PEARSON PLC (PES.DE) Fundamental Analysis & Valuation

FRA:PES • GB0006776081

Current stock price

11.075 EUR
-0.48 (-4.11%)
Last:

This PES.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. PES.DE Profitability Analysis

1.1 Basic Checks

  • PES had positive earnings in the past year.
  • PES had a positive operating cash flow in the past year.
  • In the past 5 years PES has always been profitable.
  • In the past 5 years PES always reported a positive cash flow from operatings.
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 2025 0 500M -500M -1B -1.5B -2B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 5.19%, PES belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • PES has a Return On Equity of 9.18%. This is amongst the best in the industry. PES outperforms 100.00% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 7.63%, PES belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Industry RankSector Rank
ROA 5.19%
ROE 9.18%
ROIC 7.63%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
PES.DE Yearly ROA, ROE, ROICPES.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -20 -40

1.3 Margins

  • The Profit Margin of PES (9.37%) is better than 100.00% of its industry peers.
  • PES's Profit Margin has been stable in the last couple of years.
  • PES has a better Operating Margin (14.23%) than 100.00% of its industry peers.
  • PES's Operating Margin has improved in the last couple of years.
  • The Gross Margin of PES (52.00%) is better than 66.67% of its industry peers.
  • In the last couple of years the Gross Margin of PES has grown nicely.
Industry RankSector Rank
OM 14.23%
PM (TTM) 9.37%
GM 52%
OM growth 3Y23.24%
OM growth 5Y4.6%
PM growth 3Y14.13%
PM growth 5Y-0.73%
GM growth 3Y3.62%
GM growth 5Y1.62%
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 2025 0 20 -20 40 -40

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. PES.DE Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PES is destroying value.
  • PES has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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

  • PES has an Altman-Z score of 2.50. This is not the best score and indicates that PES is in the grey zone with still only limited risk for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 2.50, PES belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • PES has a debt to FCF ratio of 2.84. This is a good value and a sign of high solvency as PES would need 2.84 years to pay back of all of its debts.
  • PES has a Debt to FCF ratio of 2.84. This is amongst the best in the industry. PES outperforms 100.00% of its industry peers.
  • PES has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
  • With an excellent Debt to Equity ratio value of 0.39, PES belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 2.84
Altman-Z 2.5
ROIC/WACC0.77
WACC9.97%
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 2025 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 2.00 indicates that PES should not have too much problems paying its short term obligations.
  • The Current ratio of PES (2.00) is better than 100.00% of its industry peers.
  • A Quick Ratio of 1.94 indicates that PES should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.94, PES belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2
Quick Ratio 1.94
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

4

3. PES.DE Growth Analysis

3.1 Past

  • PES shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.09%.
  • The Earnings Per Share has been growing by 17.25% on average over the past years. This is quite good.
  • Looking at the last year, PES shows a small growth in Revenue. The Revenue has grown by 0.70% in the last year.
  • The Revenue has been growing slightly by 1.04% on average over the past years.
EPS 1Y (TTM)4.09%
EPS 3Y7.29%
EPS 5Y17.25%
EPS Q2Q%10.99%
Revenue 1Y (TTM)0.7%
Revenue growth 3Y-2.35%
Revenue growth 5Y1.04%
Sales Q2Q%3.17%

3.2 Future

  • PES is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.64% yearly.
  • PES is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.36% yearly.
EPS Next Y9.34%
EPS Next 2Y10.6%
EPS Next 3Y10.79%
EPS Next 5Y5.64%
Revenue Next Year4.01%
Revenue Next 2Y4.45%
Revenue Next 3Y4.26%
Revenue Next 5Y4.36%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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. PES.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 15.17, the valuation of PES can be described as correct.
  • PES's Price/Earnings ratio is rather cheap when compared to the industry. PES is cheaper than 100.00% of the companies in the same industry.
  • PES's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.75.
  • A Price/Forward Earnings ratio of 13.82 indicates a correct valuation of PES.
  • Based on the Price/Forward Earnings ratio, PES is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 22.10. PES is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 15.17
Fwd PE 13.82
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

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.
  • Based on the Price/Free Cash Flow ratio, PES is valued cheaper than 100.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.58
EV/EBITDA 10.05
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

