McGraw Hill, Inc.

MH
About the company

McGraw Hill, Inc., doing business as McGraw Hill, provides education solutions for K-12, higher education, and professional learning 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.

Country: United StatesPrice: $11.60Market Cap: $2.2B

Investment snapshot

0%positive consensus
Scored 1d ago

Positive

0

BUY / PASS

Neutral / negative

3 / 13

NEUTRAL / FAIL

Median fair value

$15.39

+32.7% vs price

Models with upside

4 / 17

Positive margin of safety

Strongest signal

8 of 10 pass — Lynch and Oshaughnessy object

Key risk

No clean pass — all 8 investors flag at least one growth criterion

Framework analysis

VerdictMeaning
BUYPositive purchase signal: the framework's buy requirements are met.
PASSThe company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRALNeither a positive nor negative conclusion. It does not mean to hold an existing position.
FAILThe company does not clear the framework's requirements.
RankedRanked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.

Current investor scores use trailing 12-month flows and the latest balance sheet where supported. Multi-year and EPS tests retain annual history; each framework shows its financial basis below. Intrinsic values use annual financials.

MetricGraham

Defensive Value

Buffett

Quality Compounder

Lynch

GARP

Greenblatt

Magic Formula

Piotroski

F-Score

Dreman

Contrarian Value

Munger

Quality Focus

Pabrai

Dhandho Framework

Akre

Three-Legged Stool

Marks

Risk-Aware Value

Ackman

Activist Value

Templeton

Global Bargain Hunter

Sleep

Scale Economies Shared

Asness

Systematic Factors

Neff

Low-P/E Total Return

Schloss

Asset-Value Discipline

O'Shaughnessy

Systematic Factor Composite

VerdictFAILFAILFAILNot rankedNEUTRALFAILFAILFAILFAILFAILFAILFAILFAILNEUTRALFAILFAILNEUTRAL
Score
AnalysisChecking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…Checking access…
Intrinsic Value (annual)N/AN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Margin of Safety-187.8%+39.9%N/A-14.1%N/AN/A+23.2%+26.0%N/AN/A+41.5%N/AN/AN/AN/AN/AN/A
Financial Basis

TTM ended 2026-09-30 · Balance sheet at 2026-09-30 · Annual history · FY 2025

Latest source filing: 2026-11-05

Score computed: 2026-11-14

Annual history · FY 2025

Latest source filing: 2026-06-11

Score computed: 2026-11-14

Annual history · FY 2025 · Balance sheet at 2026-09-30 · TTM ended 2026-09-30

Latest source filing: 2026-11-05

Score computed: 2026-11-14

TTM ended 2026-09-30

Latest source filing: 2026-11-05

Score computed: 2026-11-14

Annual history · FY 2025

Latest source filing: 2026-06-11

Score computed: 2026-11-14

Annual history · FY 2025 · TTM ended 2026-09-30 · Balance sheet at 2026-09-30 · Market data at 2026-11-01

Latest source filing: 2026-11-05

Score computed: 2026-11-14

Qualitative assessment · Annual history · FY 2025 · TTM ended 2026-09-30 · Balance sheet at 2026-09-30

Latest source filing: 2026-11-05

Score computed: 2026-11-14

Qualitative assessment · Annual history · FY 2025

Latest source filing: 2026-06-11

Score computed: 2026-11-14

Annual history · FY 2025 · Qualitative assessment · TTM ended 2026-09-30 · Balance sheet at 2026-09-30

Latest source filing: 2026-11-05

Score computed: 2026-11-14

Annual history · FY 2025 · Qualitative assessment

Latest source filing: 2026-06-11

Score computed: 2026-11-14

Annual history · FY 2025 · TTM ended 2026-09-30 · Balance sheet at 2026-09-30 · Market data at 2026-11-01

Latest source filing: 2026-11-05

Score computed: 2026-11-14

Annual history · FY 2025 · Price history 2025-07-01–2026-11-01 · Balance sheet at 2026-09-30

Latest source filing: 2026-11-05

Score computed: 2026-11-14

Annual history · FY 2025 · Qualitative assessment

Latest source filing: 2026-06-11

Score computed: 2026-11-14

TTM ended 2026-09-30 · Balance sheet at 2026-09-30 · Price history 2025-07-01–2026-11-01 · Annual history · FY 2025

Latest source filing: 2026-11-05

Score computed: 2026-11-14

Annual history · FY 2025 · TTM ended 2026-09-30

Latest source filing: 2026-11-05

Score computed: 2026-11-14

Annual history · FY 2025 · Balance sheet at 2026-09-30

Latest source filing: 2026-11-05

Score computed: 2026-11-14

TTM ended 2026-09-30 · Annual history · FY 2025 · Price history 2025-07-01–2026-11-01

