| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 83 | 25.1x | 17.8x | Top tier | |
Growth | 44 | 0.7% | 7.1% | Around median | |
Quality | 87 | 8.1% | 4.5% | Top tier | |
Safety | 29 | 4.3x | 2.6x | Bottom tier | |
Capital Return | 94 | — | 2.12% | Top tier | |
Momentum | 30 | -24.9% | 2.9% | Bottom tier | |
Sentiment | 93 | 9 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
McGraw Hill provides educational content, curricula, assessment tools, and digital learning solutions for higher education, pre-K–12, medical and professional education, and international markets. Its revenue model relies on curriculum licenses, multi-year contracts, and services such as Inclusive Access, Evergreen, and Connect, along with AI-powered tools that can be sold on top of existing curriculum licenses; the company has more than 100 million active curriculum licenses and more than 7.5 million users of its AI-powered solutions. In fiscal 2027 Q1, recurring revenue represented 77% of the total, while digital revenue represented 64%, enhancing revenue predictability compared with full reliance on seasonal book sales.
Fiscal 2027 Q1 revenue was approximately $550 million, up 2.6% year over year, while recurring revenue rose approximately 9.8% to $426 million and digital revenue grew approximately 9%. The company recorded net income of $58 million and adjusted earnings before interest, taxes, depreciation, and amortization of $207 million, with a margin of 37.7%, up 192 basis points; excluding the benefit from an intellectual property sale, the margin improvement was 60 basis points. For comparison with the reported financial statements, fiscal 2026 trailing-twelve-month revenue was approximately $2.1 billion, gross profit was $1.7 billion, and net income was $49.9 million.
The Higher Education segment led fiscal 2027 Q1 results with revenue of $200 million and growth of 10%, while the pre-K–12 segment remained the largest, with revenue of $274 million and growth of 1.3%. Global Professional generated revenue of $35 million, 80% of which was related to medical education, and the International segment recorded $45 million despite shipment delays related to the Middle East conflict. This mix shows that the fastest growth came from higher education, while the pre-K–12 segment remained central to results and a significant source of seasonality.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is “Buy,” with an average target of $16.14 and a range between $14 and $17; the average is only $1.86 below the 52-week range high of $18, while the highest target is $1 below it. A price-to-earnings ratio is unavailable in the provided data, limiting traditional earnings-based comparison, and analyst targets should be weighed against fiscal 2026 trailing-twelve-month net income of $49.9 million and the fact that fiscal 2027 guidance remained unchanged after the strong first quarter.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Revenue reached $550 million in fiscal 2027 Q1, up 2.6% year over year, while net income reached $58 million. Recurring revenue rose 9.8% to $426 million, and digital revenue grew nearly 9%, increasing their contributions to 77% and 64% of revenue, respectively. Higher Education led growth with a 10% increase to $200 million, while pre-K–12 segment revenue rose 1.3% to $274 million. Adjusted earnings before interest, taxes, depreciation, and amortization were $207 million, with a margin of 37.7%.
McGraw Hill sells AI-powered learning tools on top of a base exceeding 100 million curriculum licenses, rather than relying only on free users. As of August 13, 2026, it had 8 live tools serving more than 7.5 million active users, with 3 additional launches planned during fiscal 2027. AI Reader recorded approximately 63 million interactions among 2.6 million users, and management explained that some customers pay additional fees for tools such as Sharpen or for AI and MCP access. The agentic solutions pilot also included more than 14 companies using chatbots and various open-source tools.
Early capture rates for Emerge, Summit, and Soar exceeded the company’s target of 25% to 30%, within an adoption cycle related to the Science of Reading methodology. As of August 13, 2026, 44 states representing 86% of pre-K–5 enrollment had mandated methodologies based on this approach, while the California cycle begins in fiscal 2028. ROAR adds multilingual dyslexia screening across all pre-K–12 grades in a market where 40 states require screening. Management confirmed that ROAR is a paid product that can be added to the reading programs or sold independently.
The company reduced total debt by $646 million during fiscal 2026, lowering annual cash interest expense by approximately $45 million. At the end of fiscal 2027 Q1, it had $194 million in cash and $644 million in total liquidity, while the revolving credit facility remained undrawn. Moody’s upgraded the company’s credit ratings in July 2026, and management maintained its net leverage target of 2 to 2.5 times. The $50 million share repurchase authorization also remained in place, with priority given to organic investment followed by debt reduction.
Results depend heavily on the back-to-school season, school district decisions, and higher education student enrollment data, so management kept its guidance unchanged after fiscal 2027 Q1. Guidance assumed 1% growth in higher education enrollment, while part of the pre-K–12 segment’s outperformance was merely a shift in shipments from July to June 2026. Some supplemental and intervention solution decisions were also delayed, and aggregate capture rates remained affected by performance in California and Texas. In the International segment, the Middle East conflict delayed shipments to fiscal 2027 Q2 or Q3, alongside enrollment pressure in Canada.
Analyst consensus rates MH stock as “Buy,” with an average target of $16.14, a low target of $14, and a high target of $17. The average is close to the 52-week range high of $18, and a price-to-earnings ratio is unavailable in the provided data for directly assessing the stock based on earnings. The company generated net income of $49.9 million during the fiscal 2026 trailing twelve months, but management did not raise fiscal 2027 guidance after the first quarter. The targets therefore reflect optimism about recurring and digital growth and the curriculum cycle, with clear sensitivity to shipment seasonality, adoption decisions, and enrollment.
