NEW YORK (TheStreet) -- Shares of Graham Holdings Co. ( GHC) are up 0.33% to $731.00 after it announced it has acquired a majority interest in Residential Healthcare Group, Inc., the parent company of Residential Home Health and Residential Hospice, leading providers of skilled home health care and hospice services in Michigan and Illinois.
Financial terms of the deal were not disclosed.
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Separately, TheStreet Ratings team rates GRAHAM HOLDINGS CO as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate GRAHAM HOLDINGS CO (GHC) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- GHC's revenue growth has slightly outpaced the industry average of 1.4%. Since the same quarter one year prior, revenues slightly increased by 2.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- GHC's debt-to-equity ratio is very low at 0.13 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, GHC has a quick ratio of 1.78, which demonstrates the ability of the company to cover short-term liquidity needs.
- Powered by its strong earnings growth of 504.45% and other important driving factors, this stock has surged by 48.27% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- GRAHAM HOLDINGS CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GRAHAM HOLDINGS CO increased its bottom line by earning $23.22 versus $8.90 in the prior year. This year, the market expects an improvement in earnings ($35.70 versus $23.22).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Consumer Services industry. The net income increased by 2467.3% when compared to the same quarter one year prior, rising from $5.16 million to $132.52 million.
- You can view the full analysis from the report here: GHC Ratings Report