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The Moat Index

MCGRAW HILL, INC.

MH · Materials · $1.9B mkt cap · FY2026 filings · Narrow moat ·

Wonderful & reasonably priced

63/ 100
Narrow moat

The four filters

Pricing power100

Median gross margin 79.9% over 3y, very stable.

Returns on capital22

Median ROIC 7.3%, above the 9% hurdle in 33% of years.

Balance-sheet safety50

Net debt/EBITDA 3.6x, no material interest expense disclosed.

Capital discipline80

Owner earnings +84.9%/yr, share count n/a.

Margin of safety

Above valueOn sale
50% below value
Owner earnings (normalized)
$205.5M
Est. intrinsic value / share
$19.35
Recent price
$9.70
Discount to value
50% below value

Conservative model: 9% discount rate, 4% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

4 years of fundamentals

The business, in plain English

MCGRAW HILL, INC. booked $2.1B of revenue in FY2026 in the Materials sector and kept 80.9% of it as gross profit — a high-margin business by that measure. After every other cost, 1.7% of each revenue dollar reached the bottom line.

It earned 7.3% on invested capital in FY2026, with a median of 7.3% across 3 filed years. The Returns on Capital filter above scores it 22/100.

The balance sheet carried $2.6B of total debt in FY2026 against $312.4M of owner earnings — roughly 8.2 years of owner earnings to retire it all. Balance-Sheet Safety scores it 50/100.

Put together: Pricing Power is the strongest of the four filters (100/100) and Returns on Capital the weakest (22/100), which is how MH lands at 63/100 — a Narrow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

FY2023–FY2026 · 4 fiscal years, normalized from MH’s SEC filings

RevenueSales, as filed$2.1B FY2026
$0$1B$2B2023202420252026
Gross marginRevenue kept after cost of goods80.9% FY2026
0%50%2023202420252026
Return on invested capitalOperating profit on the capital employed7.3% FY2026
0%50%2023202420252026
Owner earningsCash an owner could take out$312.4M FY2026
$0$200M2023202420252026

Gaps in a line mean that item isn’t in MH’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

1 logged reading since Jul 18, 2026 · append-only, never rewritten

Moat Score over timeLast scored reading of each day, on the 0–100 scale62.5 / 100
0406080100WideNarrowShallowNo moatJul 18, 2026

Score history begins Jul 18, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — MH has read Narrow moat for every logged capture since Jul 18, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Track record

How MCGRAW HILL, INC.’s moat rated in each of the years we can reconstruct from its filings — scored only on what was knowable at the time — and what its price and returns did afterward. The score never saw a price; the two are joined only in hindsight, for education, not as a signal.

As-of scores 2025–2025, one methodology version · reconstructed from filings on file each Dec 31 — never with hindsight

As-of Moat Score (dot colored by tier)Indexed price (total-return (dividends reinvested))Rated Wide-moat that year

How to read this: each dot is what the engine would have scored MH on that December 31; the line below is its total-return price path (dividends reinvested) in the years since.

0406080100WideNarrowShallowNo moatAs-of Moat Score100Indexed price · log scale 2025

Two tracks, one timeline: the score has its own 0–100 scale (top), the price its own 100-based scale (bottom) — never a shared axis. The indexed price path isn't available for this company yet; gaps in the score line are years with no reconstructed rating (see the table for why). The Table view carries every value.

What followed, in the years it rated Wide

In the reconstructed history shown, MH did not rate Wide-moat in any year, so there is no wide-moat track record to report. That absence is itself the honest answer — we don’t manufacture a comparison where the rating never earned one.

Materials context

#39 of 231 scored Materials companies, ranked by Moat Score.

Nearest peers by Moat Score

  1. #37BRN BARNWELL INDUSTRIES, INC.63.8Narrow moat
  2. #38CSW CSW INDUSTRIALS, INC.63.2Narrow moat
  3. #40WLY JOHN WILEY & SONS, INC.62.1Narrow moat
  4. #41CRH CRH public limited company62.1Narrow moat

Compare MH with its nearest peers →All Materials companies on the Index →

Common questions about MH

Does MCGRAW HILL, INC. have an economic moat?
Based on its FY2026 SEC filings, the Moat Index scores MCGRAW HILL, INC. (MH) 62.5 out of 100 — a Narrow moat. The four filters behind that score (each 0–100): pricing power 100, returns on capital 22, balance-sheet safety 50, capital discipline 80.
Is MH stock trading below its intrinsic value?
Against a deliberately conservative owner-earnings model (9% discount rate, 4% assumed growth, capped at 4%), estimated intrinsic value is $19.35 per share versus a recent price of $9.70 — 50% below value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has MH's Moat Score changed over time?
The record logs 1 reading since Jul 18, 2026; the latest reads 62.5 out of 100 (narrow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.
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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell MH. See the disclaimer.