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Graham Holdings Company (the Company) is a diversified holding company whose operations include educational services, television broadcasting, manufacturing, healthcare, automotive dealerships and other businesses. Through Kaplan, Inc. (Kaplan), the Company provides a wide variety of educational services to students, schools, colleges, universities and businesses, both domestically and outside …
Operating margin is thin at 4.78%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue growth slowed to 2.5%, essentially flat. This is a business that needs a catalyst.
Free cash flow declined 15% versus the prior year, cash generation momentum has weakened.
Profitability & Returns
Revenue (TTM)
$4.91B
▲ +2.5% YoY
Net Income (TTM)
$292M
▼ -59.7% YoY
Op. Margin
4.78%
▲ +0.3pp YoY
ROIC
3.20%
Cash Flow & Balance Sheet
FCF (TTM)
$275M
▼ -15.0% YoY
Op. Cash Flow (TTM)
$347M
▼ -14.7% YoY
Net Debt
$1.08B
Cash & Equiv.
$267M
5Y CAGR: +11.2%
5Y CAGR: +14.3%
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