McGraw HillFRA:1LI +1.27%31 Gross Margin % is 83.86% as of Mar. 2026, which is 7% above its 10-year median of 78.21. GuruFocus rates FRA:1LI with a GF Score™ of 31/100. The stock has 5 warning signs investors should review. Among 243 Education companies, McGraw Hill ranks better than 92.59% on this metric.
The historical rank and industry rank for McGraw Hill's Gross Margin % or its related term are showing as below:
FRA:1LI'
s Gross Margin % Range Over the Past 10 Years
Min: 76.15 Med: 78.21 Max: 80.92
Current: 80.92
During the past 7 years, the highestGross Margin % of McGraw Hill was 80.92%. The lowest was 76.15%. And the median was 78.21%.
FRA:1LI's Gross Margin % is ranked better than 92.59% of 243
companies
in the Education industry
Industry Median: 47.93
vs FRA:1LI: 80.92
McGraw Hill had a gross margin of 83.86% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for McGraw Hill was 0.90% per year.
McGraw Hill (FRA:1LI) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
McGraw Hill had a gross margin of 83.86% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
McGraw Hill Gross Margin % Related Terms
McGraw Hill Gross Margin % Historical Data
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The historical data trend for McGraw Hill's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:1LI vs STRA, COUR, LINC: Gross Margin % Comparison
For the Education & Training Services subindustry, McGraw Hill's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
McGraw Hill Gross Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, McGraw Hill's Gross Margin % distribution charts can be found below:
* The bar in red indicates where McGraw Hill's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
McGraw Hill (FRA:1LI) has a Gross Margin % of 83.86% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on McGraw Hill and its competitors. This is near median its historical median of 78.21. Over the past decade, McGraw Hill's Gross Margin % has ranged from 76.15 to 80.92. According to the industry distribution chart, McGraw Hill ranks #18 out of 243 companies in the Education industry, placing it in the top 7.4%.
Is McGraw Hill's Gross Margin % too high?
McGraw Hill's current Gross Margin % of 83.86% is near median its 10-year median of 78.21. Over the past 10 years, this metric has ranged from a low of 76.15 to a high of 80.92. The Education industry median Gross Margin % is 47.93. McGraw Hill's value of 83.86% is 75% above this industry median. Based on the distribution chart, McGraw Hill ranks #18 out of 243 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, McGraw Hill has a GF Score™ of 31/100, reflecting its overall financial health beyond just this single metric.
How does McGraw Hill's Gross Margin % compare to STRA and COUR?
According to the Education industry distribution chart, McGraw Hill ranks #18 out of 243 companies for Gross Margin %. This places McGraw Hill in the top 7% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 47.93. McGraw Hill's value of 83.86% is 75% above this benchmark. Historically, McGraw Hill's own Gross Margin % has ranged from 76.15 to 80.92 over the past decade. While the company's 10-year median is 78.21 vs. the industry median of 47.93, McGraw Hill has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Education company?
The median Gross Margin % among Education companies is 47.93, based on 243 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McGraw Hill's current Gross Margin % of 83.86% is 75% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on McGraw Hill and its competitors. For the Education industry, the median Gross Margin % is 47.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McGraw Hill's current Gross Margin % is 83.86%, which is near median its own 10-year median of 78.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McGraw Hill stock overvalued right now?
McGraw Hill (FRA:1LI) has a current Gross Margin % of 83.86%. The current Gross Margin % is 83.86%, which is near median its 10-year median of 78.21 and 75% above the Education industry median of 47.93. McGraw Hill's overall GF Score™ is 31/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For McGraw Hill (FRA:1LI), the current Gross Margin % is 83.86% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
McGraw Hill Inc is a provider of education solutions for K-12, higher education and professional learning markets. It is helping shape the education industry by providing access to effective learning experiences that improve outcomes and opportunities for all. It operates at the intersection of proprietary content, software and data, using artificial intelligence to deliver personalized learning experiences, driving positive outcomes throughout the entire learning lifecycle. The company has four reportable segments K-12, Higher Education, Global Professional, International. It generates majority of revenue from K-12 which provides end-to-end core, supplemental and intervention curricula to support the needs of U.S. K-12 schools. It generates majority of revenue from United States.
31GF Score
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