Graham Holdings Company Common Stock (GHC)

FairStock Score: 45/100 — MIXED

Key Financials

Strengths

• Generates $234 million in annual free cash flow (4.7% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.30, providing financial flexibility
• Established organization with 12,747 employees providing operational scale

AI Analysis

Graham Holdings Company Common Stock is a small-cap consumer defensive company valued at $4.9 billion. Revenue stands at $4.9 billion. From a quality standpoint, Graham shows Altman Z-Score of 2.5 in the grey zone and modest 6% ROE. On valuation, the stock is reasonably priced at 17.0x earnings, with a modest 11% margin of safety vs Graham Number. Growth dynamics show revenue growing at 0.4% and profit growth of -80.2%. Our composite FairStock Score of 45/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $234 million in annual free cash flow (4.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the consumer defensive space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer