AU · rank #16 · 2026-10-19
MH
NYSE · $2.56B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of all factors below. | 1.006 |
|---|---|
| EPS revisions (30d) Change in consensus EPS estimate over the past 30 days ($/share). | +$0.00 |
| Net revisions (30d) Number of analysts revising upward minus downward. | 6 |
| Insider signal (90d) $0 across 0 unique buyers. | -0.186 |
| Analyst upside Consensus target $17.92 | +28.2% |
| Momentum acceleration 3-month minus 12-month momentum. | +47.04% |
| Analyst rating 5 = Strong Buy, 1 = Strong Sell. | 4.62 |
| Gross margin TTM | +81.7% |
| 52w high | $18.00 |
| Market cap (USD) | $2.56B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
McGraw Hill (MH) is a K-12, higher-education, and professional-learning publisher generating 77% recurring revenue through embedded digital platforms, AI tools, and multi-year campus and school contracts across 100M+ active licenses.
Rationale
The 28.2% analyst upside, 4.6/5 analyst rating, 13-analyst coverage with 80% revision agreement, and 47% momentum acceleration are reinforced by concrete fundamentals — 14.1% HE recurring revenue growth, a $1.52B RPO backlog, and a 23.7% earnings beat — making the analyst-upside signal structurally grounded rather than sentiment-only.
Material risks
- 1Generative-AI platforms and institution-built tools could commoditize content delivery and erode Evergreen/Inclusive Access renewal rates, directly attacking the embedded-distribution moat that justifies the analyst consensus and RPO visibility.
- 2Net leverage of 3.2x against $2.6B gross debt — including newly issued 8.0% secured notes — leaves the equity sensitive to enrollment-cycle delays or adoption-timing slippage that compress EBITDA before management's 2.0–2.5x target is reached.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.