McGraw Hill, Inc. (MH)

Price$12.75Cached quoteAs of 2026-09-08 22:48 UTC

AI: Fair-priced

Price checkAt roughly eight times yearly cash earnings before interest, the shares look reasonably valued, not obviously cheap.

Using the observed quote and about 191.3 million shares, the equity value is approximately $2.4 billion. Adding about $2.64 billion of debt and subtracting $194 million of cash gives enterprise value near $4.9 billion. Last-twelve-month EBITDA—earnings before interest, taxes, depreciation, and amortization—was roughly $652 million, or about 7.5 times enterprise value. Last-twelve-month net income was about $93 million, implying roughly 26 times earnings. The debt burden makes this a balanced valuation, supporting Fair-priced.

Big pictureRecurring digital revenue is growing, but total sales remain nearly flat and cash flow swings with the school calendar.

Fiscal 2026 revenue was $2.103 billion, only 0.1% above fiscal 2025, although it rose from $1.948 billion in fiscal 2023. More durable re-occurring revenue increased 5.8% to $1.541 billion, while digital revenue rose 5.5% to $1.434 billion. Operating cash flow fell to $331 million from $646 million, and first-quarter fiscal 2027 cash flow was only $0.6 million because school-year working capital is seasonal. Last-twelve-month cash left after capital spending was roughly $336 million, but timing remains important.

Business strengthThe business is improving, with strong higher education demand and lower debt partly offsetting weak spots.

Higher Education revenue rose 12.3% in fiscal 2026 and 9.6% in the latest quarter, while its recurring revenue grew 14.1% quarterly. K-12 revenue fell 8.9% for fiscal 2026 but returned to 1.3% growth in the latest quarter. Gross margins remain near 81%, and net income turned positive at $35 million in fiscal 2026. Debt fell about $646 million during fiscal 2026, while shares increased only 0.1% year over year; however, $34 million of stock compensation still modestly dilutes owners.

What could change the storyThe upside needs several years of debt reduction and sustained adoption gains; a failed school cycle could erase the cushion.

The bull case is fiscal 2027 guidance of $2.115–$2.175 billion revenue and $750–$790 million adjusted EBITDA, which would reduce the valuation toward roughly 6.3 times enterprise value at the midpoint if debt stays controlled. The bear case is renewed K-12 procurement weakness or weaker international results, pushing EBITDA toward fiscal 2024’s $522 million and lifting the multiple above nine times. Interest expense was still $45.8 million in the latest quarter, and a one-point rate increase would add about $5.5 million annually.

AI: News

Strong first quarterFirst-quarter results beat expectations, strengthening confidence that digital growth and margins can improve during the peak selling season.

On August 13, McGraw Hill reported fiscal first-quarter revenue of $549.9 million, up 2.6% year over year. Re-occurring revenue rose 9.8% to $425.6 million, digital revenue increased 8.8% to $353.5 million, and net income reached $57.9 million versus $0.5 million previously. Adjusted EBITDA rose to $207.0 million from $191.4 million. The figures support higher near-term earnings expectations, although they do not remove seasonal cash-flow swings.

Credit ratings upgradedMoody’s upgraded McGraw Hill’s debt ratings, reducing refinancing concerns as the company continues paying down borrowings.

On July 28, the company announced that Moody’s had raised its corporate family rating to B1 from B2, senior secured ratings to Ba3 from B1, and senior unsecured ratings to B3 from Caa1, with a stable outlook. The upgrade reflects lower debt, reduced interest expense, and improved financial flexibility. It can support cheaper or easier refinancing, but the ratings remain below investment grade and total debt still exceeded $2.6 billion at quarter-end.

Fiscal year turnaroundFiscal 2026 produced positive net income and major debt reduction, but nearly flat sales showed the recovery remains uneven.

On June 11, McGraw Hill reported fiscal 2026 revenue of $2.103 billion, up only 0.1%, while re-occurring revenue grew 5.8% and digital revenue rose 5.5%. Net income improved to $35.3 million from an $85.8 million loss, and gross debt declined by $645.6 million. Management guided to fiscal 2027 revenue of $2.115–$2.175 billion and adjusted EBITDA of $750–$790 million. These targets matter because valuation depends heavily on continued debt reduction.

