Is the business good?
How good a business is MH?
McGraw Hill, Inc. earns 7.2% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
7.2%
Return on invested capital · cost of capital 9.0% · 1.8 points below what the capital costs: growth destroys value
- Operating margin
- 13%
Operating margin · Education & Training Services median 13% · 12 months to Q4 2026
- R&D as % of revenue
- 13%
R&D as % of revenue
- Gross margin
- 81%
Gross margin
| Year | Operating margin |
|---|---|
| FY2024 | 7.9% |
| FY2025 | 15% |
| FY2026 | 13% |
Details›
- Gross margin12 months to Q4 2026
- 81%
- Operating margin12 months to Q4 2026
- 13%
- Net margin12 months to Q4 2026
- 1.7%
- Free cash flow margin
- 12%
- R&D as % of revenue
- 13%
- Revenue, trailing twelve months
- $2.10B
- Free cash flow, trailing twelve months
- $246M
- Net income, trailing twelve months
- $35M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Education & Training Services
Ranks #16 of 16 by Smart Score