Graham Holdings Company
GHC Consumer Defensive Education & Training Services
Graham Holdings Company’s revenue for fiscal 2025 (year ended December 2025) was $4.9 billion, up 2.52% from fiscal 2024. In the quarter to June 2026, revenue grew 7.13%, EPS grew 677.3%, free cash flow fell 58.5% and total debt rose 10.3%, each against the same quarter a year earlier. Dividend growth for ten consecutive years, revenue growth for five.
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Graham Holdings Company (GHC) Altman Z-score
Graham Holdings Company's Altman Z-score for fiscal 2025 is 3.01, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 3.01 | 0.01 |
| FY2024 | 3.00 | 0.21 |
| FY2023 | 2.79 | (0.11) |
| FY2022 | 2.89 | 0.36 |
| FY2021 | 2.54 | (0.21) |
| FY2020 | 2.74 | (0.28) |
| FY2019 | 3.02 | (0.84) |
| FY2018 | 3.86 | 0.48 |
| FY2017 | 3.38 | (0.26) |
| FY2016 | 3.64 | 0.15 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.12 | — | 0.15 | |
| Retained earnings / total assets | 0.99 | — | 1.38 | |
| EBIT / total assets | 0.03 | — | 0.09 | |
| Market value of equity / total liabilities | 1.33 | — | 0.80 | |
| Sales / total assets | 0.59 | — | 0.59 | |
| Altman Z-score | Safe zone | 3.01 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 5.64 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| LOPE Grand Canyon Education, Inc. compare | 17.5× |
| PRDO Perdoceo Education Corporation compare | 6.7× |
| LRN Stride, Inc. compare | 5.8× |
| LAUR Laureate Education compare | 4.5× |
| CVSA Covista Inc. compare | 4.2× |
| GHC Graham Holdings Company | 3.0× |
| TAL TAL Education Group compare | 2.8× |
| EDU New Oriental Education & Technology Group, Inc. compare | 2.4× |
| MH McGraw Hill, Inc. compare | 0.5× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets