McGraw Hill, Inc. cash flow to debt ratio of 12.52% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

McGraw Hill, Inc.'s free cash flow has decreased -73.76% from $485.22M last year to $127.31M, signaling decreasing performance

McGraw Hill, Inc.'s debt to equity ratio is 3.64, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy

McGraw Hill, Inc.'s debt has decreased relative to shareholder equity from 11.62 last year to 3.64 today, signaling strengthened financials

McGraw Hill, Inc. has a net debt to EBITDA ratio of 3.53x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

McGraw Hill, Inc.'s interest coverage ratio is 1.95, which means that the company struggles to meet interest obligations, signaling financial risk.

McGraw Hill, Inc.'s profit margin has increased (-141.12%) in the last year from -4.09% to 1.68%, signaling increasing performance

McGraw Hill, Inc.'s short-term liabilities of $1.27G exceed its short-term assets of $973.65M, signaling financial risk

McGraw Hill, Inc.'s return on assets of 0.64% is lower than the 5.00% threshold, indicating inefficient asset utilization

McGraw Hill, Inc.'s return on equity of 5.48%, is lower than 15.00%, indicating bad performance

McGraw Hill, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

McGraw Hill, Inc. had positive net income in only 1.00 out of 5 years, indicating unstable earnings

McGraw Hill, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

McGraw Hill, Inc. has a free cash flow yield of 6.60%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

McGraw Hill, Inc.'s yearly earnings has increased -141.15% since last year from $-85.84M to $35.32M, signaling increasing performance

McGraw Hill, Inc.'s yearly revenue has increased 0.07% since last year from $2.10G to $2.10G, signaling increasing performance

ROIC 6.00% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

McGraw Hill, Inc.'s 3-year revenue CAGR of 2.59% is positive, indicating growing revenue over the past 3 years

McGraw Hill, Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance

McGraw Hill, Inc. had positive ROE in only 1.00 out of 5 years, indicating inconsistent returns on equity

McGraw Hill, Inc. has insufficient data to evaluate this check.

McGraw Hill, Inc. has an earnings yield of 1.91%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

McGraw Hill, Inc. is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model

McGraw Hill, Inc. has an EV/EBITDA ratio of 6.37x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

McGraw Hill, Inc. is undervalued relative to its fair value price of 16.11 based on Earnings Fair Value model

McGraw Hill, Inc. has a PEG-ratio under 1 which is considered undervalued

McGraw Hill, Inc. has a price-to-book ratio of 2.55x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

McGraw Hill, Inc. has a price-to-sales ratio of 0.88x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue