McGraw Hill Co. (MHP) is a global information provider serving the financial, education and business markets via Standard & Poor’s, McGraw Hill Education, Business Week, Aviation Week and Platts.
MHP earns an amazing 35%+ return on equity and has grown profits and dividends 8-12% annually over the last 10 years. While the company experienced profit difficulties in 2009, it recovered in 2010 and continues to grow as a result of:
(1) rapid growth in digital sales,
(2) improvement in the domestic corporate new issue market as well as the credit market services division,
(3) management’s significant efforts to streamline operations and lower costs,
(4) an expanded stock buyback program.
