📊 GHC Key Takeaways
Is Graham Holdings Co (GHC) a Good Investment?
Graham Holdings demonstrates stable operational performance with solid free cash flow generation ($275.3M) and strong balance sheet metrics (0.15x debt/equity, 12.2x interest coverage), but profitability metrics reveal modest growth with net income advancing only 0.6% YoY and diluted EPS declining 59.3% YoY. The company's 6.0% net margin and 3.5% ROA are adequate but uninspiring, suggesting limited earnings power despite $4.9B in revenues.
Graham Holdings shows solid financial health, with low leverage, strong interest coverage, and positive free cash flow generation supporting resilience. However, growth is modest and profitability remains only moderate, with a 4.8% operating margin and limited net income expansion, which tempers the overall fundamental outlook. The large decline in diluted EPS despite stable net income also suggests earnings quality or share-count-related complexity that warrants caution.
Why Buy Graham Holdings Co Stock? GHC Key Strengths
- Strong liquidity position with 1.75x current ratio and $267M cash reserves
- Conservative leverage (0.15x debt/equity) and excellent interest coverage (12.2x) provide financial flexibility
- Solid free cash flow generation ($275.3M) covers 376% of capital expenditures, indicating sustainable dividend/reinvestment capacity
- Diversified educational services platform with $8.4B asset base
- Strong balance sheet with low debt-to-equity of 0.15x and healthy liquidity at 1.75x current ratio
- Consistent cash generation with $347.19M in operating cash flow and $275.30M in free cash flow
- Good debt servicing capacity with interest coverage of 12.2x
GHC Stock Risks: Graham Holdings Co Investment Risks
- Stagnant earnings growth with net income rising only 0.6% YoY despite 2.5% revenue growth, indicating margin pressure
- Significant diluted EPS decline of 59.3% YoY suggests share count expansion or one-time charges negatively impacting per-share value
- Modest profitability ratios (6.0% net margin, 3.5% ROA, 6.1% ROE) indicate limited operational efficiency and competitive positioning
- Muted organic growth trajectory in core business lines
- Low-margin profile limits earnings power and reduces flexibility if operating conditions weaken
- Revenue and net income growth are modest, indicating limited near-term expansion momentum
- Diluted EPS fell 59.3% year over year despite flat net income, raising questions about earnings quality or capital structure changes
Key Metrics to Watch
- Operating margin expansion/contraction to assess pricing power and cost discipline
- Free cash flow sustainability and conversion efficiency amid capital deployment decisions
- Share dilution trends and impact on future earnings per share accretion
- Revenue growth acceleration in core educational services segments
- Operating margin trend
- Free cash flow growth
Graham Holdings Co (GHC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Graham Holdings Co presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
GHC Profit Margin, ROE & Profitability Analysis
GHC vs Services Sector: How Graham Holdings Co Compares
How Graham Holdings Co compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Graham Holdings Co Stock Overvalued? GHC Valuation Analysis 2026
Based on fundamental analysis, Graham Holdings Co has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Graham Holdings Co Balance Sheet: GHC Debt, Cash & Liquidity
GHC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Graham Holdings Co's revenue has grown significantly by 54% over the 5-year period, indicating strong business expansion. The most recent EPS of $43.82 reflects profitable operations.
GHC Revenue Growth, EPS Growth & YoY Performance
GHC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.2B | $72.5M | $16.42 |
| Q2 2025 | $1.2B | -$21.0M | $-4.79 |
| Q1 2025 | $1.2B | $23.9M | $5.45 |
| Q3 2024 | $1.1B | -$23.0M | $-5.02 |
| Q2 2024 | $1.1B | -$21.0M | $-4.79 |
| Q1 2024 | $1.0B | $52.3M | $10.88 |
| Q3 2023 | $1.0B | -$23.0M | $-5.02 |
| Q2 2023 | $933.3M | $28.1M | $5.74 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Graham Holdings Co Dividends, Buybacks & Capital Allocation
GHC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Graham Holdings Co (CIK: 0000104889)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775161159.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775161103.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775161045.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775160978.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/wk-form4_1775160920.xml | View → |
❓ Frequently Asked Questions about GHC
What is the AI rating for GHC?
Graham Holdings Co (GHC) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GHC's key strengths?
Claude: Strong liquidity position with 1.75x current ratio and $267M cash reserves. Conservative leverage (0.15x debt/equity) and excellent interest coverage (12.2x) provide financial flexibility. ChatGPT: Strong balance sheet with low debt-to-equity of 0.15x and healthy liquidity at 1.75x current ratio. Consistent cash generation with $347.19M in operating cash flow and $275.30M in free cash flow.
What are the risks of investing in GHC?
Claude: Stagnant earnings growth with net income rising only 0.6% YoY despite 2.5% revenue growth, indicating margin pressure. Significant diluted EPS decline of 59.3% YoY suggests share count expansion or one-time charges negatively impacting per-share value. ChatGPT: Low-margin profile limits earnings power and reduces flexibility if operating conditions weaken. Revenue and net income growth are modest, indicating limited near-term expansion momentum.
What is GHC's revenue and growth?
Graham Holdings Co reported revenue of $4.9B.
Does GHC pay dividends?
Graham Holdings Co pays dividends, with $0.4M distributed to shareholders in the trailing twelve months.
Where can I find GHC SEC filings?
Official SEC filings for Graham Holdings Co (CIK: 0000104889) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GHC's EPS?
Graham Holdings Co has a diluted EPS of $66.47.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GHC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Graham Holdings Co has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GHC stock overvalued or undervalued?
Valuation metrics for GHC: ROE of 6.1% (sector avg: 16%), net margin of 6.0% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy GHC stock in 2026?
Our dual AI analysis gives Graham Holdings Co a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GHC's free cash flow?
Graham Holdings Co's operating cash flow is $347.2M, with capital expenditures of $71.9M. FCF margin is 5.6%.
How does GHC compare to other Services stocks?
Vs Services sector averages: Net margin 6.0% (avg: 10%), ROE 6.1% (avg: 16%), current ratio 1.75 (avg: 1.5).