PEARSON PLC (PES.DE) Stock Fundamental Analysis

FRA:PES • GB0006776081

10.65 EUR
-0.04 (-0.33%)
Last: Feb 23, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

7

Overall PES gets a fundamental rating of 7 out of 10. We evaluated PES against 3 industry peers in the Diversified Consumer Services industry. Both the health and profitability get an excellent rating, making PES a very profitable company, without any liquidiy or solvency issues. PES has a valuation in line with the averages, but it does not seem to be growing. PES also has an excellent dividend rating. With these ratings, PES could be worth investigating further for dividend investing!.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • PES had positive earnings in the past year.
  • PES had a positive operating cash flow in the past year.
  • Each year in the past 5 years PES has been profitable.
  • Each year in the past 5 years PES had a positive operating cash flow.
PES.DE Yearly Net Income VS EBIT VS OCF VS FCFPES.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M -1B -1.5B -2B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 7.08%, PES belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • PES has a better Return On Equity (12.29%) than 100.00% of its industry peers.
  • PES has a better Return On Invested Capital (8.65%) than 100.00% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for PES is in line with the industry average of 8.65%.
  • The last Return On Invested Capital (8.65%) for PES is above the 3 year average (6.70%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 7.08%
ROE 12.29%
ROIC 8.65%
ROA(3y)5.07%
ROA(5y)4.41%
ROE(3y)8.59%
ROE(5y)7.58%
ROIC(3y)6.7%
ROIC(5y)5.84%
PES.DE Yearly ROA, ROE, ROICPES.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -20 -40

1.3 Margins

  • PES has a better Profit Margin (12.53%) than 100.00% of its industry peers.
  • In the last couple of years the Profit Margin of PES has grown nicely.
  • PES has a Operating Margin of 15.77%. This is amongst the best in the industry. PES outperforms 100.00% of its industry peers.
  • In the last couple of years the Operating Margin of PES has grown nicely.
  • PES has a better Gross Margin (51.45%) than 66.67% of its industry peers.
  • PES's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 15.77%
PM (TTM) 12.53%
GM 51.45%
OM growth 3Y25.2%
OM growth 5Y6.89%
PM growth 3Y33.26%
PM growth 5Y12.36%
GM growth 3Y1.31%
GM growth 5Y-0.38%
PES.DE Yearly Profit, Operating, Gross MarginsPES.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PES is destroying value.
  • The number of shares outstanding for PES has been reduced compared to 1 year ago.
  • Compared to 5 years ago, PES has less shares outstanding
  • The debt/assets ratio for PES is higher compared to a year ago.
PES.DE Yearly Shares OutstandingPES.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
PES.DE Yearly Total Debt VS Total AssetsPES.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

  • An Altman-Z score of 2.61 indicates that PES is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 2.61, PES belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • The Debt to FCF ratio of PES is 2.42, which is a good value as it means it would take PES, 2.42 years of fcf income to pay off all of its debts.
  • PES's Debt to FCF ratio of 2.42 is amongst the best of the industry. PES outperforms 100.00% of its industry peers.
  • PES has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of PES (0.40) is better than 100.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 2.42
Altman-Z 2.61
ROIC/WACC0.79
WACC10.88%
PES.DE Yearly LT Debt VS Equity VS FCFPES.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

2.3 Liquidity

  • PES has a Current Ratio of 2.31. This indicates that PES is financially healthy and has no problem in meeting its short term obligations.
  • The Current ratio of PES (2.31) is better than 100.00% of its industry peers.
  • A Quick Ratio of 2.24 indicates that PES has no problem at all paying its short term obligations.
  • With an excellent Quick ratio value of 2.24, PES belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.31
Quick Ratio 2.24
PES.DE Yearly Current Assets VS Current LiabilitesPES.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. Growth

3.1 Past

  • PES shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.29%.
  • Measured over the past 5 years, PES shows a small growth in Earnings Per Share. The EPS has been growing by 1.15% on average per year.
  • Looking at the last year, PES shows a decrease in Revenue. The Revenue has decreased by -0.82% in the last year.
  • PES shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.70% yearly.
EPS 1Y (TTM)3.29%
EPS 3Y20.87%
EPS 5Y1.15%
EPS Q2Q%-5.47%
Revenue 1Y (TTM)-0.82%
Revenue growth 3Y1.19%
Revenue growth 5Y-1.7%
Sales Q2Q%-1.82%

3.2 Future

  • PES is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.77% yearly.
  • Based on estimates for the next years, PES will show a small growth in Revenue. The Revenue will grow by 3.01% on average per year.
EPS Next Y3.3%
EPS Next 2Y6.83%
EPS Next 3Y8.22%
EPS Next 5Y6.77%
Revenue Next Year-0.14%
Revenue Next 2Y2.5%
Revenue Next 3Y3.12%
Revenue Next 5Y3.01%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
PES.DE Yearly Revenue VS EstimatesPES.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1B 2B 3B 4B
PES.DE Yearly EPS VS EstimatesPES.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0.2 0.4 0.6 0.8

More info and screens

Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • PES is valuated correctly with a Price/Earnings ratio of 15.66.
  • Based on the Price/Earnings ratio, PES is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
  • PES's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.05.
  • A Price/Forward Earnings ratio of 13.34 indicates a correct valuation of PES.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of PES indicates a somewhat cheap valuation: PES is cheaper than 66.67% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 28.03. PES is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 15.66
Fwd PE 13.34
PES.DE Price Earnings VS Forward Price EarningsPES.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PES indicates a rather cheap valuation: PES is cheaper than 100.00% of the companies listed in the same industry.
  • PES's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PES is cheaper than 100.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.56
EV/EBITDA 9.08
PES.DE Per share dataPES.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The excellent profitability rating of PES may justify a higher PE ratio.
PEG (NY)4.75
PEG (5Y)13.6
EPS Next 2Y6.83%
EPS Next 3Y8.22%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 2.70%, PES has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.90, PES pays a better dividend. On top of this PES pays more dividend than 100.00% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, PES pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.7%

