HMH Holding Inc. Class A Common Stock Fundamental Analysis (NASDAQ: HMH)
HMH Holding Inc. Class A Common Stock Fundamental Analysis (NASDAQ: HMH)
HMH Holding Inc. Class A Common Stock (NASDAQ: HMH) shows weak financial fundamentals with a PE ratio of 23.97, profit margin of 5.09%, and ROE of 6.75%. The company generates $0.8B in annual revenue with weak year-over-year growth of -2.56%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 29.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HMH's fundamental strength across five key dimensions:
Efficiency Score
WeakHMH struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHMH trades at attractive valuation levels.
Growth Score
WeakHMH faces weak or negative growth trends.
Financial Health Score
ModerateHMH shows balanced financial health with some risks.
Profitability Score
WeakHMH struggles to sustain strong margins.
Key Financial Metrics
Is HMH Expensive or Cheap?
P/E Ratio
HMH trades at 23.97 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HMH's PEG of -3.76 indicates potential undervaluation.
Price to Book
The market values HMH Holding Inc. Class A Common Stock at 4.40 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 6.20 times EBITDA. This is generally considered low.
How Well Does HMH Make Money?
Net Profit Margin
For every $100 in sales, HMH Holding Inc. Class A Common Stock keeps $5.09 as profit after all expenses.
Operating Margin
Core operations generate 11.90 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.75 in profit for every $100 of shareholder equity.
ROA
HMH Holding Inc. Class A Common Stock generates $2.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
HMH Holding Inc. Class A Common Stock produces operating cash flow of $123.09M, showing steady but balanced cash generation.
Free Cash Flow
HMH Holding Inc. Class A Common Stock generates strong free cash flow of $103.72M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.32 in free cash annually.
FCF Yield
HMH converts 10.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.76
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How HMH Stacks Against Its Sector Peers
| Metric | HMH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.97 | 21.54 | Worse (Expensive) |
| ROE | 6.75% | 1255.00% | Weak |
| Net Margin | 5.09% | 1263.00% | Weak |
| Debt/Equity | 1.17 | -1.82 (disorted) | Distorted |
| Current Ratio | 2.97 | 2.24 | Strong Liquidity |
| ROA | 2.85% | 4414.00% | Weak |
HMH outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews HMH Holding Inc. Class A Common Stock's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
21.34%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
271.11%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
8966.74%
Industry Style: Cyclical, Value, Commodity
High Growth