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MH

MH

MH
$9.70USD↓-0.72%-0.07 today

MARKET CAP

1.9B

P/E (TTM)

—

FWD P/E

—

DAY RANGE

$10 – $10

52W RANGE

$9
$18

AI Summary

Stalk
Sell NowMedium

MH remains in a Stage 4 decline, consistently forming lower highs and lower lows beneath declining EMAs. The medium-term bias is bearish, reinforced by the Stage 4 framework and lack of EMA repair. Short-term timing favors selling as price rejects the 9EMA/21EMA resistance zone. Execution at the EMA resistance aligns with the prevailing downtrend, while a reclaim and sustained hold above those EMAs would invalidate the bearish posture.

  • ↑Higher-ed revenue grew 24% YoY, supporting a 31% market share in FY2026.
  • ↑Digital revenue reached $393M in Q4, representing 85% of total sales.
  • ↓K-12 segment revenue declined 9% YoY to $884 million, signaling market headwinds.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

McGraw-Hill, Inc. (NYSE: MGH) is a leading educational content and digital learning solutions provider, specializing in K-12 and higher education markets. The company has successfully transitioned from traditional publishing to a technology-driven educational model, driven by its commitment to improving learning outcomes through data analytics and artificial intelligence (AI). As a prominent player in the education sector, McGraw-Hill aims to meet the growing demand for personalized learning solutions in an evolving educational landscape.

Bull says

  • ↑Higher-ed revenue grew 24% YoY, supporting a 31% market share in FY2026.
  • ↑Digital revenue reached $393M in Q4, representing 85% of total sales.
  • ↑Launched eight AI learning tools, engaging over 7.5 million users to boost retention.
  • ↑Gross debt reduced by $646 million, targeting net leverage of 2–2.5×.
  • ↑Recurring revenue rose 14.8% YoY to $422 million, comprising 82% of total.
  • ↑Favorable valuation with high earnings yield and strong institutional ownership support.

Bear says

  • ↓K-12 segment revenue declined 9% YoY to $884 million, signaling market headwinds.
  • ↓Profit conversion remains weak, reflecting negative profitability trends in recent quarters.
  • ↓Analyst revisions and momentum factors are negative, indicating downward earnings pressure.
  • ↓Intensifying EdTech competition may erode McGraw-Hill's share in digital education solutions.
  • ↓Parental backlash on screen time threatens K-12 digital adoption and revenue.
  • ↓Balance sheet vulnerability and high stock volatility elevate downside risk.

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 07-01-2026neutral

Transcript signals

Bull points

  • 14% revenue is really a spectacular performance for the group. And when I look back over the last five years, we've grown market share 40% now in higher education. And we stand today, LPM June, at just under 29% market share, which is significant growth.
  • we are feeling very, very bullish.
  • We're seeing some early indicators. One, the first thing we can point to is the strength of the RPO. So you saw that, you can see that on the balance sheet, and we're performing really well with the orders that are coming in. A couple areas, as we mentioned, we're taking share at a greater rate than we initially planned.

Bear points

  • we have only 5% of that market and we are very keen and we fully expect to get significant market share in the years ahead.
  • Total revenue was $271 million, a decrease of 1% year-over-year, as expected. The year-over-year revenue decline in K-12 is anticipated to deepen in the seasonally larger fiscal Q2 due to a more challenging comparison.
  • Net leverage was 4.1 times on an adjusted EBITDA basis at June 30th. In July, We used the net IPO proceeds to pay down term loan, bringing our pro forma net leverage ratio to 3.6 times.
Read full transcript analysis ›