5.2 History

  • The dividend of PES has a limited annual growth rate of 4.00%.
Dividend Growth(5Y)4%
Div Incr Years4
Div Non Decr Years4
PES.DE Yearly Dividends per sharePES.DE Yearly Dividends per shareYearly Dividends per share 2020 2021 2022 2023 2024 2025 0.05 0.1 0.15 0.2

5.3 Sustainability

  • PES pays out 36.05% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of PES is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.05%
EPS Next 2Y6.83%
EPS Next 3Y8.22%
PES.DE Yearly Income VS Free CF VS DividendPES.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M -1B -1.5B -2B
PES.DE Dividend Payout.PES.DE Dividend Payout, showing the Payout Ratio.PES.DE Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

PEARSON PLC

FRA:PES (2/23/2026, 7:00:00 PM)

10.65

-0.04 (-0.33%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)N/A
Earnings (Next)02-27
Inst Owners79.26%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap6.74B
Revenue(TTM)3.52B
Net Income(TTM)441.00M
Analysts75
Price Target14.28 (34.08%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.7%
Yearly Dividend0.26
Dividend Growth(5Y)4%
DP36.05%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.48%
PT rev (3m)-1.89%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.19%
Valuation
Industry RankSector Rank
PE 15.66
Fwd PE 13.34
P/S 1.67
P/FCF 9.56
P/OCF 7.91
P/B 1.64
P/tB 7.55
EV/EBITDA 9.08
EPS(TTM)0.68
EY6.38%
EPS(NY)0.8
Fwd EY7.5%
FCF(TTM)1.11
FCFY10.46%
OCF(TTM)1.35
OCFY12.64%
SpS6.37
BVpS6.49
TBVpS1.41
PEG (NY)4.75
PEG (5Y)13.6
Graham Number9.97
Profitability
Industry RankSector Rank
ROA 7.08%
ROE 12.29%
ROCE 10.65%
ROIC 8.65%
ROICexc 9.26%
ROICexgc 21.92%
OM 15.77%
PM (TTM) 12.53%
GM 51.45%
FCFM 17.5%
ROA(3y)5.07%
ROA(5y)4.41%
ROE(3y)8.59%
ROE(5y)7.58%
ROIC(3y)6.7%
ROIC(5y)5.84%
ROICexc(3y)7.48%
ROICexc(5y)7.31%
ROICexgc(3y)20.27%
ROICexgc(5y)22.68%
ROCE(3y)8.26%
ROCE(5y)7.2%
ROICexgc growth 3Y7.27%
ROICexgc growth 5Y10.63%
ROICexc growth 3Y17.53%
ROICexc growth 5Y6.81%
OM growth 3Y25.2%
OM growth 5Y6.89%
PM growth 3Y33.26%
PM growth 5Y12.36%
GM growth 3Y1.31%
GM growth 5Y-0.38%
F-Score8
Asset Turnover0.57
Health
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 2.42
Debt/EBITDA 1.84
Cap/Depr 58.45%
Cap/Sales 3.64%
Interest Coverage 10.09
Cash Conversion 96.12%
Profit Quality 139.68%
Current Ratio 2.31
Quick Ratio 2.24
Altman-Z 2.61
F-Score8
WACC10.88%
ROIC/WACC0.79
Cap/Depr(3y)49.36%
Cap/Depr(5y)46.7%
Cap/Sales(3y)3.58%
Cap/Sales(5y)3.97%
Profit Quality(3y)103.3%
Profit Quality(5y)94.38%
High Growth Momentum
Growth
EPS 1Y (TTM)3.29%
EPS 3Y20.87%
EPS 5Y1.15%
EPS Q2Q%-5.47%
EPS Next Y3.3%
EPS Next 2Y6.83%
EPS Next 3Y8.22%
EPS Next 5Y6.77%
Revenue 1Y (TTM)-0.82%
Revenue growth 3Y1.19%
Revenue growth 5Y-1.7%
Sales Q2Q%-1.82%
Revenue Next Year-0.14%
Revenue Next 2Y2.5%
Revenue Next 3Y3.12%
Revenue Next 5Y3.01%
EBIT growth 1Y9.47%
EBIT growth 3Y26.69%
EBIT growth 5Y5.08%
EBIT Next Year39.42%
EBIT Next 3Y15.89%
EBIT Next 5Y14.38%
FCF growth 1Y133.33%
FCF growth 3Y49.68%
FCF growth 5Y23.37%
OCF growth 1Y82.8%
OCF growth 3Y24.36%
OCF growth 5Y11.19%

PEARSON PLC / PES.DE FAQ

What is the ChartMill fundamental rating of PEARSON PLC (PES.DE) stock?

ChartMill assigns a fundamental rating of 7 / 10 to PES.DE.


Can you provide the valuation status for PEARSON PLC?

ChartMill assigns a valuation rating of 6 / 10 to PEARSON PLC (PES.DE). This can be considered as Fairly Valued.


Can you provide the profitability details for PEARSON PLC?

PEARSON PLC (PES.DE) has a profitability rating of 9 / 10.


What is the expected EPS growth for PEARSON PLC (PES.DE) stock?

The Earnings per Share (EPS) of PEARSON PLC (PES.DE) is expected to grow by 3.3% in the next year.


How sustainable is the dividend of PEARSON PLC (PES.DE) stock?

The dividend rating of PEARSON PLC (PES.DE) is 7 / 10 and the dividend payout ratio is 36.05%.