MHMcGraw Hill, Inc.
Is the business good?
A genuinely good business: 7 of 9 health tests passed and earnings fully cash-backed (1.8×).
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is MH?
McGraw Hill, Inc. earns 7.3% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 1.7 points below what the capital costs: growth destroys value
- Operating margin
- 14%
Operating margin · Education & Training Services median 13% · 12 months to Q1 2027
- Cash conversion
- 1.84×
Cash conversion · 2.14× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +15%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2024 | 7.9% |
| FY2025 | 15% |
| FY2026 | 13% |
Details›
- Gross margin12 months to Q1 2027
- 82%
- Operating margin12 months to Q1 2027
- 14%
- Net margin12 months to Q1 2027
- 4.4%
- Free cash flow margin
- 16%
- R&D as % of revenue
- 13%
- Revenue, trailing twelve months
- $2.12B
- Free cash flow, trailing twelve months
- $336M
- Net income, trailing twelve months
- $93M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.3%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Education & Training Services
The closest names by size in the same industry