⬤ Loading…
McGraw Hill, Inc.
…
🏹 Trader: 📈 Stage 2 | BRS 71 Forming View all →
📈 Stage 2 detected Find the fundamental catalyst → → run Growth Triggers in Ask AI
$2.5B
Market Cap
27.5
P/E
1.23
PEG
8.4%
ROCE
6.6%
ROE
3.37
D/E
16.3%
OPM
-18.7%
% from 52W High
86
α RS
🔍 MH is showing a sector-leadership setup because Sector RRG has Consumer Staples in the Leading quadrant with the trail still rolling over, it matches 2 of 39 tracked screener presets, RS Rating is 86, and it has maintained a 13-day Stage 2 momentum persistence. The main caution: the Turnaround Watch preset's Backtest win rate is only 39.2%. Net: Mixed signal stack, not a recommendation. ? RRG Conviction RS Rating Momentum Streaks Backtest
Sources
Consumer Staples in Leading quadrant · Conviction 2/39 · RS Rating 86 · Stage 2 streak: 13d · Backtest win rate 39.2%
⚖️ Compare 🔒 Generate Report 🔒 Research Packet 📚 Guides
🌏 Global Investor Returns
Currency-adjusted total returns for MH including FX impact
🌏
Click 🌏 Returns tab to load data
📈 Price History
Ratio Health
— Excellent
— Good
— Average
— Poor
By Category
📊 Peer Medians
About

McGraw Hill, Inc., doing business as McGraw Hill, provides education solutions for K-12, higher education, and professional learning in the United States and internationally. It operates through K-12, Higher Education, Global Professional, and International segments. The K-12 segment provides core, supplemental, and intervention curricula to support the needs of the K-12 schools. This segment also sells blended digital and print learning solutions directly to school districts across the United States. The Higher Education segment offers students, instructors, and institutions with adaptive digital learning solutions and content, and instructional materials. Its solutions are used by students enrolled in non-profit colleges and universities, as well as for-profit institutions. This segment sells its higher education solutions to online retailers and distribution partners, as well as directly to student through its proprietary e-commerce platform. The Global Professional segment provides students, institutions, and professionals with comprehensive medical and engineering learning solutions. This segment sells digital learning solutions and print materials accessible through a range of mediums. The International segment offers digital and print solutions in approximately 100 countries and 80 languages outside of the United States. The company was formerly known as Mav Holding Corporation and changed its name to McGraw Hill, Inc. in October 2022. The company was founded in 1888 and is headquartered in Columbus, Ohio. McGraw Hill, Inc. operates as a subsidiary of Pe Mav Holdings, Llc.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
Loading…
⭐ Superinvestors Holding MH
View All Superinvestors →
Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 169.1K $2.3M 0.00% Mar 2026
Steve Cohen Point72 Asset Management 158.2K $2.2M 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔒
Premium Feature
AI-generated 10-section company profile — business model, financials, strengths, risks & management quality
Upgrade to Premium
Already a member? Log in
📐
3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
Open Model →
🎙 Management Tone Confident Specific → Stable 3 quarters Full tone analysis in Intelligence →
📊 MIXED Q3 revenue +4.2% YoY to $434M; EBITDA margin 31.3%; raised FY2026 guidance
Revenue & Profitability
Q3 fiscal 2026 total revenue grew 4.2% YoY to $434 million. Gross profit margin expanded nearly 100 bps to 85.3%. Adjusted EBITDA rose 7.7% to $136 million, yielding a 31.3% margin. Cash flow from operations increased 12% to $309 million. The company raised full-year fiscal 2026 guidance to revenue of $2.067-$2.087 billion and Adjusted EBITDA of $729-$739 million. Net leverage stood at 2.9x as of December 31, 2025.
Outlook
Management is confident in returning to overall revenue growth in fiscal 2027, driven by a larger K-12 market (approximately $300 million increase in addressable market) and sustained higher education share gains. They see no material impact from proposed federal education policy changes or tariffs. Favorable enrollment trends in two-year colleges and business management disciplines provide tailwinds in higher education.
Growth Drivers
Higher education revenue surged 24% YoY, fueled by 30% market share (record), Inclusive Access (60% of segment revenue), and the Evergreen platform. K-12 gained share in a down year, taking the lead in Florida ELA and showing strength in science adoptions. AI-powered products (AI Reader, ALEKS for Calculus, Sharpen Advantage, Clinical Reasoning) are driving deeper engagement. Globally, ALEKS for Calculus opens a $100 million market opportunity, and International revenue decline narrowed sequentially.
Balance Sheet & CapEx
Capital expenditures and product development investment as a percentage of revenue remain unchanged at 8-9% of total revenue. The company continues to invest in AI capabilities, content authoring tools (Scribe), and an offer management system to streamline sales. No specific dollar figures for capex were provided.
Margins
Gross margin expanded roughly 100 bps YoY to 85.3% due to favorable digital mix and efficient operations. Adjusted EBITDA margin improved nearly 100 bps to 31.3%. Management expects continued margin expansion through operating leverage and ongoing AI-led efficiency initiatives (e.g., Scribe) while reinvesting in growth. They reaffirmed maintaining CapEx/product development at 8-9% of revenue.
Key Risks
Management noted no material impact from proposed federal education policy changes or government shutdowns. Exposure to enrollment cycles is mitigated by over-indexing to resilient pockets like two-year colleges and business management. Adoption timing in Texas is being monitored but not considered a delay risk. Tariffs have had no impact. The company’s cash flow is seasonal, with Q4 and Q1 representing the cash trough.
Generated by AI · Q3 2026 results · Not investment advice
🔒
Free Account Required

