McGraw Hill, Inc. (MH) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

McGraw Hill, Inc. (MH) Consumer Business Overview

McGraw Hill, Inc. delivers educational content and digital learning solutions across K-12, higher education, and professional sectors globally. With a focus on blended digital and print resources, the company serves a diverse range of learners and institutions, positioning itself as a key player in the evolving education landscape.

What Is the Investment Thesis for MH?

McGraw Hill, Inc. presents a mixed investment thesis. The company's established presence in the education sector and diverse product offerings provide a stable revenue base. However, a negative profit margin of -3.4% raises concerns about profitability. The company's beta of -1.70 suggests low volatility and potential stability during market downturns. Growth catalysts include expansion in digital learning solutions and international markets. Key value drivers include the company's strong brand recognition and established relationships with educational institutions. Investors should monitor the company's ability to improve profitability and capitalize on digital learning trends.

Based on FMP financials and quantitative analysis

MH Key Highlights

Market capitalization of $2.32B reflects McGraw Hill, Inc.'s significant presence in the education market.

• Gross margin of 80.8% indicates strong pricing power and efficient cost management in content creation and distribution.
• Negative profit margin of -3.4% signals potential challenges in achieving profitability and managing operating expenses.
• Beta of -1.70 suggests that the stock is less volatile than the market, offering potential stability during economic uncertainty.
• Presence in approximately 100 countries and 80 languages outside the United States through the International segment indicates a substantial global footprint.

Who Are MH's Competitors?

MH is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are MH's Key Strengths?

Strong brand recognition in the education market.

• Diverse product portfolio across K-12, higher education, and professional segments.
• Global presence and distribution network.
• Focus on digital learning solutions.

What Are MH's Weaknesses?

Negative profit margin.

• Dependence on traditional print materials.
• Competition from emerging EdTech companies.
• Potential challenges in adapting to rapidly changing technology.

What Could Drive MH Stock Higher?

Continued expansion of digital learning platforms and adaptive learning technologies.

• Strategic partnerships with educational institutions to integrate McGraw Hill's solutions into their curricula.
• Launch of new professional development programs in high-demand fields.
• International expansion into emerging markets with tailored educational content.

What Are the Key Risks for MH?

Financial-distress signal — its Altman Z-Score of 0.51 sits in the distress zone (elevated bankruptcy risk).

• Increased competition from emerging EdTech companies and alternative learning platforms.
• Changes in government regulations and funding for education.
• Economic downturns affecting education spending and enrollment rates.
• Technological disruptions in the education market.
• Negative profit margin impacting financial performance.

What Are the Growth Opportunities for MH?

• Expansion in Digital Learning Solutions: McGraw Hill, Inc. can capitalize on the growing demand for digital learning solutions by investing in the development of adaptive learning platforms and interactive content. By enhancing its digital offerings, McGraw Hill can attract a larger share of the market and improve student outcomes.
• International Market Penetration: The International segment presents a significant growth opportunity for McGraw Hill, Inc. By expanding its presence in emerging markets and tailoring its solutions to local needs, the company can tap into new revenue streams. The global education market is expected to grow in regions such as Asia-Pacific and Latin America, providing opportunities for McGraw Hill to increase its international market share.
• Strategic Partnerships and Acquisitions: McGraw Hill, Inc. can pursue strategic partnerships and acquisitions to expand its product portfolio and reach new markets. Collaborating with EdTech companies and acquiring complementary businesses can enhance its competitive position and accelerate growth. These partnerships can provide access to innovative technologies and distribution channels.
• Focus on Professional Development: The Global Professional segment offers opportunities for growth by providing comprehensive learning solutions for professionals in medical and engineering fields. By expanding its offerings in areas such as continuing education and certification programs, McGraw Hill can cater to the evolving needs of professionals and generate recurring revenue streams. The market for professional development is expected to grow as industries demand specialized skills and knowledge.
• Personalized Learning Experiences: McGraw Hill, Inc. can leverage data analytics and artificial intelligence to create personalized learning experiences for students. By tailoring content and assessments to individual learning styles and needs, the company can improve student engagement and outcomes. Personalized learning is becoming increasingly important in education, and McGraw Hill can differentiate itself by offering adaptive and customized learning solutions.

What Are MH's Competitive Advantages?

