McGraw Hill, Inc.
MHAbout 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.
Investment snapshot
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
| Verdict | Meaning |
|---|---|
| BUY | Positive purchase signal: the framework's buy requirements are met. |
| PASS | The 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. |
| NEUTRAL | Neither a positive nor negative conclusion. It does not mean to hold an existing position. |
| FAIL | The company does not clear the framework's requirements. |
| Ranked | Ranked 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.
| Metric | Graham 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Verdict | FAIL | FAIL | FAIL | Not ranked | NEUTRAL | FAIL | FAIL | FAIL | FAIL | FAIL | FAIL | FAIL | FAIL | NEUTRAL | FAIL | FAIL | NEUTRAL |
| Score | |||||||||||||||||
| Analysis | 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… | Checking access… |
| Intrinsic Value (annual) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||
| Margin of Safety | -187.8% | +39.9% | N/A | -14.1% | N/A | N/A | +23.2% | +26.0% | N/A | N/A | +41.5% | N/A | N/A | N/A | N/A | N/A | N/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 growingFCF Positive and Growing$246.3M✗LynchPositive and growingOperating Cash Flow$331.2M✓PiotroskiCFO > 0(CFO / Total Assets) vs ROACFO/Assets=6.04%, ROA=0.64%✓PiotroskiCFO/Assets > ROAPrice / (CFO / Shares)6.7x✓Dreman< 8xP/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<= 25Positive Operating Cash Flow frequency3/3 years positive✓SleepPositive OCF in >= 70% of available yearsOperating 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 $11.60Buffett fair value$19.30✓Buffett+39.9% margin vs $11.60Greenblatt fair value$10.17✗Greenblatt-14.1% margin vs $11.60Munger fair value$15.11✓Munger+23.2% margin vs $11.60Pabrai fair value$15.67✓Pabrai+26.0% margin vs $11.60Ackman fair value$19.84✓Ackman+41.5% margin vs $11.60
Where It Falls Short
- Growth0% pass✓ 1✗ 12▾
No clean pass — all 8 investors flag at least one growth criterion
EPS Growth (3-yr avg, 10-yr window)✗Graham>= 33% growthBasic earnings-growth PEG (dividends excluded)P/E 61.1x (growth N/A)✗Lynch< 1.0 (ideally < 0.5)3-5 Year EPS CAGR✗Lynch15-30% (Fast Grower); > 0% to passInventory Growth vs Revenue GrowthInv: 12.1% vs Rev: 0.1%✗LynchInventory growth < Revenue growthEPS Growth Direction$-1.16 (2023) -> $0.19 (2025)✓DremanPositive over recent yearsEPS CAGR✗Dreman> 5% annualizedPositive Net Income Frequency1/3 years positive✗MarksPositive net income in >= 7 of last 10 years3yr Median Revenue Growth3.6%✗Ackman>= 5%Positive EPS Growth Frequency2/2 years with positive EPS growth✗AckmanPositive EPS growth in >= 3 of last 5 years5-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 holding5-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>= 2.0ROIC (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 YoYRevenue / Total Assets Change YoY0.36x -> 0.38x✓PiotroskiImproved YoYCurrent Assets / Current Liabilities0.86✗Dreman> 1.5Return 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 eachReinvestment 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 yearsEPS Growth (3-yr avg, 10-yr window)✗Graham>= 33% growthNet Income Positive (10+ years)1/4 years positive✗BuffettPositive every year for 10+ yearsROE (up to 5-year arithmetic mean)-26.0%✗Buffett> 15% arithmetic mean (app rule)Operating Margin (10-yr trend)✗BuffettStable or rising over 10 yearsFree Cash Flow Proxy$312.4M✓BuffettPositive and growingEarnings Variance (10-yr CoV)✗BuffettCoV < 0.3Retained Earnings Effectiveness✗Buffett$1 retained -> > $1 market value createdBasic 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 passROE8.4%✗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 > 0ROA 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 > ROAGross Margin Change YoY79.9% -> 80.9%✓PiotroskiImproved YoYPre-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 < 15Return on Equity-26.0% (3-yr avg)✗AkreROE > 20% (3-year avg)Discount to Intrinsic ValueN/A (negative normalized EPS)✗Marks>= 20% below intrinsic valuePositive Net Income Frequency1/3 years