Create a free Finmagine account to access Finmagine™ Scorecard.

See how this company scores across 5 dimensions — Financial Health, Growth Prospects, Competitive Position, Management Quality, and Valuation — powered by 30+ computed ratios.

Create Free AccountLog In
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Ask AI.

Get 25 expert AI analysis templates — Business KPIs, Comprehensive, Forensic Governance, Peer Comparison, Risk-Reward, Full Research Report, IPO Decoder, Red Flag Detector, and more — ready to paste into ChatGPT, Claude, Gemini, or Perplexity.

Upgrade to PremiumCreate Free Account
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Peer Comparison.

Compare this company side-by-side against its sector peers with financial metrics, ratio benchmarking, and relative performance across all key dimensions.

Upgrade to PremiumCreate Free Account
✓ 📞 Earnings Call Transcripts (4 quarters) submit a missing quarter
🔍
🔎 See cross-company document search → ?
📞 Earnings Call Transcripts (4)
Q4 2026 Q4 2026 2026-06-11
Fiscal 2026 outperformed expectations with strong recurring revenue, margin expansion, and AI-driven innovation. FY 2027 guidance anticipates continued growth, robust free cash flow, and disciplined capital allocation, with K-12 and higher ed segments positioned for further share gains.
Q3 2026 Q3 2026 2026-02-11
Q3 revenue rose 4.2% year-over-year, led by 24% growth in higher education and strong digital expansion. Adjusted EBITDA margin reached 31.3%, and recurring revenue now makes up 82% of total revenue. Fiscal 2026 guidance was raised, with continued margin expansion and debt reduction prioritized.
Q2 2026 Q2 2026 2025-11-12
Q2 2026 results exceeded expectations with strong higher ed growth, digital and recurring revenue gains, and margin expansion. Guidance for fiscal 2026 was raised, with robust cash flow, continued debt reduction, and new AI-driven products supporting future growth.
Q1 2026 Q1 2026 2025-08-14
Q1 2026 saw revenue and adjusted EBITDA at the high end of guidance, driven by digital growth and higher education share gains. The IPO strengthened the balance sheet, and new AI-driven products are fueling innovation. FY2026 guidance reflects a temporary K-12 cycle dip, with strong recurring revenue and margin outlook.
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Catalyst Timeline.

Every result, order win, insider trade, ECS update, earnings-call, and SEC announcement for this company — in one chronological lane.

Upgrade to PremiumCreate Free Account
🔒
Premium Feature

Upgrade to Finmagine Premium to unlock Full Report.

Read the complete Finmagine™ investment research report — comprehensive fundamental analysis, business model assessment, competitive positioning, and investment recommendation.

Upgrade to PremiumCreate Free Account

📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

🎯
Discover Our Proven Investment Framework Learn how we analyze and rank stocks using advanced quantitative models, multi-dimensional scoring systems, and dynamic discriminatory ranking techniques that have guided successful investment decisions across market cycles.
📊 Explore The Finmagine™ Methodology

A comprehensive, bias-free framework for analyzing and ranking stocks by Financial Strength, Growth Potential, Competitive Edge, Management Quality, and Value.

Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

Not SEC-Registered:
Finmagine is not registered as an investment adviser with the U.S. Securities and Exchange Commission (SEC) or any state securities authority. Nothing on this platform constitutes investment advice as defined under the Investment Advisers Act of 1940.

Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

Forward-Looking Statements:
This analysis may contain forward-looking statements, forecasts, or projections that are inherently subject to risks, uncertainties, and assumptions. Actual results may differ materially from those expressed or implied. Finmagine does not undertake any obligation to update such statements in the future.

Limitation of Liability:
The content is provided "as is" without any warranties, express or implied. Finmagine expressly disclaims any liability for errors, omissions, or any losses incurred as a result of reliance on the information provided. Readers assume full responsibility for their investment decisions.