only 0.6% YoY despite 2.5% revenue growth, indicating margin pressure. Significant diluted EPS decline of 59.3% YoY suggests share count expansion or one-time charges negatively impacting per-share value.
What is GHC's revenue and growth?
Graham Holdings Co reported revenue of $4.9B.
Does GHC pay dividends?
Graham Holdings Co pays dividends, with $0.4M distributed to shareholders in the trailing twelve months.
Where can I find GHC SEC filings?
Official SEC filings for Graham Holdings Co (CIK: 0000104889) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GHC's EPS?
Graham Holdings Co has a diluted EPS of $66.47.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GHC a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, Graham Holdings Co has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GHC stock overvalued or undervalued?
Valuation metrics for GHC: ROE of 6.1% (sector avg: 15%), net margin of 6.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy GHC stock in 2026?
Our dual AI analysis gives Graham Holdings Co a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GHC's free cash flow?
Graham Holdings Co's operating cash flow is $347.2M, with capital expenditures of $71.9M. FCF margin is 5.6%.
How does GHC compare to other Default stocks?
Vs Default sector averages: Net margin 6.0% (avg: 12%), ROE 6.1% (avg: 15%), current ratio 1.75 (avg: 1.8).