  • PES's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of PES may justify a higher PE ratio.
PEG (NY)1.62
PEG (5Y)0.88
EPS Next 2Y10.6%
EPS Next 3Y10.79%

More info and screens

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

6

5. PES.DE Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.63%, PES has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.88, PES pays a better dividend. On top of this PES pays more dividend than 100.00% of the companies listed in the same industry.
  • PES's Dividend Yield is a higher than the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.63%

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 2026 0.05 0.1 0.15 0.2

5.3 Sustainability

  • 47.76% of the earnings are spent on dividend by PES. This is a bit on the high side, but may be sustainable.
  • PES's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP47.76%
EPS Next 2Y10.6%
EPS Next 3Y10.79%
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 2025 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

PES.DE Fundamentals: All Metrics, Ratios and Statistics

PEARSON PLC

FRA:PES (3/25/2026, 7:00:00 PM)

11.075

-0.48 (-4.11%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)02-27
Earnings (Next)05-01
Inst Owners88.52%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap6.96B
Revenue(TTM)3.58B
Net Income(TTM)335.00M
Analysts75
Price Target14.18 (28.04%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.63%
Yearly Dividend0.26
Dividend Growth(5Y)4%
DP47.76%
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)-0.69%
PT rev (3m)-3.15%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)-0.97%
Valuation
Industry RankSector Rank
PE 15.17
Fwd PE 13.82
P/S 1.69
P/FCF 11.58
P/OCF 9.22
P/B 1.66
P/tB 9.46
EV/EBITDA 10.05
EPS(TTM)0.73
EY6.59%
EPS(NY)0.8
Fwd EY7.23%
FCF(TTM)0.96
FCFY8.64%
OCF(TTM)1.2
OCFY10.85%
SpS6.55
BVpS6.68
TBVpS1.17
PEG (NY)1.62
PEG (5Y)0.88
Graham Number10.48
Profitability
Industry RankSector Rank
ROA 5.19%
ROE 9.18%
ROCE 9.61%
ROIC 7.63%
ROICexc 8.14%
ROICexgc 20.67%
OM 14.23%
PM (TTM) 9.37%
GM 52%
FCFM 14.59%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y23.24%
OM growth 5Y4.6%
PM growth 3Y14.13%
PM growth 5Y-0.73%
GM growth 3Y3.62%
GM growth 5Y1.62%
F-Score7
Asset Turnover0.55
Health
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 2.84
Debt/EBITDA 1.98
Cap/Depr 64.73%
Cap/Sales 3.75%
Interest Coverage 6.97
Cash Conversion 91.62%
Profit Quality 155.82%
Current Ratio 2
Quick Ratio 1.94
Altman-Z 2.5
F-Score7
WACC9.97%
ROIC/WACC0.77
Cap/Depr(3y)55.38%
Cap/Depr(5y)51.19%
Cap/Sales(3y)3.56%
Cap/Sales(5y)3.93%
Profit Quality(3y)125.76%
Profit Quality(5y)110.09%
High Growth Momentum
Growth
EPS 1Y (TTM)4.09%
EPS 3Y7.29%
EPS 5Y17.25%
EPS Q2Q%10.99%
EPS Next Y9.34%
EPS Next 2Y10.6%
EPS Next 3Y10.79%
EPS Next 5Y5.64%
Revenue 1Y (TTM)0.7%
Revenue growth 3Y-2.35%
Revenue growth 5Y1.04%
Sales Q2Q%3.17%
Revenue Next Year4.01%
Revenue Next 2Y4.45%
Revenue Next 3Y4.26%
Revenue Next 5Y4.36%
EBIT growth 1Y-6.78%
EBIT growth 3Y20.35%
EBIT growth 5Y5.69%
EBIT Next Year43.29%
EBIT Next 3Y17.52%
EBIT Next 5Y18.36%
FCF growth 1Y3.78%
FCF growth 3Y34.61%
FCF growth 5Y15.41%
OCF growth 1Y4.63%
OCF growth 3Y22.03%
OCF growth 5Y11.02%

PEARSON PLC / PES.DE Fundamental Analysis FAQ

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

ChartMill assigns a fundamental rating of 6 / 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 8 / 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 9.34% in the next year.


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

The dividend rating of PEARSON PLC (PES.DE) is 6 / 10 and the dividend payout ratio is 47.76%.