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McGraw Hill, Inc. (MH) stock analysis

MHNYSEMiscellaneous PublishingFiscal year ends March 31
Financials through Q2 FY2027, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 5, 2026Score 5/3023% below fair value
$11.04+0.09 (+0.82%)

Close on Nov 12, 2026Market cap $2.11BP/E 29.1Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value2Growth2Performance1Health0Dividend0

Weak5 of 30 checks passed

McGraw Hill passes 5 of the 30 checks behind our score; 15 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
2/6
Growth
2/6
Past performance
1/6
Financial health
0/6
Dividend
0/6

What stands out

  • Margin of safety over 20%

    The price is 23.3% below fair value, more than the 20% cushion we look for.

  • Trading below fair value

    The share price of $10.95 is below our fair value estimate of $14.28.

  • Guidance raised

    McGraw Hill raised its Fiscal Year 2026 Revenue outlook on Feb 11, 2026.

  • Gross margin improving

    Gross margin was 81.7% over the last twelve months, against 80.6% a year earlier.

What to watch

  • Return on capital under 10%

    Return on invested capital was 7.8%, below the 10% that usually covers the cost of capital.

  • High debt

    Debt is 288% of shareholders' equity, above the 40% we consider low.

  • Debt not well covered by cash flow

    Operating cash flow over the last twelve months equals 14.0% of total debt; we look for at least 20%.

  • Elevated bankruptcy risk

    The Altman Z-score is 0.47; above 3 is the safe zone and below 1.8 the distress zone.

Valuation2/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E above the industry

    McGraw Hill's P/E of 28.8 is above the Printing, Publishing, and Allied Industries median of 17.7.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B above the industry

    McGraw Hill's price-to-book of 2.39 is above the Printing, Publishing, and Allied Industries median of 2.39.

  • Trading below fair value

    The share price of $10.95 is below our fair value estimate of $14.28.

  • Margin of safety over 20%

    The price is 23.3% below fair value, more than the 20% cushion we look for.

Growth2/6

  • Revenue growth over 3 years

    Needs three years of positive revenue.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing slower than the industry

    Revenue grew -0.7% over the last twelve months; the Printing, Publishing, and Allied Industries median is 1.1%.

  • Guidance raised

    McGraw Hill raised its Fiscal Year 2026 Revenue outlook on Feb 11, 2026.

  • Gross margin improving

    Gross margin was 81.7% over the last twelve months, against 80.6% a year earlier.

Past performance1/6

  • Return on equity

    Needs positive equity and five years of results.

  • Return on capital under 10%

    Return on invested capital was 7.8%, below the 10% that usually covers the cost of capital.

  • Return on equity above the industry

    McGraw Hill's return on equity of 8.8% is above the Printing, Publishing, and Allied Industries median of 7.4%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin against its history

    Needs five years of revenue and net income.

  • Net margin below the industry

    McGraw Hill's net margin of 3.5% is below the Printing, Publishing, and Allied Industries median of 3.6%.

Financial health0/6

  • High debt

    Debt is 288% of shareholders' equity, above the 40% we consider low.

  • Debt trend

    Needs a balance sheet from five years ago with positive equity.

  • Debt not well covered by cash flow

    Operating cash flow over the last twelve months equals 14.0% of total debt; we look for at least 20%.

  • Interest coverage

    Interest expense is not reported separately.

  • Short-term assets don't cover short-term debts

    Current assets are 0.86 times current liabilities.

  • Elevated bankruptcy risk

    The Altman Z-score is 0.47; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    McGraw Hill has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$14.28

The share price is 23% below this estimate.

20%+ below
Near fair value
20%+ above
$10.95Price$14.28Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/E17.7×–17.7×$6.7140%
EV/EBITDA9.6×–9.6×$20.1335%
P/B2.4×–2.4×$10.9510%
Earnings power7.4% cost of equity––$23.0415%
Fair value$14.28100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • EV/EBITDA at month end
  • Printing, Publishing, and Allied Industries median 9.6

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Medium risk

Average value traded per day
$7.29M
Value traded per 1% price move
$3.10M

Downside

Medium risk

Typical loss in a bad month
22.7%
Volatility (annualized)
62%
Sharpe ratio, 1 year
-0.09
Beta to the S&P 500 (5Y)
0.48

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2023 to 2026

Gross margin

80.9%

Operating margin

13.2%

Net margin

1.7%

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