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MHMcGraw Hill, Inc.Hold5.2·$13.10-3.46%
HoldHigh Confidence
Investment thesis

McGraw Hill presents an unusual combination of deeply depressed valuation and a three-quarter earnings-beat streak, yet a confirmed death cross, declining revenue, and a risk composite far below the minimum acceptable level mean the technical and risk profile fully overrides the fundamental appeal, keeping new capital on the sidelines.

Thesis pillars

  • Deep Value Analyst GapDeteriorating
  • Exceptional Cash ConversionStable
  • Earnings Beat ConsistencyImproving
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

McGraw Hill, Inc. (MH) Stock Analysis

Recovery setup

HoldVALUE-TRAP 1/5GrowthShortHigh Confidence

Consumer Defensive · Education & Training Services

Hold if already holding. Not a fresh buy at $13.10, but acceptable to hold if already in. Reasons: Leverage penalty (D/E 3.7): -1.5; Weak growth.

McGraw Hill provides educational content and digital learning platforms for K-12, higher education, and professional markets in more than 100 countries and 80 languages. Revenue totaled $2,102.8 million for fiscal 2026 (ended March 31, 2026), split between K-12 (~42%), Higher... Read more

$13.10+19.0% A.UpsideScore 5.2/10#16 of 19 Education & Training Services
QualityF-score6 / 9FCF yield11.64%
Stop $12.18Target $15.59(analyst − 13%)A.R:R 1.3:1
Analyst target$17.92+36.8%12 analysts
$15.59our TP
$13.10price
$17.92mean
$23

Hold if already holding. Not a fresh buy at $13.10, but acceptable to hold if already in. Reasons: Leverage penalty (D/E 3.7): -1.5; Weak growth. Chart setup: Death cross but MACD improving, RSI 78. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Score 5.2/10, high confidence.

Passes 6/8 gates (positive momentum, clean insider activity, no SEC red flags, earnings proximity no date, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-08-15
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Thu, Aug 13, 2026· next earnings call

Thesis

Rewards
Strong earnings beat streak (3/4)
Positive news sentiment (+0.77)
Attractive valuation
Risks
Leverage penalty (D/E 3.7): -1.5
Weak growth
Elevated risk factors

Key Metrics

P/E (TTM)61.7
P/E (Fwd)6.6
Mkt Cap$2.6B
EV/EBITDA8.0
Profit Mgn1.7%
ROE7.0%
Rev Growth-2.0%
Beta
DividendNone
Rating analysts21

Quality Signals

Piotroski F6/9

Options Flow

P/C1.46bearish
IV101%elevated

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

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Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

3 floor-breakers

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Growth Rank
0.6
Quality Rank
2.0
Value Rank
3.5

Revenue shrinking — -2.0% YoY. Growth thesis broken unless recovery story develops.static

Revenue Growth
2.0
Declining revenue: -2%
Low model confidence on this dimension (33%).

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

Bollinger
0.6
Support Resistance
1.2
52w Position
4.6
GatesA.R:R 1.3 < 1.5@spotDeath cross (50MA < 200MA)Momentum 6.9>=5.5Insider activity: OKNo SEC red flagsEARNINGS PROXIMITY NO DATESEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRecoverySuitability: Aggressive
RSI
78 · Overbought
20D MA 50D MA 200D MADEATH CROSSSupport $8.97Resistance $13.67

Price Targets

$12
$16
A.Upside+19.0%
A.R:R1.3:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! NEWS_MOD=+2: SELL_IF_HOLDING → HOLD_IF_HOLDING
! asymmetry at 1.3 (below the engine's 1.5 threshold)@spot

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-08-13 (nulld)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is MH stock a buy right now?

Hold if already holding. Not a fresh buy at $13.10, but acceptable to hold if already in. Reasons: Leverage penalty (D/E 3.7): -1.5; Weak growth. Chart setup: Death cross but MACD improving, RSI 78. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Target $15.59 (+19.0%), stop $12.18 (−7.6%), A.R:R 1.3:1. Score 5.2/10, high confidence.

What is the MH stock price target?

Take-profit target: $15.59 (+19.0% upside). Target $15.59 (+19.0%), stop $12.18 (−7.6%), A.R:R 1.3:1. Stop-loss: $12.18.

What are the risks of investing in MH?

Leverage penalty (D/E 3.7): -1.5; Weak growth; Elevated risk factors.

Is MH overvalued or undervalued?

McGraw Hill, Inc. trades at a P/E of 61.7 (forward 6.6). TrendMatrix value score: 7.9/10. Verdict: Hold.

What do analysts say about MH?

21 analysts cover MH with a consensus score of 4.2/5. Average price target: $18.

What does McGraw Hill, Inc. do?McGraw Hill provides educational content and digital learning platforms for K-12, higher education, and professional...

McGraw Hill provides educational content and digital learning platforms for K-12, higher education, and professional markets in more than 100 countries and 80 languages. Revenue totaled $2,102.8 million for fiscal 2026 (ended March 31, 2026), split between K-12 (~42%), Higher Education (~42%), Global Professional (~7%), and International (~9%), with 26.7 million paid digital users.

Related stocks: TAL (TAL Education Group) · LAUR (Laureate Education, Inc.) · PXED (Phoenix Education Partners, Inc) · CVSA (Covista Inc.) · COUR (Coursera, Inc.)
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