McGraw HillFRA:1LI -6.06%31 ROE % is -26.96% as of Mar. 2026. GuruFocus rates FRA:1LI with a GF Score™ of 31/100. The stock has 5 warning signs investors should review. Among 260 Education companies, McGraw Hill ranks worse than 53.46% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. McGraw Hill's annualized net income for the quarter that ended in Mar. 2026 was €-174 Mil. McGraw Hill's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €645 Mil. Therefore, McGraw Hill's annualized ROE % for the quarter that ended in Mar. 2026 was -26.96%.
The historical rank and industry rank for McGraw Hill's ROE % or its related term are showing as below:
FRA:1LI'
s ROE % Range Over the Past 10 Years
Min: -53.63 Med: -34.05 Max: 7.02
Current: 6.18
During the past 7 years, McGraw Hill's highest ROE % was 7.02%. The lowest was -53.63%. And the median was -34.05%.
FRA:1LI's ROE % is ranked worse than 53.46% of 260
companies
in the Education industry
Industry Median: 7.3
vs FRA:1LI: 6.18
McGraw Hill (FRA:1LI) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
McGraw Hill ROE % Related Terms
McGraw Hill ROE % Historical Data
* Premium members only.
The historical data trend for McGraw Hill's ROE % 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.
For the Education & Training Services subindustry, McGraw Hill's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Education Industry
For the Education industry and Consumer Defensive sector, McGraw Hill's ROE % distribution charts can be found below:
* The bar in red indicates where McGraw Hill's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
McGraw Hill (FRA:1LI) has a ROE % of -26.96% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on McGraw Hill and its competitors. According to the industry distribution chart, McGraw Hill ranks #139 out of 260 companies in the Education industry, placing it in the top 53.5%.
Is McGraw Hill's ROE % too high?
McGraw Hill's current ROE % is -26.96%. Based on the distribution chart, McGraw Hill ranks #139 out of 260 companies in the Education industry, which is below the industry midpoint. 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 ROE % compare to UTI and PRDO?
According to the Education industry distribution chart, McGraw Hill ranks #139 out of 260 companies for ROE %. This places McGraw Hill in the lower half of its industry. The industry median ROE % is 7.30. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Education company?
The median ROE % among Education companies is 7.30, based on 260 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on McGraw Hill and its competitors. For the Education industry, the median ROE % is 7.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McGraw Hill's current ROE % is -26.96%. 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 ROE % of -26.96%. The current ROE % is -26.96%. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For McGraw Hill (FRA:1LI), the current ROE % is -26.96% 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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