Latest source filing: 2026-11-05

Score computed: 2026-11-14

Where It Passes

  • Cash Flow80% pass✓ 10✗ 2▾

    8 of 10 pass — Lynch and Oshaughnessy object

    Free Cash Flow Proxy$312.4M
    ✓BuffettPositive and growing
    FCF Positive and Growing$246.3M
    ✗LynchPositive and growing
    Operating Cash Flow$331.2M
    ✓PiotroskiCFO > 0
    (CFO / Total Assets) vs ROACFO/Assets=6.04%, ROA=0.64%
    ✓PiotroskiCFO/Assets > ROA
    Price / (CFO / Shares)6.7x
    ✓Dreman< 8x
    P/E or FCF YieldP/E=61.1x, FCF Yield=11.1%
    ✓PabraiP/E < 15 or FCF Yield > 10%
    FCF Positive3/3 years FCF positive
    ✓MarksPositive FCF in majority of recent years
    (OCF - CapEx) / Market Cap11.5%
    ✓Ackman>= 4%
    Price / FCF per Share9.0x
    ✓Ackman<= 25
    Positive Operating Cash Flow frequency3/3 years positive
    ✓SleepPositive OCF in >= 70% of available years
    Operating Cash Flow - Capital Expenditures$256.2M
    ✓Neff> $0 (app proxy for a strong fundamental case)
    (Operating cash flow - capex) / market capitalization+11.54%; #609/4519 (top 13.5%)
    ✗OshaughnessyTop 10% of eligible cross-section
  • Valuation models67% pass✓ 4✗ 2▾

    Models split on MH at $11.60 — fair values range $4.03–$19.84

    Graham fair value$4.03
    ✗Graham-187.8% margin vs $11.60
    Buffett fair value$19.30
    ✓Buffett+39.9% margin vs $11.60
    Greenblatt fair value$10.17
    ✗Greenblatt-14.1% margin vs $11.60
    Munger fair value$15.11
    ✓Munger+23.2% margin vs $11.60
    Pabrai fair value$15.67
    ✓Pabrai+26.0% margin vs $11.60
    Ackman fair value$19.84
    ✓Ackman+41.5% margin vs $11.60

Where It Falls Short

  • Growth0% pass✓ 1✗ 12▾

    No clean pass — all 8 investors flag at least one growth criterion

    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
    Basic earnings-growth PEG (dividends excluded)P/E 61.1x (growth N/A)
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR
    ✗Lynch15-30% (Fast Grower); > 0% to pass
    Inventory Growth vs Revenue GrowthInv: 12.1% vs Rev: 0.1%
    ✗LynchInventory growth < Revenue growth
    EPS Growth Direction$-1.16 (2023) -> $0.19 (2025)
    ✓DremanPositive over recent years
    EPS CAGR
    ✗Dreman> 5% annualized
    Positive Net Income Frequency1/3 years positive
    ✗MarksPositive net income in >= 7 of last 10 years
    3yr Median Revenue Growth3.6%
    ✗Ackman>= 5%
    Positive EPS Growth Frequency2/2 years with positive EPS growth
    ✗AckmanPositive EPS growth in >= 3 of last 5 years
    5-Year EPS CAGR
    ✗Templeton> 0% (5-year EPS CAGR)
    Revenue growth vs. gross and operating margin trendgross margin 78.6% -> 80.9%, operating margin 7.9% -> 13.2%
    ✗SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-year Revenue CAGR
    ✗SleepCAGR > 7%
    3-5 Year Diluted EPS CAGR
    ✗Neff7%-20% annualized
  • Efficiency0% pass✓ 1✗ 10▾

    No clean pass — all 8 investors flag at least one efficiency criterion

    Current Ratio0.86
    ✗Graham>= 2.0
    ROIC (3-5 yr avg)7.5%
    ✗Buffett> 10%
    ROIC - WACC-2.5%
    ✗BuffettPositive (WACC = 10%)
    EBIT / (NWC + Net Fixed Assets)N/A (invested capital <= 0)
    ✗Greenblatt> 25%
    Current Ratio Change YoY0.79 -> 0.77
    ✗PiotroskiIncreased YoY
    Revenue / Total Assets Change YoY0.36x -> 0.38x
    ✓PiotroskiImproved YoY
    Current Assets / Current Liabilities0.86
    ✗Dreman> 1.5
    Return on Invested Capital6.5%
    ✗Munger> 15%
    ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=7.0%; FY2025: ROIC=6.6%
    ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
    Reinvestment Rate x ROIC6.6% (RR=100% x ROIC=6.6%)
    ✗AkreReinvestment Rate * ROIC > 10%
    ROIC (5-year)0/2 years above 12% (latest 6.6%)
    ✗SleepROIC > 12% in a majority of years
  • Verdicts0% pass✗ 13▾

