Graham Holdings Company (NYSE:GHC) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of GHC, it is a company with great financial health as well as a an impressive history of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on Graham Holdings here.
Flawless balance sheet with solid track record
In the past couple of years, GHC has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did GHC outperformed its past performance, its growth also exceeded the Consumer Services industry expansion, which generated a 19.41% earnings growth. This paints a buoyant picture for the company. GHC’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that GHC has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. GHC’s has produced operating cash levels of 0.39x total debt over the past year, which implies that GHC’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For Graham Holdings, I’ve compiled three key factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for GHC’s future growth? Take a look at our free research report of analyst consensus for GHC’s outlook.
- Valuation: What is GHC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether GHC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GHC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.