PEARSON PLC (PES.DE) Stock Fundamental Analysis

FRA:PES • GB0006776081

10.45 EUR
+0.06 (+0.63%)
Last: Feb 16, 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. PES gets an excellent profitability rating and is at the same time showing great financial health properties. PES has a valuation in line with the averages, but it does not seem to be growing. PES also has an excellent dividend rating. These ratings would make PES suitable for dividend investing!


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • In the past year PES was profitable.
  • In the past year PES had a positive cash flow from operations.
  • In the past 5 years PES has always 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.
  • Looking at the Return On Equity, with a value of 12.29%, PES belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 8.65%, PES belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • PES had an Average Return On Invested Capital over the past 3 years of 6.70%. This 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

  • The Profit Margin of PES (12.53%) is better than 100.00% of its industry peers.
  • PES's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 15.77%, PES belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
  • PES's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 51.45%, PES is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
  • 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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PES is destroying value.
  • The number of shares outstanding for PES has been reduced compared to 1 year ago.
  • The number of shares outstanding for PES has been reduced compared to 5 years ago.
  • 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

  • PES has an Altman-Z score of 2.59. 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.
  • The Altman-Z score of PES (2.59) is better than 100.00% of its industry peers.
  • PES has a debt to FCF ratio of 2.42. This is a good value and a sign of high solvency as PES would need 2.42 years to pay back of 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.
  • A Debt/Equity ratio of 0.40 indicates that PES is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.40, PES belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 2.42
Altman-Z 2.59
ROIC/WACC0.81
WACC10.63%
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.
  • PES has a Current ratio of 2.31. This is amongst the best in the industry. PES outperforms 100.00% of its industry peers.
  • PES has a Quick Ratio of 2.24. This indicates that PES is financially healthy and has no problem in meeting its short term obligations.
  • PES has a Quick ratio of 2.24. This is amongst the best in the industry. PES outperforms 100.00% of its industry peers.
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%.
  • The Earnings Per Share has been growing slightly by 1.15% on average over the past years.
  • Looking at the last year, PES shows a decrease in Revenue. The Revenue has decreased by -0.82% in the last year.
  • The Revenue has been decreasing by -1.70% on average over the past years.
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 6.77% on average over the next years.
  • PES is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.01% yearly.
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

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6

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 15.37 indicates a correct valuation of PES.
  • Based on the Price/Earnings ratio, PES is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of PES to the average of the S&P500 Index (27.16), we can say PES is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 13.09, which indicates a correct valuation of PES.
  • Based on the Price/Forward Earnings ratio, PES is valued a bit cheaper than 66.67% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 28.10. PES is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 15.37
Fwd PE 13.09
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

  • Based on the Enterprise Value to EBITDA ratio, PES is valued cheaper than 100.00% of the companies 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 9.38
EV/EBITDA 8.94
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)4.66
PEG (5Y)13.34
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

  • PES has a Yearly Dividend Yield of 2.70%.
  • PES's Dividend Yield is rather good when compared to the industry average which is at 0.90. PES pays more dividend than 100.00% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, 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

  • 36.05% of the earnings are spent on dividend by PES. This is a low number and sustainable payout ratio.
  • PES's earnings are growing more than its dividend. This makes the dividend growth 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

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PEARSON PLC

FRA:PES (2/16/2026, 7:00:00 PM)

10.45

+0.06 (+0.63%)

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 Cap6.62B
Revenue(TTM)3.52B
Net Income(TTM)441.00M
Analysts75
Price Target14.28 (36.65%)
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 15.37
Fwd PE 13.09
P/S 1.64
P/FCF 9.38
P/OCF 7.77
P/B 1.61
P/tB 7.41
EV/EBITDA 8.94
EPS(TTM)0.68
EY6.51%
EPS(NY)0.8
Fwd EY7.64%
FCF(TTM)1.11
FCFY10.66%
OCF(TTM)1.35
OCFY12.88%
SpS6.37
BVpS6.49
TBVpS1.41
PEG (NY)4.66
PEG (5Y)13.34
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 2.59
F-Score8
WACC10.63%
ROIC/WACC0.81
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%.