McGraw Hill Inc. Common Stock (MH) : juste valeur

Thèse ACCE

McGraw Hill sells K-12 digital curriculum, assessment and learning platforms, including ALEKS and its Imagine Math and reading programs, along with higher-education course materials and professional certification and training. Its moat rests on embedded adoption: district contracts and course-adoption cycles are sticky, and an 81.7% gross margin says the content and software are doing most of the work. The near-term driver is the shift from printed to digital and subscription-based instructional materials, which supports a 2.6% revenue growth rate, modest but steady for a business with this margin profile. The stock looks more interesting on forward earnings, at 17.5 times against a trailing 29.6, which implies earnings are expected to rise sharply as amortization and one-time costs fade. A 21.5% operating margin and 17.3% return on equity support that view, though the 2.6% top-line growth means the case depends on margin expansion rather than volume, which is worth testing before going further.