McGraw Hill Inc. Common Stock (MH)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

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

I look at McGraw Hill as a turnaround, not a franchise. The Lynch-style tag is accurate: after losses in fiscal 2025 and fiscal 2024, it earned $35.3M in fiscal 2026, year ended 2026-03-31, on $2.1B revenue, and the latest filed quarter, fiscal Q1 2027 ended 2026-06-30, showed $549.9M revenue and $57.9M net income, or $0.30 diluted EPS. That is real improvement. Free cash flow of $205.3M, an 8.0% FCF yield at the 2026-10-13 close per FairStock, is the most attractive figure. But quality is questionable: revenue growth is only 2.65%, FairStock calculations put ROCE at 3.90%, and the balance sheet has D/E of 3.37. The Altman Z-Score of 0.14 signals financial fragility, while Piotroski F-Score 5/9 is middling. FairStock's ROE of 17.30% looks good but may be flattered by leverage. Valuation is not obviously cheap. At the 2026-10-13 close of $13.42, FairStock calculations show P/E 27.39, P/B 3.26, and a Graham Number of $6.74, a negative margin of safety of -99.11%. EV/EBITDA of 7.26 is more reasonable. A turnaround can work if profits persist, but I would require a margin of safety and evidence that the latest profit is recurring, not accounting noise. Education has switching costs, but AI and open resources threaten content advantages. I would want consistent cash generation and debt reduction before calling this a bargain.

In plain English: McGraw Hill sells learning materials and digital education products to schools, colleges, and professionals. The company has moved from losses to a profit and produces positive cash, but it carries a lot of debt and its revenue is growing slowly. At $13.42, the stock looks expensive compared with its accounting value and a simple value estimate, though its cash generation makes the picture mixed.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-06-30) · fiscal Q3 2026 10-Q (period ended 2025-12-31) · fiscal Q2 2026 10-Q (period ended 2025-09-30) · fiscal Q1 2026 10-Q (period ended 2025-06-30) · FY2026 10-K (period ended 2026-03-31) · FY2025 10-K (period ended 2025-03-31) · FY2024 10-K (period ended 2024-03-31)

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