McGraw Hill, Inc. (MH) AI Stock Analysis

• Market Cap: $2.39B
• Dividend Yield: N/A
• Average Volume (3M): 852.21K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.76
• Revenue Growth: 6.65%
• EPS Growth: 55.58%
• Country: US
• Employees: 4,200
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.00
• Shares Outstanding: 191,001,530
• 10 Day Avg. Volume: 531,689
• 30 Day Avg. Volume: 852,213
• PEG Ratio: 0.68
• Price to Book (P/B): 11.59
• Price to Sales (P/S): 1.55
• P/FCF Ratio: 6.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $20.27
• Price Target Upside: 59.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 48 Neutral
• Price Target: $12.50 ▼(-1.57% Downside)

McGraw Hill, Inc.'s overall stock score is primarily impacted by its financial performance, which shows strong revenue growth but significant profitability and leverage challenges. Technical analysis indicates neutral to bearish momentum, while valuation metrics are unattractive due to negative earnings and lack of dividends. The absence of earnings call data and notable corporate events limits additional insights.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for McGraw Hill's educational products and services, suggesting effective market strategies and product offerings that can sustain long-term business expansion.

Operational Efficiency

Healthy EBIT and EBITDA margins demonstrate operational efficiency, indicating that McGraw Hill effectively manages its costs, which can support profitability improvements over time.

Cash Generation

Improved operating cash flow indicates better cash generation, which is crucial for funding operations, reducing debt, and investing in growth opportunities, enhancing financial stability.

Negative Factors

High Debt Levels

Significant leverage poses financial risks, as high debt levels can strain cash flow and limit financial flexibility, potentially impacting long-term stability and growth.

Profitability Challenges

Ongoing profitability challenges, as indicated by a negative net profit margin, suggest difficulties in converting revenue into profit, which can hinder long-term financial health and shareholder returns.

Free Cash Flow Issues

Negative free cash flow growth highlights potential cash flow challenges, which could affect the company's ability to invest in growth initiatives and manage financial obligations effectively.

McGraw Hill, Inc. Business Overview & Revenue Model

Company Description

McGraw Hill, Inc. is a leading educational content and technology company that provides innovative learning solutions across various sectors, including K-12 education, higher education, and professional learning. The company offers a wide range of products and services, including textbooks, digital learning platforms, assessment tools, and educational software, aimed at enhancing the teaching and learning experience. With a strong focus on leveraging technology, McGraw Hill integrates digital resources and analytics into its offerings, making education more accessible and effective for students and educators alike.

How the Company Makes Money

McGraw Hill generates revenue primarily through the sale of educational materials and services across its various sectors. Key revenue streams include the sale of print and digital textbooks, subscription services for digital learning platforms, and licensing fees for educational content. Additionally, the company earns money from assessment products and services, including standardized testing solutions. McGraw Hill also engages in strategic partnerships with educational institutions and technology providers, which can enhance its product offerings and expand its market reach, contributing further to its earnings. The ongoing transition towards digital learning solutions and the increasing demand for educational technology also play a significant role in driving the company's revenue growth.

McGraw Hill, Inc. Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023
Income Statement
Total Revenue	1.01B	2.10B	1.96B	1.95B
Gross Profit	807.20M	1.68B	1.54B	1.48B
EBITDA	343.07M	669.16M	571.18M	495.71M
Net Income	-156.37M	-85.84M	-193.02M	-404.10M
Balance Sheet
Total Assets	5.66B	5.76B	5.81B	6.07B
Cash, Cash Equivalents and Short-Term Investments	247.33M	389.83M	203.62M	181.47M
Total Debt	3.26B	3.26B	3.53B	3.59B
Total Liabilities	5.38B	5.48B	5.44B	5.51B
Stockholders Equity	283.26M	280.24M	368.75M	558.13M
Cash Flow
Free Cash Flow	-234.87M	485.22M	79.55M	116.06M
Operating Cash Flow	-137.84M	646.28M	236.16M	256.62M
Investing Cash Flow	-103.04M	-167.06M	-136.11M	-162.32M
Financing Cash Flow	-62.16M	-294.68M	-77.24M	-204.57M

McGraw Hill, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LOPE	―	$6.13B	26.47	30.77%	―	6.52%	11.72%
TAL	―	$7.66B	74.16	2.88%	―	48.03%	97.15%
EDU	―	$9.85B	26.57	10.03%	―	13.86%	21.74%
UDMY	―	$1.02B	―	-12.62%	―	3.93%	63.52%
COUR	―	$1.51B	―	-7.43%	―	8.10%	43.35%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
MH	―	$2.39B	―	―	―	6.65%	55.58%

McGraw Hill, Inc. Corporate Events

McGraw Hill Announces $150 Million Loan Prepayment

On October 16, 2025, McGraw Hill, Inc. announced a $150 million prepayment of its term loan, reducing the outstanding balance to approximately $618 million. This move is part of the company’s ongoing efforts to deleverage and strengthen its financial position, resulting in expected annualized cash interest savings of over $40 million. The company emphasizes its commitment to financial discipline and achieving a net leverage target of 2-2.5x, reflecting the strength of its business and strategic focus on debt reduction.

The most recent analyst rating on (MH) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on McGraw Hill, Inc. stock, see the MH Stock Forecast page.

McGraw Hill Amends Credit Agreement to Reduce Rates

On September 8, 2025, McGraw-Hill Education, Inc., a subsidiary of McGraw Hill, Inc., amended its Credit Agreement to reduce the interest rate by 50 basis points, with a potential further reduction of 25 basis points based on credit ratings. This repricing follows the company’s initial public offering in July 2025, where it prepaid $385 million of its term loan, reducing annualized interest expenses by over $30 million. The move is part of McGraw Hill’s strategy to optimize its capital structure and strengthen its balance sheet by reducing debt and cash interest obligations.

The most recent analyst rating on (MH) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on McGraw Hill, Inc. stock, see the MH Stock Forecast page.

McGraw Hill Plans Repricing of Term Loan Facility

McGraw Hill, Inc. announced plans to amend its senior secured first lien term loan facility due 2031 to reprice the existing term loans. A meeting with lenders is scheduled for September 2, 2025, to discuss this repricing transaction, which is contingent on market conditions and may not proceed as planned. This move could impact the company’s financial strategy and market positioning, potentially affecting stakeholders involved in the credit agreement.

The most recent analyst rating on (MH) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on McGraw Hill, Inc. stock, see the MH Stock Forecast page.

McGraw Hill Reports Strong Q1 2026 Results

McGraw Hill, Inc. is a prominent global provider of educational solutions, offering a range of information solutions across preK-12, higher education, and professional learning sectors. The company is known for its commitment to personalized learning experiences and innovative use of technology to enhance educational outcomes.