PEARSON PLC (PES.DE) Fundamental Analysis & Valuation
FRA:PES • GB0006776081
Current stock price
11.45 EUR
-0.14 (-1.21%)
Last:
This PES.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. PES.DE Profitability Analysis
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.
1.2 Ratios
- PES has a Return On Assets of 5.19%. This is amongst the best in the industry. PES outperforms 100.00% of its industry peers.
- PES has a better Return On Equity (9.18%) than 80.00% of its industry peers.
- PES's Return On Invested Capital of 7.63% is fine compared to the rest of the industry. PES outperforms 80.00% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
- PES's Profit Margin of 9.37% is amongst the best of the industry. PES outperforms 100.00% of its industry peers.
- In the last couple of years the Profit Margin of PES has remained more or less at the same level.
- PES's Operating Margin of 14.23% is amongst the best of 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's Gross Margin of 52.00% is fine compared to the rest of the industry. PES outperforms 80.00% of its industry peers.
- In the last couple of years the Gross Margin of PES has grown nicely.
| Industry Rank | Sector 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%
2. PES.DE Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PES is destroying value.
- PES has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for PES has been reduced compared to 5 years ago.
- Compared to 1 year ago, PES has a worse debt to assets ratio.
2.2 Solvency
- PES has an Altman-Z score of 2.57. 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 a decent Altman-Z score value of 2.57, PES is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- The Debt to FCF ratio of PES is 2.84, which is a good value as it means it would take PES, 2.84 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of PES (2.84) is better than 80.00% 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.
- PES's Debt to Equity ratio of 0.39 is fine compared to the rest of the industry. PES outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.84 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.83
WACC9.19%
2.3 Liquidity
- A Current Ratio of 2.00 indicates that PES should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 2.00, PES belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- PES has a Quick Ratio of 1.94. This is a normal value and indicates that PES is financially healthy and should not expect problems in meeting 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.94 |
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%.
- PES shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.25% yearly.
- Looking at the last year, PES shows a small growth in Revenue. The Revenue has grown by 0.70% in the last year.
- Measured over the past years, PES shows a small growth in Revenue. The Revenue has been growing by 1.04% on average per year.
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
- Based on estimates for the next years, PES will show a small growth in Earnings Per Share. The EPS will grow by 5.64% on average per year.
- The Revenue is expected to grow by 4.36% on average over the next years.
EPS Next Y9.34%
EPS Next 2Y10.6%
EPS Next 3Y10.79%
EPS Next 5Y5.64%
Revenue Next Year3.49%
Revenue Next 2Y4.02%
Revenue Next 3Y4.21%
Revenue Next 5Y4.36%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less 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.
4. PES.DE Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 15.68, which indicates a correct 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.
- The average S&P500 Price/Earnings ratio is at 26.78. PES is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 14.33, PES is valued correctly.
- PES's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.54, PES is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.68 | ||
| Fwd PE | 14.33 |
4.2 Price Multiples
- 80.00% of the companies in the same industry are more expensive than PES, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, PES is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12 | ||
| EV/EBITDA | 10.46 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- PES has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.68
PEG (5Y)0.91
EPS Next 2Y10.6%
EPS Next 3Y10.79%
5. PES.DE Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 2.50%, PES has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.62, PES pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, PES pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
5.2 History
- The dividend of PES has a limited annual growth rate of 5.26%.
Dividend Growth(5Y)5.26%
Div Incr Years5
Div Non Decr Years5
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 around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP47.76%
EPS Next 2Y10.6%
EPS Next 3Y10.79%
PES.DE Fundamentals: All Metrics, Ratios and Statistics
FRA:PES (4/10/2026, 7:00:00 PM)
11.45
-0.14 (-1.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)02-27 2026-02-27/bmo
Earnings (Next)05-01 2026-05-01
Inst Owners79.27%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap7.03B
Revenue(TTM)3.58B
Net Income(TTM)335.00M
Analysts75
Price Target13.61 (18.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
Yearly Dividend0.28
Dividend Growth(5Y)5.26%
DP47.76%
Div Incr Years5
Div Non Decr Years5
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%
PT rev (3m)-3.15%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-1.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.68 | ||
| Fwd PE | 14.33 | ||
| P/S | 1.75 | ||
| P/FCF | 12 | ||
| P/OCF | 9.55 | ||
| P/B | 1.72 | ||
| P/tB | 9.8 | ||
| EV/EBITDA | 10.46 |
EPS(TTM)0.73
EY6.38%
EPS(NY)0.8
Fwd EY6.98%
FCF(TTM)0.95
FCFY8.34%
OCF(TTM)1.2
OCFY10.48%
SpS6.54
BVpS6.67
TBVpS1.17
PEG (NY)1.68
PEG (5Y)0.91
Graham Number10.47
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.57 |
F-Score7
WACC9.19%
ROIC/WACC0.83
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 Year3.49%
Revenue Next 2Y4.02%
Revenue Next 3Y4.21%
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 5 / 10 to PEARSON PLC (PES.DE). This can be considered as Fairly Valued.
What is the profitability of PES stock?
PEARSON PLC (PES.DE) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for PES stock?
The Price/Earnings (PE) ratio for PEARSON PLC (PES.DE) is 15.68 and the Price/Book (PB) ratio is 1.72.
How financially healthy is PEARSON PLC?
The financial health rating of PEARSON PLC (PES.DE) is 6 / 10.