    Split decision: 13 FAIL · 3 NEUTRAL

    Overall verdict
    ✗GrahamFAIL (1/9)✗BuffettFAIL (1/9)✗LynchFAIL (0/7)•GreenblattNot ranked•PiotroskiNEUTRAL (F-Score 7)✗DremanFAIL (3/11)✗MungerFAIL (1/4)✗PabraiFAIL (1/3)✗AkreFAIL (1/6)✗MarksFAIL (1/5)✗AckmanFAIL (3/9)✗TempletonFAIL (3/8)✗SleepFAIL (2/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (1/6)✗SchlossFAIL (0/7)•OshaughnessyNEUTRAL (Not ranked)
  • Profitability6% pass✓ 6✗ 29▾

    15 of 16 flag MH's profitability — Graham, Buffett, Lynch +12 more

    Positive EPS (10 years)1/4 years positive
    ✗GrahamPositive EPS every year for 10 years
    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
    Net Income Positive (10+ years)1/4 years positive
    ✗BuffettPositive every year for 10+ years
    ROE (up to 5-year arithmetic mean)-26.0%
    ✗Buffett> 15% arithmetic mean (app rule)
    Operating Margin (10-yr trend)
    ✗BuffettStable or rising over 10 years
    Free Cash Flow Proxy$312.4M
    ✓BuffettPositive and growing
    Earnings Variance (10-yr CoV)
    ✗BuffettCoV < 0.3
    Retained Earnings Effectiveness
    ✗Buffett$1 retained -> > $1 market value created
    Basic earnings-growth PEG (dividends excluded)P/E 61.1x (growth N/A)
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR
    ✗Lynch15-30% (Fast Grower); > 0% to pass
    ROE8.4%
    ✗Lynch> 15%
    EBIT / Enterprise Value6.2%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=6.2%, ROC=N/A (invested capital <= 0)
    ✗GreenblattBoth EY > 10% and ROC > 25%
    Net Income / Total Assets0.64%
    ✓PiotroskiROA > 0
    ROA Change YoY-1.49% -> 0.64% (delta: +2.13%)
    ✓PiotroskiCurrent ROA > Prior ROA
    (CFO / Total Assets) vs ROACFO/Assets=6.04%, ROA=0.64%
    ✓PiotroskiCFO/Assets > ROA
    Gross Margin Change YoY79.9% -> 80.9%
    ✓PiotroskiImproved YoY
    Pre-Tax Income / Revenue4.0%
    ✗Dreman>= 8%
    Net Income / Shareholders' Equity8.4%
    ✗Dreman> 12%
    Margin of SafetyP/E=61.1x, P/B=3.1x
    ✗PabraiP/B < 1.5 or P/E < 15
    Return on Equity-26.0% (3-yr avg)
    ✗AkreROE > 20% (3-year avg)
    Discount to Intrinsic ValueN/A (negative normalized EPS)
    ✗Marks>= 20% below intrinsic value
    Positive Net Income Frequency1/3 years positive
    ✗MarksPositive net income in >= 7 of last 10 years
    Operating Income / Revenue13.4%
    ✗Ackman>= 15%
    Net Income / Shareholders Equity8.4%
    ✗Ackman>= 15%
    5-Year EPS CAGR
    ✗Templeton> 0% (5-year EPS CAGR)
    Operating Margin Trend7.9% (2023) -> 13.2% (2025)
    ✓TempletonNon-negative operating-margin trend over 3 years
    Revenue growth vs. gross and operating margin trendgross margin 78.6% -> 80.9%, operating margin 7.9% -> 13.2%
    ✗SleepRevenue rising; gross margin flat or falling; operating margin holding
    Net income / market capitalization+3.32%; #2267/6340 (top 35.8%)
    ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
    Gross profit / total assets+29.75%; #1448/3702 (top 39.1%)
    ✗AsnessTop 30% of eligible cross-section
    Net income / positive book equity+8.41%; #2048/5226 (top 39.2%)
    ✗AsnessTop 30% of eligible cross-section
    Negative 5-year standard deviation of ROA
    ✗AsnessTop 30% of eligible cross-section
    3-5 Year Diluted EPS CAGR
    ✗Neff7%-20% annualized
    Positive Diluted-EPS Years
    ✗Schloss>= 70% positive over 5-10 observed years (app rule)
  • Debt & Leverage8% pass✓ 1✗ 14▾

