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what it is
Graham Holdings owns education, TV stations, healthcare, manufacturing, and other businesses under one corporate roof.
how it gets paid
Last year Graham made $4.9B in revenue.
why it's growing
Revenue grew 2.5% last year. Third-quarter 2025 revenue still rose 5.9% to $1.279 billion.
what just happened
The latest report was a miss, with EPS at $11.45 versus a $13.75 estimate.
At a glance
B+ balance sheet — decent shape, but not bulletproof
70/100 earnings predictability — reasonably predictable
20.7x trailing p/e — priced about right
0.7% dividend yield — cash in your pocket every quarter
6.5% return on capital — nothing to write home about
xvary composite: 57/100 — below average
What they do
Graham Holdings owns education, TV stations, healthcare, manufacturing, and other businesses under one corporate roof.
Its edge is not glamour. It is spread. When one unit slows, another can carry the load. Healthcare revenue jumped 34% to $208.4 million in the 2025 third quarter, while total quarterly sales rose 5.9% to $1.279 billion. You also have insiders owning 23.1% of Class B shares, and debt is just $307 million, or 6% of capital.
How they make money
$4.9B
annual revenue · their business grew +2.5% last year
total revenue
$4.9B
+2.5%
The products that matter
education services
Education services
part of $4.9B revenue
one of the core operations inside a $4.9B company that grew 2.5% from last year. The point is diversification, not a single breakout engine.
core operation
television broadcasting
Television broadcasting
part of $4.9B revenue
broadcasting adds another cash flow source inside the same $4.9B base. The catch is that companywide net margin was 5.7%, so the mix has not produced standout profitability.
cash flow source
healthcare and manufacturing
Healthcare and manufacturing
part of $4.9B revenue
these businesses spread exposure across end markets, but the group still earned only 6.5% on capital. You own breadth more than operating magic.
diversifier
Key numbers
$1,440
18-month target
The average analyst target sits about 30% above $1,111.03. So your upside case needs investors to pay more for the bundle than they do today.
20.7x
trailing p/e
Price-to-earnings → how much you pay for each dollar of profit → so what: you are not buying this like a distressed asset.
6.5%
return on capital
Return on capital → profit earned on money invested in the business → so what: this is okay, not elite.
6%
debt load
Debt as a share of capital is just 6%, which means balance-sheet risk is low even if one unit stumbles.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 75 / 100
- long-term debt $307M (6% of capital)
- net profit margin 5.7% — keeps 6 cents of every dollar in revenue
- return on equity 6% — $0.06 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in GHC 3 years ago → it's now worth $19,180.
The index would have given you $13,920.
source: institutional data · total return
What just happened
missed estimates
The latest report was a miss, with EPS at $11.45 versus a $13.75 estimate.
Third-quarter 2025 revenue still rose 5.9% to $1.279 billion. Healthcare did the heavy lifting, with sales up 34% to $208.4 million.
$1.279B
revenue
$11.45
eps
9.0%
gross margin
the number that mattered
The miss was 16.7%, which tells you the issue is not growth alone. It is forecast reliability.
-
graham holdings generated mixed results in the 2025 third quarter, which fell modestly below our expectations.
-
the diversified conglomerate improved sales by 5.9%, vs. prior year, to $1.279 billion, just shy of our $1.285 billion estimate.
-
leading the way in terms of growth was the healthcare segment, which saw sales jump 34%, over the same span, to $208.4 million.
-
in fact, this business is rapidly becoming one of graham’s most valuable assets.
-
following that, the manufacturing division showed recovery, advancing the top line by 30%, to $124.3 million, which helped offset struggles earlier in the year.
source: company earnings report, 2026
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What could go wrong
The main risk in Graham Holdings is portfolio stagnation across education, broadcasting, healthcare, and manufacturing. This is not a one-product blowup story. It is a multi-business company getting stuck at okay.
high
stagnation becomes the whole story
Revenue rose 2.5% from last year. Return on capital was 6.5%. Those are workable numbers, not rerating numbers.
If growth slips back while margins stay near 5.7%, the stock starts looking expensive for a company with no clear premium segment on display.
high
legal and regulatory issues spread across several business lines
One external risk screen flagged Legal & Regulatory as the top category. That fits a company operating in education, broadcasting, and healthcare at the same time.
One headache under one roof can pull management time away from the rest of the portfolio. Conglomerates diversify earnings, not attention.
med
cash flow sensitivity gets more painful in a thin-margin business
A Feb. 24, 2026 market item pointed to near-term cash flow pressure. The excerpt itself was weak. The warning still fits the numbers.
At a 5.7% net margin, even modest operating slippage shows up in earnings fast.
med
the market keeps applying a conglomerate discount
You own several businesses, not one clean growth narrative. Diversification helps on the downside, but it also makes it harder for investors to pay a premium multiple.
20.7x earnings is already a fair price for a company growing 2.5% from last year. Without better mix or better margins, upside leans on patience.
When $4.9B of revenue produces a 5.7% net margin and a 6.5% return on capital, the big risk is not collapse. It is several more years of results that are fine and nothing more.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings report
the date is not listed in this feed. What matters is whether revenue gets above the $5B estimate and whether net margin moves off 5.7%.
metric
return on capital above 6.5%
this is the number that tells you whether the collection of businesses is getting sharper or just staying broad.
risk
legal and regulatory noise
outside risk screens already flag this as the top category. If headlines keep clustering here, the discount to cleaner stories will stick.
trend
institutional flow turning positive
135 buyers versus 147 sellers in 3q2025 is mixed demand. You want to see that balance move the other way if the market starts buying the improvement case.
Analyst rankings
earnings predictability
70 / 100
in human-speak, the business mix smooths some volatility, but you should still expect a few turns.
valuation
20.7x
you are paying a market-like multiple for a company that grew 2.5% from last year.
balance sheet
B+
debt is not the problem. Business quality is the debate.
source: institutional data
Institutional activity
135 buyers vs. 147 sellers in 3q2025. total institutional holdings: 2.7M shares.
source: institutional data
Price targets
3-5 year target range
$610
$1391
$1111
current price
$1440
target midpoint · +30% from current · 3-5yr high: $1730 (+55% · 12% ann'l return)
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