MeritValue

McGraw Hill, Inc.

MHdata completeness 100%3 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

McGraw Hill, Inc. earns about -27% on invested capital, but has diluted owners by 10% over 3 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2024FY 2025FY 2026
Revenue$1.96B1$2.1B1$2.1B1
Net income−$193M2−$85.8M2$35.3M2
Operating cash flow$236.2M3$646.3M3$331.2M3
Capital expenditure$82M4$71.1M4$84.9M4
Free cash flow (derived)$154.2M3$575.2M3$246.3M3
Total debt—$6.34B5$5.13B5
Cash & equivalents$203.6M6$389.8M7$253.5M7
Diluted shares166.6M166.6M183.7M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$39.54
your share of equity
Profit it earned you last year
$1.92
Free cash flow it threw off
$13.41
Debt you’d be carrying
$279.55

10 shares is a claim on $39.54 of net worth that earned you $1.92 and generated $13.41 of cash last year, against $279.55 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-27% avg · 3y
FY24 -80%FY25 0%FY26 1%

It earned an average -27% on invested capital over 3 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+10% shares · 3y

Share count is up 10% over 3 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 19% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$246.3M
DCF · Growth Exit 5Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$246.3M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$4.11
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2024-03-31 · accession 0001951070-26-000022 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2024-03-31 · accession 0001951070-26-000022 (NetIncomeLoss)
  3. 10-K · period ending 2024-03-31 · accession 0001951070-26-000022 (NetCashProvidedByUsedInOperatingActivities)
  4. 10-K · period ending 2024-03-31 · accession 0001951070-26-000022 (PaymentsToAcquirePropertyPlantAndEquipment)
  5. 10-K · period ending 2025-03-31 · accession 0001951070-26-000022 (LongTermDebtNoncurrent)
  6. 10-K · period ending 2024-03-31 · accession 0001951070-26-000022 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  7. 10-K · period ending 2025-03-31 · accession 0001951070-26-000022 (CashAndCashEquivalentsAtCarryingValue)