    11 of 12 flag MH's debt & leverage — Graham, Buffett, Lynch +8 more

    LT Debt vs Net Current AssetsLT Debt $2.5B vs NCA $-199.7M
    ✗GrahamLT Debt <= Net Current Assets
    Debt/Equity & Interest CoverageD/E: 3.54, IC: 1.3x
    ✗BuffettD/E < 0.5 AND Interest Coverage > 5x
    Total Debt / Equity2.88
    ✗Lynch< 0.33
    Cash - Long-term Debt$-2.3B
    ✗LynchPositive preferred
    LT Debt / Total Assets Change54.96% -> 46.68%
    ✓PiotroskiDecreased YoY
    Current Assets / Current Liabilities0.86
    ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)
    Total Debt / Shareholders' Equity2.88
    ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x
    Debt Levels2.88
    ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3
    Interest Coverage & Debt/EBITDAIC=1.3x, D/EBITDA=4.0x
    ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x
    Total Debt / Shareholders Equity2.88
    ✗Ackman<= 1.0
    Negative debt-to-equity (higher means less debt)-2.8809; #3918/4210 (top 93.1%)
    ✗AsnessTop 30% of eligible cross-section
  • Valuation23% pass✓ 5✗ 23▾

    10 of 13 flag MH's valuation — Graham, Lynch, Greenblatt +7 more

    Price / 3-yr avg EPS
    ✗Graham<= 15x
    Price-to-Book Ratio3.1x
    ✗Graham<= 1.5x
    P/E x P/B
    ✗Graham<= 22.5
    Basic earnings-growth PEG (dividends excluded)P/E 61.1x (growth N/A)
    ✗Lynch< 1.0 (ideally < 0.5)
    EBIT / Enterprise Value6.2%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=6.2%, ROC=N/A (invested capital <= 0)
    ✗GreenblattBoth EY > 10% and ROC > 25%
    Price / EPS61.1x
    ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)
    Price / (CFO / Shares)6.7x
    ✓Dreman< 8x
    Price / Book Value per Share3.1x
    ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)
    Valuation ReasonablenessP/E=61.1x, OE Yield=14.1%
    ✓MungerP/E < 25 or Owner Earnings Yield > 5%
    P/E or FCF YieldP/E=61.1x, FCF Yield=11.1%
    ✓PabraiP/E < 15 or FCF Yield > 10%
    P/B or P/E vs. Historical AverageP/E=61.1x, P/B=3.1x
    ✗MarksP/E < 15 or P/B < 2.0
    Discount to Intrinsic ValueN/A (negative normalized EPS)
    ✗Marks>= 20% below intrinsic value
    Price / FCF per Share9.0x
    ✓Ackman<= 25
    Price vs. Trailing Low104% of trailing low ($11.16)
    ✓Templeton<= 120% of trailing low (certified split-adjusted live window)
    Net income / market capitalization+3.32%; #2267/6340 (top 35.8%)
    ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section
    Positive book equity / market capitalization+0.3952; #3302/6449 (top 51.2%)
    ✗AsnessTop 30% of eligible cross-section
    Price / Diluted EPS61.1x
    ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
    (EPS CAGR % + Dividend Yield %) / P/E
    ✗Neff> 0.7 (Neff's published traditional edge)
    Price / Tangible Book Value per ShareN/A (non-positive TBVPS)
    ✗SchlossP/TBV <= 1.00x (app cutoff)
    Book Value per Share Change
    ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
    Revenue / market capitalization+0.9372; #1837/5247 (top 35.0%)
    ✗OshaughnessyTop 10% of eligible cross-section
    (Operating cash flow - capex) / market capitalization+11.54%; #609/4519 (top 13.5%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Trailing six-month price return through the evaluation date-4.05%; #3076/6202 (top 49.6%)
    ✗OshaughnessyTop 10% of eligible cross-section

Business & financials

Financial snapshot: annual FY 2025. Current investor scores may use newer quarterly data.

Company Profile

Industry: Printing and Publishing
SIC Sector: Printing & Publishing
Size: Mid Cap($2.2B)
Revenue: $2.1B+0.1% YoY
Net Income: $35.3M+141.1% YoY

Financial Snapshot

Operating Margin13.2%
Return on Equity4.9%
Debt / Equity3.54
Current Ratio0.77
EPS (Diluted)$0.19
Shares Retired−14.8% / −14.8% 2y

Shareholder Return

Fiscal 2025

Issued 14.8% of shares last year, 14.8% issued over two.

