McGraw Hill, Inc. (MH) AI Stock Analysis

McGraw Hill provides education solutions across K-12, higher education, and professional learning markets domestically and internationally. It operates four segments: K-12, Higher Education, Global Professional, and International. The K-12 segment delivers core, supplemental, and intervention curricula alongside blended digital and print materials directly to school districts. Higher Education supplies adaptive digital platforms, content, and course materials to non-profit and for-profit colleges. Global Professional offers medical and engineering instructional solutions, while the International segment provides digital and print learning resources across approximately 100 countries and 80 languages.

Revenue rose from $1.79B in FY2022 to $2.10B in FY2026, marking a 5-year revenue CAGR of 6.4%, though revenue growth was flat at 0.1% in FY2026. Gross margin expanded each year from 76.6% in FY2022 to 80.9% in FY2026. Operating margins reversed from -24.3% in FY2022 to 15.0% in FY2026. Net income turned positive at $35.3M in FY2026, up from -$85.8M in FY2025 and -$674.3M in FY2022. For the latest quarter ended June 30, 2026, quarterly revenue increased 2.6% year-over-year, while quarterly earnings grew 9860.2%, supporting trailing twelve-month revenue of $2.12B and an operating margin of 21.5%.

As of June 30, 2026, McGraw Hill held $193.6M in cash and short-term investments against total debt of $2.65B, resulting in net debt of $2.46B. Total assets stood at $5.38B and shareholders' equity was $788.4M, yielding a debt-to-equity ratio of 3.37 and a current ratio of 0.71. In FY2026, the business produced $331.2M in operating cash flow and funded $84.9M in capital expenditures, delivering $246.3M in free cash flow. Over five years, the company's share count increased 15.7%.

At $13.98 per share, McGraw Hill has a market capitalization of $2.67B and an enterprise value of $4.95B. The stock trades at a trailing P/E of 29.1x and a forward P/E of 17.5x, above the median of its US-listed Consumer Defensive peers at 18.6x and 14.3x, respectively. Its price-to-sales of 1.3x also sits higher than the peer median of 0.7x, while its EV/EBITDA of 7.2x trades below the peer median of 11.7x. Over the past year, MH gained 12.1%, trailing the S&P 500 return of 16.8%.

Wall Street sentiment shows 9 Strong Buy, 3 Buy, and 1 Hold recommendations, with no Sell or Strong Sell ratings. The mean price target is $17.92, representing 28.2% upside from the last close of $13.98. For the fiscal year ending March 31, 2027, consensus estimates project revenue of $2.15B and EPS of $1.97, reflecting a -3.2% decline in EPS. McGraw Hill beat EPS estimates in each of the last 4 quarters, with its next earnings date scheduled for November 5, 2026.

This page is an AI-written research summary of McGraw Hill, Inc. (MH). 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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