First Read: McGraw Hill Inc "April FAFSA Completions Encouraging" (Neutral) Chan

Research evidence excerpt

First Read: McGraw Hill Inc "April FAFSA Completions Encouraging" (Neutral) Chan

Global Research

18 May 2026ab

First Read

EquitiesMcGraw Hill Inc

April FAFSA Completions Encouraging United States

Diversified Technology Services

12-month rating Neutral *

FAFSA Application Completions Tracking +12%

The U.S. Department of Education released April FAFSA student aid completion data, 12m price target US$17.00

which we believe can be indicative of university enrollment trends in the 2026-2027

academic year. Through the end of April, applications completed on a cumulative basis

Price (15 May 2026) US$11.42

were 2.25m, which is tracking +11.9% yoy. While this is clearly encouraging, the

comparison through April likely benefitted from the FAFSA application opening 2+ RIC: MH.N BBG: MH US

months earlier this year. As such, we would expect the growth to narrow somewhat over Trading data and key metrics

the coming months, but remain solidly positive. For perspective, approximately 79% of

52-wk range US$17.99-10.87

annual FAFSA applications are received through April in a normal year.

Market cap. US$2.18b

Shares o/s 191m (COM)

Implications for McGraw Hill

Free float 15%

Enrollment. We find the data encouraging for McGraw Hill as Higher Ed

Avg. daily volume ('000) 133

institutions approach Fall enrollment. We would anticipate enrollment growth to

narrow from the +12% yoy seen in FAFSA data, but to possibly remain solidly Avg. daily value (m) US$1.8

positive in Fall 2026. Common s/h equity (03/26E) US$0.75b

P/BV (03/26E) 3.0x

Model implications. Our F2027 Higher Ed revenue growth estimate of +4% may Net debt to EBITDA (03/26E) 3.0x

be conservative, especially if MH continues its history of share gains in the Higher

Ed business. National enrollment grew +1% in F2026.