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MH:NYSEMcGraw Hill, Inc. Analysis

Data as of 2026-05-19 - not real-time

$12.29

Latest Price

7/10Risk

Risk Level: Medium

Executive Summary

McGraw Hill, Inc. is trading below its short‑term moving average while remaining under the longer‑term averages, a pattern that signals a bearish bias on the chart. The relative strength index hovers around the midpoint, suggesting neither strong overbought nor oversold pressure. Meanwhile, the MACD histogram has turned positive, offering a hint of bullish momentum that could spark a short‑term bounce. The stock is perched near a key support level with a clear resistance ceiling a few dollars higher, framing a tight trading range. Volume has been on a downtrend, which may limit price spikes but also reflects waning trader enthusiasm. Beta sits comfortably below one, indicating the share moves less than the broader market, yet the 30‑day volatility is markedly high, pointing to sizable price swings. The DCF model values the company at roughly double the current price, implying a substantial upside, while the market sentiment index is in the “extreme greed” zone, hinting at bullish investor appetite.
Upcoming fiscal fourth‑quarter and full‑year results, slated for early June, are likely to be a catalyst, especially given recent participation in investor conferences that may raise visibility. The lack of a dividend underscores the focus on reinvestment and growth rather than income. Overall, the blend of defensive sector exposure, undervalued fundamentals, and technical ambivalence creates a nuanced picture that warrants careful positioning.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Bearish trend direction with price near support
  • Neutral RSI and modest bullish MACD histogram
  • Imminent earnings release adding uncertainty

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • Significant upside versus DCF fair value
  • Strong gross margins and cash generation
  • Defensive education sector with low beta

Long Term

> 3 years
Positive
Model confidence: 9/10

Key Factors

  • Long‑term undervaluation and growth potential
  • Stable revenue base across K‑12 and higher education
  • Resilient market positioning despite regulatory headwinds

Key Metrics & Analysis

Financial Health

Revenue Growth4.20%
Profit Margin-3.37%
P/E Ratio7.0
ROE-11.76%
ROA3.54%
Debt/Equity348.34
P/B Ratio3.0
Op. Cash Flow$436.1M
Free Cash Flow$519.5M

Technical Analysis

TrendBearish
RSI49.5
Support$11.07
Resistance$14.97
MA 20$12.17
MA 50$13.09
MA 200$14.03
MACDBullish
VolumeDecreasing
Fear & Greed Index89.23

Valuation

Fair Value$30.83
Target Price$20.42
Upside/Downside66.12%
GradeUndervalued
TypeGrowth

Risk Assessment

Beta0.69
Volatility50.53%
Sector RiskLow
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.