Loading local price history

Revenue

2023

2024

2025

2026

Net income

2023

2024

2025

2026

Free cash flow

2023

2024

2025

2026

Total cash / debt

CashTotal debt

2023

2024

2025

2026

Financial statements

	2026	2025	2024	2023
Revenue	$2.10B	$2.10B	$1.96B	$1.95B
Gross profit	$1.70B	$1.68B	$1.54B	$1.48B
Gross margin	80.92%	79.90%	78.56%	76.15%
Research & development	$276.3M	$284.4M	$263.4M	$278.1M
Operating expenses	$1.42B	$1.37B	$1.38B	$1.36B
Operating income	$276.8M	$306.8M	$155.3M	$123.8M
Operating margin	13.16%	14.60%	7.92%	6.36%
EBITDA	$638.7M	$669.2M	$521.7M	$495.7M
EBITDA margin	30.37%	31.85%	26.61%	25.45%
Net income	$35.3M	−$85.8M	−$193.0M	−$404.1M
Net profit margin	1.68%	−4.09%	−9.85%	−20.75%
Basic EPSper basic share	$0.19	-$0.52	-$1.16	-$2.12
Diluted EPSper diluted share	$0.19	-$0.52	-$1.16	-$2.12

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈86.35%of listed shares

PLATINUM EQUITY, LLC / Platinum Equity Investment Holdings IC (Cayman), LLC / Gores Tom / Platinum Equity InvestCo, L.P. / Platinum Equity Investment Holdings, LLC / Platinum Equity Investment Holdings V, LLC / PE Mav Holdings, LLC165.16M shares · Jul 23, 2025

View holders

Top 20 reported holders of MH
Holder	% owned
PLATINUM EQUITY, LLC / Platinum Equity Investment Holdings IC (Cayman), LLC / Gores Tom / Platinum Equity InvestCo, L.P. / Platinum Equity Investment Holdings, LLC / Platinum Equity Investment Holdings V, LLC / PE Mav Holdings, LLC	≈86.35%165.16M shares
Platinum Equity Advisors, LLC/DE	86.35%165.16M shares
AMERICAN CENTURY COMPANIES INC	2.34%4.48M shares
BlackBarn Capital Partners LP	1.28%2.45M shares
BlackRock, Inc.	0.91%1.74M shares
JPMORGAN CHASE & CO	0.87%1.67M shares
T. Rowe Price Investment Management, Inc.	0.84%1.6M shares
Alyeska Investment Group, L.P.	0.79%1.51M shares
SCHRODER INVESTMENT MANAGEMENT GROUP	0.70%1.33M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	0.65%1.24M shares
VANGUARD CAPITAL MANAGEMENT LLC	0.64%1.22M shares
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	0.59%1.13M shares
GEODE CAPITAL MANAGEMENT, LLC	0.31%599.61K shares
STATE STREET CORP	0.29%552.37K shares
CITADEL ADVISORS LLC	0.28%544.6K shares
Moyer Philip D	≈0.27%516.77K shares
BARCLAYS PLC	0.26%502.08K shares
HEALTHCARE OF ONTARIO PENSION PLAN TRUST FUND	0.25%475K shares
JANE STREET GROUP, LLC	0.24%462.14K shares
Allen Simon Jonathan	≈0.23%447.71K shares

Percentages use 191.28M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Reported positions exceed 100% in total, so the circle shows the selected holder only.

Source: SEC Form 3 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys7$1.57M disclosed value

Sells (SEC code S)0$0.00 disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 15, 2026Form 4	Moyer Philip DSee Remarks	BuyCommon Stock	22.4K	$11.12	$249.3K	516.8K
Feb 17, 2026Form 4	REINEMUND STEVENDirector	BuyCommon Stock · indirect	58.0K	$13.70	$794.6K	73.7K
Nov 14, 2025Form 4	REINEMUND STEVENDirector	BuyCommon Stock · indirect	15.7K	$15.03	$236.1K	15.7K
Jul 25, 2025Form 4	Cortese DavidEVP & CDIO	BuyCommon Stock	2.5K	$17.00	$42.5K	2.5K
Jul 25, 2025Form 4	Tiska TraceyEVP & CHRO	BuyCommon Stock	4.0K	$17.00	$68.0K	4.0K

Review ownership filings at SEC.gov ↗

Community posts

View community

@tickerstat15 days ago
McGraw Hill proposes $500 million bond issue in broader refinancing
McGraw Hill ($MH) launched a proposed $500 million offering of senior secured notes due in 2033 as part of a wider debt refinancing. The package also contemplates an $830 million first-lien term loan due in 2033, a $150 million revolving fa ...
0
0
@tickerstat23 days ago
McGraw Hill acquires TeachFX to expand AI-assisted teacher coaching
McGraw Hill ($MH) acquired TeachFX, a classroom-audio platform that uses AI to provide teachers with feedback on instructional practices and student participation. The platform is intended to help educators review patterns in classroom conv ...
0
0

McGraw Hill, Inc. (MH)

Financial charts

Financial statements

Owners

Insider buys & sells

Community posts

McGraw Hill proposes $500 million bond issue in broader refinancing

McGraw Hill acquires TeachFX to expand AI-assisted teacher coaching