PEARSON PLC (PES.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PES - GB0006776081 - Common Stock
11.395 EUR
+0.03 (+0.26%)
Taking everything into account, PES scores 7 out of 10 in our fundamental rating. PES was compared to 3 industry peers in the Diversified Consumer Services industry. PES has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. PES is valued quite cheap, but it does not seem to be growing. These ratings would make PES suitable for value investing!
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.
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
The Return On Assets of PES (7.08%) is better than 100.00% of its industry peers.
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 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
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.
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 Gross Margin of 51.45%. This is in the better half of the industry: PES outperforms 66.67% of its industry peers.
PES's Gross Margin has been stable in the last couple of years.
| 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
PES has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PES has less shares outstanding
Compared to 5 years ago, PES has less shares outstanding
PES has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.72 indicates that PES is not a great score, but indicates only limited risk for bankruptcy at the moment.
PES has a better Altman-Z score (2.72) than 100.00% 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.
Looking at the Debt to FCF ratio, with a value of 2.42, PES belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.40 indicates that PES is not too dependend on debt financing.
PES has a better Debt to Equity ratio (0.40) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 2.42 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.78
WACC11.04%
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.
With an excellent Current ratio value of 2.31, PES belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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's Quick ratio of 2.24 is amongst the best of the industry. PES outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 2.24 |
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%.
PES shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.15% yearly.
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
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 Y3.45%
EPS Next 2Y7.01%
EPS Next 3Y8.36%
EPS Next 5Y7.68%
Revenue Next Year-0.33%
Revenue Next 2Y2.35%
Revenue Next 3Y3.06%
Revenue Next 5Y3.16%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.76 indicates a correct valuation of PES.
100.00% of the companies in the same industry are more expensive than PES, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PES to the average of the S&P500 Index (26.11), we can say PES is valued slightly cheaper.
PES is valuated correctly with a Price/Forward Earnings ratio of 14.25.
Based on the Price/Forward Earnings ratio, PES is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PES to the average of the S&P500 Index (36.21), we can say PES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 14.25 |
4.2 Price Multiples
PES's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PES is cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PES is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.3 | ||
| EV/EBITDA | 9.67 |
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)4.86
PEG (5Y)14.55
EPS Next 2Y7.01%
EPS Next 3Y8.36%
5. Dividend
5.1 Amount
PES has a Yearly Dividend Yield of 2.46%. Purely for dividend investing, there may be better candidates out there.
PES's Dividend Yield is rather good when compared to the industry average which is at 2.46. PES pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, PES has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
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
36.05% of the earnings are spent on dividend by PES. This is a low number and sustainable payout ratio.
The dividend of PES is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.05%
EPS Next 2Y7.01%
EPS Next 3Y8.36%
FRA:PES (11/28/2025, 7:00:00 PM)
11.395
+0.03 (+0.26%)
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 Cap7.25B
Revenue(TTM)3.52B
Net Income(TTM)441.00M
Analysts68.57
Price Target14.48 (27.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
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)0.1%
PT rev (3m)-1.15%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)4.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 14.25 | ||
| P/S | 1.8 | ||
| P/FCF | 10.3 | ||
| P/OCF | 8.53 | ||
| P/B | 1.77 | ||
| P/tB | 8.14 | ||
| EV/EBITDA | 9.67 |
EPS(TTM)0.68
EY5.97%
EPS(NY)0.8
Fwd EY7.02%
FCF(TTM)1.11
FCFY9.71%
OCF(TTM)1.34
OCFY11.72%
SpS6.32
BVpS6.44
TBVpS1.4
PEG (NY)4.86
PEG (5Y)14.55
Graham Number9.93
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 | 2.72 |
F-Score8
WACC11.04%
ROIC/WACC0.78
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 Y3.45%
EPS Next 2Y7.01%
EPS Next 3Y8.36%
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-0.33%
Revenue Next 2Y2.35%
Revenue Next 3Y3.06%
Revenue Next 5Y3.16%
EBIT growth 1Y9.47%
EBIT growth 3Y26.69%
EBIT growth 5Y5.08%
EBIT Next Year36.45%
EBIT Next 3Y14.89%
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 7 / 10 to PEARSON PLC (PES.DE). This can be considered as Undervalued.
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 3.45% in the next year.