• Established brand reputation and recognition in the education market.
• Extensive library of educational content and resources.
• Strong relationships with educational institutions and distribution partners.
• Global presence and reach through its international segment.

What Does MH Do?

Founded in 1888 and headquartered in Columbus, Ohio, McGraw Hill, Inc. has evolved into a leading provider of educational content and digital learning solutions. Originally known as Mav Holding Corporation, the company rebranded to McGraw Hill, Inc. in October 2022. McGraw Hill operates through four segments: K-12, Higher Education, Global Professional, and International. The K-12 segment offers core, supplemental, and intervention curricula, selling blended digital and print learning solutions directly to school districts in the United States. The Higher Education segment provides adaptive digital learning solutions and instructional materials to students, instructors, and institutions, including both non-profit and for-profit entities. These solutions are distributed through online retailers, distribution partners, and McGraw Hill's proprietary e-commerce platform. The Global Professional segment delivers comprehensive medical and engineering learning solutions to students, institutions, and professionals, offering digital and print materials accessible through various mediums. The International segment extends McGraw Hill's reach to approximately 100 countries and 80 languages outside the United States, serving the needs of learners and educators with K-12 and higher education solutions through its distribution network.

What Products and Services Does MH Offer?

• Provides core, supplemental, and intervention curricula for K-12 schools.
• Offers adaptive digital learning solutions and content for higher education.
• Delivers comprehensive medical and engineering learning solutions for professionals.
• Sells blended digital and print learning solutions directly to school districts.
• Distributes higher education solutions through online retailers and distribution partners.
• Offers digital and print solutions in approximately 100 countries and 80 languages outside the United States.

How Does MH Make Money?

• Sells educational content and learning solutions to K-12 schools, higher education institutions, and professionals.
• Generates revenue through the sale of digital and print materials.
• Utilizes a distribution network to reach customers in international markets.
• Offers subscription-based access to digital learning platforms.

What Industry Does MH Operate In?

McGraw Hill, Inc. operates in the Education & Training Services industry, which is experiencing a shift towards digital learning solutions. The market is competitive, with companies like UNFI: United Natural Foods, Inc. also vying for market share. The industry is driven by increasing demand for personalized learning experiences and the integration of technology in education. McGraw Hill's focus on blended digital and print solutions positions it to capitalize on these trends, although it faces competition from both traditional publishers and emerging EdTech companies.

Who Are MH's Key Customers?

• K-12 schools and school districts in the United States.
• Students enrolled in non-profit colleges and universities.
• Students enrolled in for-profit institutions.
• Professionals in medical and engineering fields.

Over the past six months, McGraw Hill, Inc. insiders filed 10 SEC Form 4 transactions — 0 sales and 10 purchases. On net that is roughly 298K shares acquired (about $249K) — insiders putting money in tends to read as conviction.

Quarterly Financial Performance: McGraw Hill, Inc.

Revenue for McGraw Hill, Inc. came in at $549.9M during Q1 FY2027, a 18.6% improvement versus the preceding quarter. The company recorded net income of $57.9M, with diluted EPS of $0.30. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Consumer Defensive company. Across the four most recent quarters, MH averaged $0.12 in diluted EPS.

MH Valuation & Market Position

With a $2.32B market cap, McGraw Hill, Inc. sits in the mid-cap segment of the market. Analyst price targets span from $14.00 to $17.00, with a consensus of $16.14. At the current price of $12.11, that implies approximately 33% upside potential. Relative to its peer group, MH's quantitative score of 48/100 is below the peer average of 82/100.

Return on equity for McGraw Hill, Inc. stands at 12.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.7%, showing how much profit it generates from its asset base. MH trades at a trailing price-to-earnings ratio of 25.77, roughly in line with the Consumer Defensive sector average of ~27.60x. Its free cash flow yield is 14.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.71 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 3.7%, the inverse of the P/E and a quick read on earnings relative to price.

McGraw Hill, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 0.51 places it in the distress zone, a signal of elevated financial risk.

McGraw Hill, Inc. has beaten Wall Street's EPS estimate in 4 of its last 5 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 155.4% above estimates on average.

Company Profile

McGraw Hill, Inc. operates in the Education & Training Services industry within the Consumer Defensive sector. It is headquartered in Columbus, United States.

MH Financials

MH Latest News

MH Analyst Consensus

MH MoonshotScore

McGraw Hill, Inc. Consumer Defensive Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources