Graham Holdings Company Common Stock (GHC)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Graham Holdings as a collection of education and training businesses wrapped in a holding-company structure. In fiscal Q2 2026, the quarter ended 2026-06-30, it reported revenue of $1.3 billion, net income of $281.1 million, and diluted EPS of $64.86. That is a dramatic swing from fiscal Q2 2025, when net income was $36.7 million and diluted EPS was $8.35. But I do not extrapolate one quarter. Full-year fiscal 2025, period ended 2025-12-31, produced $4.9 billion of revenue, $292.3 million of net income, and $66.47 of diluted EPS, while fiscal 2024, period ended 2024-12-31, earned $724.6 million, or $163.40 per diluted share. The five-year record is lumpy, and the computed Lynch category is slow grower — shrinking, with profits down 0.5% a year and revenue up 11.2%. At the 2026-10-13 close of $1,173.98, FairStock calculations show a P/E of 9.49, P/B of 1.04, EV/EBITDA of 6.70, and a Graham Number of $1,765.74, implying a 33.51% margin of safety. The balance sheet looks reasonable: D/E of 0.30, Altman Z of 2.74, trailing free cash flow of $248.0 million, and a 4.9% FCF yield. But ROCE of 4.39% and ROE of 11.87% tell me the underlying businesses are not compounding at high rates. I see no obvious wide moat; this is a diversified operator with decent assets and a modest price, but earnings quality and durability need proof.

In plain English: Graham Holdings owns education and training businesses. It is profitable and has manageable debt, but profits have been uneven and long-term profit growth has been weak. At the recent price, the shares look modestly priced compared with the company's earnings and accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer