Graham Holdings Co. (GHC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Life Time Group Holdings, Inc.

Expedia Group, Inc.

Graham Holdings Co.

Rollins, Inc.

UniFirst Corp.

Service Corp. International

Global Business Travel Group, Inc.

Planet Fitness, Inc.

Marriott Vacations Worldwide Corp.

H&R Block, Inc.

Valvoline, Inc.

Why is Graham Holdings Co. ?

Company has a low Debt to Equity ratio (avg) at times

Low Debt Company with Strong Long Term Fundamental Strength

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at USD 489.3 MM
PRE-TAX PROFIT(Q) At USD 84.79 MM has Grown at 1,222.61%
NET PROFIT(Q) At USD 52.64 MM has Grown at 478.24%

With ROE of 13.58%, it has a attractive valuation with a 4.33 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 16.66%, its profits have risen by 162.3% ; the PEG ratio of the company is 0.2

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Graham Holdings Co. should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tour, Travel Related Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Graham Holdings Co. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Graham Holdings Co.

13.27%

1.96

29.11%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.35%

EBIT Growth (5y)

11.60%

EBIT to Interest (avg)

2.77

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

0.93

Tax Ratio

28.84%

Dividend Payout Ratio

4.21%

Pledged Shares

Institutional Holding

82.71%

ROCE (avg)

4.75%

ROE (avg)

7.41%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.59

EV to EBIT

69.19

EV to EBITDA

43.30

EV to Capital Employed

4.99

EV to Sales

4.08

PEG Ratio

0.07

Dividend Yield

0.12%

ROCE (Latest)

7.21%

ROE (Latest)

14.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

16What is working for the Company

NET PROFIT(HY)

At USD 121.54 MM has Grown at 190.71%

OPERATING CASH FLOW(Y)

Highest at USD 429.82 MM

ROCE(HY)

Highest at 17.2%

DIVIDEND PER SHARE(HY)

Highest at USD 9.15

INTEREST COVERAGE RATIO(Q)

Highest at 682.98

CASH AND EQV(HY)

Highest at USD 2,370.39 MM

DEBT-EQUITY RATIO (HY)

Lowest at -1.52 %

NET SALES(Q)

Highest at USD 1,278.86 MM

-2What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 7.27% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 11.5 times

Here's what is working for Graham Holdings Co.

Net Profit

At USD 121.54 MM has Grown at 190.71%

Year on Year (YoY)

MOJO Watch

Net Profit trend is very positive

Net Profit (USD MM)

Operating Cash Flow

Highest at USD 429.82 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Highest at 682.98

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at USD 9.15 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 1,278.86 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Cash and Eqv

Highest at USD 2,370.39 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -1.52 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Graham Holdings Co.

Inventory Turnover Ratio

Lowest at 11.5 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 7.27% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales