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Our Company McGraw Hill is a leading global provider of education solutions for K-12, higher education and professional learning markets. We are helping shape the education industry by providing access to effective learning experiences that improve outcomes and opportunities for all.
Margins and capital returns are both well above average: 50.24% operating margin, ROIC at 30.28%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue growth slowed to 0.1%, essentially flat. This is a business that needs a catalyst.
Free cash flow declined 57% versus the prior year, cash generation momentum has weakened. ROIC dropped from 48.74% to 30.28%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$2.10B
Net Income (TTM)
$35M
▲ +141.1% YoY
Op. Margin
50.24%
▲ +0.3pp YoY
ROIC
30.28%
▼ -18.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$246M
▼ -57.2% YoY
Op. Cash Flow (TTM)
$331M
▼ -48.8% YoY
Net Debt
$2.40B
Cash & Equiv.
$254M
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