Graham Holdings Company (GHC) AI Stock Analysis

Graham Holdings Company operates globally as a diversified education and media enterprise through its various subsidiaries. It provides educational services including test preparation, professional training, and certifications through Purdue University Global, alongside English-language training, academic preparation, colleges, a business school, and an online learning platform. In media, it owns seven television stations, social media audience engagement tools, Foreign Policy magazine, and Slate. Its portfolio also includes home health and hospice services, industrial burners and controls, cybersecurity training, commercial lighting solutions, restaurants, entertainment venues, and automobile dealerships.

From FY2020 to FY2025, revenue achieved a 5-year CAGR of 11.2%, expanding from $3.19B in FY2021 to $4.91B in FY2025. Annual top-line growth slowed to 2.5% in FY2025 from 8.5% in FY2024 and 12.5% in FY2023. Gross margin declined to 27.6% in FY2025 from 33.6% in FY2021, while operating margin rose to 5.1% in FY2025. Net income stood at $292.3M in FY2025 with an EPS of $51.50, down from $724.6M and $63.77 in FY2024. For the latest quarter ended June 30, 2026, quarterly revenue grew 7.1% year-over-year, while quarterly earnings grew 676.5%.

As of June 30, 2026, the company held $1.25B in cash and short-term investments, with total debt of $1.34B, resulting in net debt of $92.6M. Shareholders' equity was $4.76B, supported by a debt-to-equity ratio of 0.28 and a current ratio of 1.86. In FY2025, Graham Holdings generated $339.5M in operating cash flow and $267.7M in free cash flow. Cash allocations for FY2025 included $71.9M for capital expenditures, $31.4M for dividends paid, and $3.5M for share buybacks.

Graham Holdings trades at a trailing P/E of 9.7x and an EV/EBITDA of 5.3x, compared to medians of 24.8x and 13.9x for US-listed Industrials peers. Its forward P/E of 20.1x is higher than the peer median of 17.2x, while its price-to-sales ratio of 1.0x compares to the peer median of 1.5x. Over the past year, the stock returned 27.5%, outperforming the S&P 500 return of 16.8%. Over a 5-year period, its return of 119.8% also exceeded the S&P 500 return of 83.0%.

Graham Holdings offers an annual forward dividend of $7.52 per share, representing a dividend yield of 0.63% and a payout ratio of 12.2%. Dividends are distributed quarterly and have been paid for 13 consecutive years. Over the past 5 years, the annualized dividend growth rate was 4.4%. The last ex-dividend date was October 15, 2026.

Analyst coverage is limited to 1 analyst, who issues a StrongSell rating with 0 StrongBuy, Buy, Hold, or Sell ratings. The mean price target is $1100.00, which is 8.6% below the last close of $1203.26. For the current fiscal year ending December 31, 2026, the consensus EPS estimate is $74.00 on revenue of $5.23B. Next fiscal year estimates project EPS of $67.50 on $5.42B in revenue. The company posted 3 EPS beats over the last 4 quarters, with next earnings scheduled for November 4, 2026.

This page is an AI-written research summary of Graham Holdings Company (GHC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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