PEARSON PLC (PES.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PES - GB0006776081 - Common Stock
12.095 EUR
+0.21 (+1.72%)
We assign a fundamental rating of 7 out of 10 to PES. PES was compared to 6 industry peers in the Diversified Consumer Services industry. PES gets an excellent profitability rating and is at the same time showing great financial health properties. PES is valued correctly, but it does not seem to be growing. PES also has an excellent dividend rating. These ratings would make PES suitable for dividend investing!
1. Profitability
1.1 Basic Checks
PES had positive earnings in the past year.
In the past year PES had a positive cash flow from operations.
PES had positive earnings in each of the past 5 years.
PES had a positive operating cash flow in each of the past 5 years.
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.
The Return On Equity of PES (12.29%) is better than 100.00% of its industry peers.
The Return On Invested Capital of PES (8.65%) is better than 83.33% of its industry peers.
PES had an Average Return On Invested Capital over the past 3 years of 6.70%. This is below the industry average of 8.77%.
The 3 year average ROIC (6.70%) for PES is below the current ROIC(8.65%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
PES has a better Profit Margin (12.53%) than 100.00% of its industry peers.
PES's Profit Margin has improved in the last couple of years.
PES has a better Operating Margin (15.77%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of PES has grown nicely.
Looking at the Gross Margin, with a value of 51.45%, PES belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Gross Margin of PES has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PES is still creating some value.
PES has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PES has less shares outstanding
PES has a worse debt/assets ratio than last year.
2.2 Solvency
PES has an Altman-Z score of 2.80. 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.
PES has a better Altman-Z score (2.80) than 83.33% of its industry peers.
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.
The Debt to FCF ratio of PES (2.42) is better than 83.33% 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.
Looking at the Debt to Equity ratio, with a value of 0.40, PES belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.42 | ||
| Altman-Z | 2.8 |
ROIC/WACC1
WACC8.61%
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.
PES has a Current ratio of 2.31. This is amongst the best in the industry. PES outperforms 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 2.24 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.29% over the past year.
PES shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.15% yearly.
The Revenue has decreased by -0.82% in the past 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
The Earnings Per Share is expected to grow by 7.68% on average over the next years.
The Revenue is expected to grow by 3.16% on average over the next years.
EPS Next Y2.86%
EPS Next 2Y6.9%
EPS Next 3Y8.3%
EPS Next 5Y7.68%
Revenue Next Year-0.16%
Revenue Next 2Y2.43%
Revenue Next 3Y3.08%
Revenue Next 5Y3.16%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.79, which indicates a rather expensive current valuation of PES.
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.
When comparing the Price/Earnings ratio of PES to the average of the S&P500 Index (26.59), we can say PES is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.12, which 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 24.03. PES is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.79 | ||
| Fwd PE | 15.12 |
4.2 Price Multiples
PES's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PES is cheaper than 83.33% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PES indicates a rather cheap valuation: PES is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.91 | ||
| EV/EBITDA | 10.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PES does not grow enough to justify the current Price/Earnings ratio.
PES has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.22
PEG (5Y)15.44
EPS Next 2Y6.9%
EPS Next 3Y8.3%
5. Dividend
5.1 Amount
PES has a Yearly Dividend Yield of 2.44%.
PES's Dividend Yield is rather good when compared to the industry average which is at 1.98. PES pays more dividend than 83.33% of the companies in the same industry.
PES's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
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
5.3 Sustainability
PES pays out 36.05% of its income as dividend. This is a sustainable payout ratio.
PES's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP36.05%
EPS Next 2Y6.9%
EPS Next 3Y8.3%
FRA:PES (12/18/2025, 7:00:00 PM)
12.095
+0.21 (+1.72%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners77.62%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap7.70B
Revenue(TTM)3.52B
Net Income(TTM)441.00M
Analysts68.57
Price Target14.65 (21.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
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)0.49%
PT rev (3m)-0.17%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.57%
EPS NY rev (3m)-0.86%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)4.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.79 | ||
| Fwd PE | 15.12 | ||
| P/S | 1.91 | ||
| P/FCF | 10.91 | ||
| P/OCF | 9.03 | ||
| P/B | 1.87 | ||
| P/tB | 8.61 | ||
| EV/EBITDA | 10.15 |
EPS(TTM)0.68
EY5.62%
EPS(NY)0.8
Fwd EY6.61%
FCF(TTM)1.11
FCFY9.17%
OCF(TTM)1.34
OCFY11.07%
SpS6.34
BVpS6.46
TBVpS1.4
PEG (NY)6.22
PEG (5Y)15.44
Graham Number9.94
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.8 |
F-Score8
WACC8.61%
ROIC/WACC1
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 Y2.86%
EPS Next 2Y6.9%
EPS Next 3Y8.3%
EPS Next 5Y7.68%
Revenue 1Y (TTM)-0.82%
Revenue growth 3Y1.19%
Revenue growth 5Y-1.7%
Sales Q2Q%-1.82%
Revenue Next Year-0.16%
Revenue Next 2Y2.43%
Revenue Next 3Y3.08%
Revenue Next 5Y3.16%
EBIT growth 1Y9.47%
EBIT growth 3Y26.69%
EBIT growth 5Y5.08%
EBIT Next Year39.42%
EBIT Next 3Y15.87%
EBIT Next 5Y14.86%
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.
What is the valuation status for PES stock?
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 financial health of PEARSON PLC (PES.DE) stock?
The financial health rating of PEARSON PLC (PES.DE) is 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 2.86% in the next year.