positive✗MarksPositive net income in >= 7 of last 10 yearsOperating 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 yearsRevenue 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 holdingNet income / market capitalization+3.32%; #2267/6340 (top 35.8%)✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-sectionGross profit / total assets+29.75%; #1448/3702 (top 39.1%)✗AsnessTop 30% of eligible cross-sectionNet income / positive book equity+8.41%; #2048/5226 (top 39.2%)✗AsnessTop 30% of eligible cross-sectionNegative 5-year standard deviation of ROA✗AsnessTop 30% of eligible cross-section3-5 Year Diluted EPS CAGR✗Neff7%-20% annualizedPositive 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 $-199.7M✗GrahamLT Debt <= Net Current AssetsDebt/Equity & Interest CoverageD/E: 3.54, IC: 1.3x✗BuffettD/E < 0.5 AND Interest Coverage > 5xTotal Debt / Equity2.88✗Lynch< 0.33Cash - Long-term Debt$-2.3B✗LynchPositive preferredLT Debt / Total Assets Change54.96% -> 46.68%✓PiotroskiDecreased YoYCurrent 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 < 1.00xDebt Levels2.88✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3Interest Coverage & Debt/EBITDAIC=1.3x, D/EBITDA=4.0x✗MarksInterest Coverage > 3x; Debt/EBITDA < 4xTotal Debt / Shareholders Equity2.88✗Ackman<= 1.0Negative 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<= 15xPrice-to-Book Ratio3.1x✗Graham<= 1.5xP/E x P/B✗Graham<= 22.5Basic 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< 8xPrice / 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 < 2.0Discount to Intrinsic ValueN/A (negative normalized EPS)✗Marks>= 20% below intrinsic valuePrice / FCF per Share9.0x✓Ackman<= 25Price 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-sectionPositive book equity / market capitalization+0.3952; #3302/6449 (top 51.2%)✗AsnessTop 30% of eligible cross-sectionPrice / 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-sectionTrailing 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
Financial Snapshot
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.
| Metric | TTM · 2026-09-30 2025-10-01 – 2026-09-30 Sources · derived quarter valuesDerived 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 valuesDerived from cumulative filings: operating cash flow, capex. | Q1 FY 2027 2026-04-01 – 2026-06-30 Sources | FY 2025Sources
| FY 2024Sources
| FY 2023Sources
| FY 2022Sources
|
|---|---|---|---|---|---|---|---|
| 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 Margin | 81.7% | 79.2% | 79.9%↑4% | 80.9%↑1% | 79.9%↑2% | 78.6% | — |
| Operating Margin | 13.4% | 22.3%↓5% | 20.8%↑16% | 13.2%↓10% | 14.6%↑84% | 7.9% | — |
| ROE | 8.4% | — | — | 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 Ratio | 0.86 | 0.86↓15% | 0.78↓6% | 0.77↓3% | 0.79 | — | — |
| Debt / Equity | 2.88 | 2.88↓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
| Company | Market Cap | Price | Revenue | Net Income | ROE | D/E | Op. Margin | Curr. Ratio | Graham | Buffett | Lynch | Greenblatt | Piotroski | Dreman |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| THOMSON REUTERS CORP /CAN/TRI | $47.4B | $109.30 | $7.5B | $1.5B | 12.6% | 0.18 | 28.5% | 0.64 | 2/9 | 4/9 | 3/7 | 0/3 | F-Score 6 | 3/11 |
| NEWS CORPNWSA | $14.5B | $26.97 | $9.0B | $573.0M | 6.7% | 0.23 | — | 1.62 | 2/9 | 2/9 | 4/7 | 1/3 | F-Score 5 | 5/11 |
| NEW YORK TIMES CONYT | $11.6B | $72.81 | $2.8B | $344.0M | 16.9% | — | 15.3% | 1.54 | 1/9 | 3/9 | 4/7 | 1/3 | F-Score 9 | 4/11 |
| PEARSON PLCPSO | $10.5B | $17.39 | $4.8B | $451.2M | 9.2% | 0.41 | 14.2% | — | 1/9 | 2/9 | 1/7 | 0/3 | F-Score 6 | 3/11 |
| JOHN WILEY & SONS, INC.WLY | $2.5B | $50.09 | $1.7B | $221.6M | 26.1% | 0.81 | 16.5% | 0.54 | 2/9 | 1/9 | 4/7 | 0/3 | F-Score 8 | 4/11 |
| WEBTOON Entertainment Inc.WBTN | $1.3B | $9.85 | $1.4B | $345.9M | -29.6% | — | -4.6% | 2.61 | 3/9 | 1/9 | 1/7 | 0/3 | F-Score 4 | 3/11 |
| DELUXE CORPDLX | $1.2B | $26.78 | $2.1B | $82.1M | 12.1% | 2.10 | 10.9% | 1.04 | 2/9 | 0/9 | 3/7 | 1/3 | F-Score 6 | 3/11 |
| USA TODAY Co., Inc.TDAY | $1.0B | $7.09 | $2.3B | $1.7M | 1.1% | 6.15 | — | 0.75 | 1/9 | 1/9 | 1/7 | 1/3 | F-Score 8 | 1/11 |