Buybacks
—
Dividends
—

Company Financials

Latest TTM and quarters alongside annual years

TTM sums four consecutive quarters and uses the latest quarter-end balances. Quarter columns show three-month results; annual columns show full-year totals. Growth compares the same period a year earlier. EPS is not added for TTM; full-year ratios are blank for quarters.

The latest annual period end is unavailable. Showing the latest fiscal cycle’s quarters; quarter and annual columns may overlap. Quarterly shows the full quarter history.

MetricTTM · 2026-09-30

2025-10-01 – 2026-09-30

Sources · derived quarter values

Derived from cumulative filings: operating cash flow, capex, revenue, net income, operating income, gross profit, ebit, pre tax income, depreciation amortization.

Q2 FY 2027

2026-07-01 – 2026-09-30

Sources · derived quarter values

Derived from cumulative filings: operating cash flow, capex.

Q1 FY 2027

2026-04-01 – 2026-06-30

Sources
FY 2025
Sources
  • 10-K · 2026-06-11
FY 2024
Sources
  • 10-K · 2026-06-11
FY 2023
Sources
  • 10-K · 2026-06-11
FY 2022
Sources
  • 10-K · 2026-06-11
Market Cap$2.2Bcurrent----$2.8Best.$2.7Best.----
Revenue$2.1B$632.2M↓6%$549.9M↑3%$2.1B$2.1B↑7%$2.0B--
Operating Income$279.4M$141.1M↓10%$114.3M↑19%$276.8M↓10%$306.8M↑98%$155.3M--
Net Income$73.8M$86.4M↓18%$57.9M↑11426%$35.3M↑141%-$85.8M↑56%-$193.0M--
EPS (Diluted)--$0.45↓21%$0.30$0.19↑137%$-0.52↑55%$-1.16--
Gross Margin81.7%79.2%79.9%↑4%80.9%↑1%79.9%↑2%78.6%—
Operating Margin13.4%22.3%↓5%20.8%↑16%13.2%↓10%14.6%↑84%7.9%—
ROE8.4%——4.9%↑116%-30.6%↑41%-52.3%—
Total Debt$2.5B$2.5B↓10%$2.6B↓19%$2.6B↓19%$3.2B----
Shareholders' Equity$877.1M$877.1M↑10%$788.4M↑178%$726.2M↑159%$280.2M↓24%$368.8M↓34%$558.1M
Current Ratio0.860.86↓15%0.78↓6%0.77↓3%0.79——
Debt / Equity2.882.88↓19%3.27↓71%3.54↓69%11.34——
Operating Cash Flow$352.9M$189.5M↓28%$601.0K↑101%$331.2M↓49%$646.3M↑174%$236.2M--
Free Cash Flow$256.2M$164.1M↓33%-$23.3M↑79%$246.3M↓57%$575.2M↑273%$154.2M--

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Printing and Publishing

MH vs Peers — Financial Grading

Revenue$2.1BBottom 25%
Net Income$35.3MBottom 25%
ROE4.9%Bottom 25%
D/E3.54Bottom 25%
Op. Margin13.2%Median
Curr. Ratio0.77Median
CompanyMarket CapPriceRevenueNet IncomeROED/EOp. MarginCurr. RatioGrahamBuffettLynchGreenblattPiotroskiDreman
THOMSON REUTERS CORP /CAN/TRI$47.4B$109.30$7.5B$1.5B12.6%0.1828.5%0.642/94/93/70/3F-Score 63/11
NEWS CORPNWSA$14.5B$26.97$9.0B$573.0M6.7%0.23—1.622/92/94/71/3F-Score 55/11
NEW YORK TIMES CONYT$11.6B$72.81$2.8B$344.0M16.9%—15.3%1.541/93/94/71/3F-Score 94/11
PEARSON PLCPSO$10.5B$17.39$4.8B$451.2M9.2%0.4114.2%—1/92/91/70/3F-Score 63/11
JOHN WILEY & SONS, INC.WLY$2.5B$50.09$1.7B$221.6M26.1%0.8116.5%0.542/91/94/70/3F-Score 84/11
WEBTOON Entertainment Inc.WBTN$1.3B$9.85$1.4B$345.9M-29.6%—-4.6%2.613/91/91/70/3F-Score 43/11
DELUXE CORPDLX$1.2B$26.78$2.1B$82.1M12.1%2.1010.9%1.042/90/93/71/3F-Score 63/11
USA TODAY Co., Inc.TDAY$1.0B$7.09$2.3B$1.7M1.1%6.15—0.751/91/91/71/3F-Score 81/11