PEARSON PLC (PES.DE) Fundamental Analysis & Valuation

FRA:PES • GB0006776081

11.25 EUR
+0.01 (+0.09%)
Last: Mar 5, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership

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

Fundamental Rating

6

Taking everything into account, PES scores 6 out of 10 in our fundamental rating. PES was compared to 4 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.


Dividend Valuation Growth Profitability Health

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.
  • Each year in the past 5 years PES has 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 0 500M -500M -1B -1.5B -2B

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.
  • PES has a Return On Invested Capital of 8.65%. This is in the better half of the industry: PES outperforms 75.00% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for PES is below the industry average of 8.77%.
  • 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

  • PES has a Profit Margin of 12.53%. This is amongst the best in the industry. PES outperforms 100.00% of its industry peers.
  • In the last couple of years the Profit Margin of PES has grown nicely.
  • The Operating Margin of PES (15.77%) is better than 100.00% of its industry peers.
  • PES's Operating Margin has improved in the last couple of years.
  • PES's Gross Margin of 51.45% is fine compared to the rest of the industry. PES outperforms 75.00% of its industry peers.
  • In the last couple of years the Gross Margin of PES has remained more or less at the same level.
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

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7

2. PES.DE Health Analysis

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.
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

  • An Altman-Z score of 2.68 indicates that PES is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • PES's Altman-Z score of 2.68 is fine compared to the rest of the industry. PES outperforms 75.00% 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.
  • PES's Debt to FCF ratio of 2.42 is fine compared to the rest of the industry. PES outperforms 75.00% 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 is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 2.42
Altman-Z 2.68
ROIC/WACC0.93
WACC9.28%
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.
  • The Current ratio of PES (2.31) is better than 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.
  • PES has a better Quick ratio (2.24) than 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

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3

3. PES.DE Growth Analysis

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.
  • 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

  • Based on estimates for the next years, PES will show a small growth in Earnings Per Share. The EPS will grow by 6.77% on average per year.
  • Based on estimates for the next years, PES will show a small growth in Revenue. The Revenue will grow by 3.01% on average per year.
EPS Next Y3.3%
EPS Next 2Y6.83%
EPS Next 3Y8.22%
EPS Next 5Y6.77%
Revenue Next Year0.03%
Revenue Next 2Y2.27%
Revenue Next 3Y3.06%
Revenue Next 5Y3.01%

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.
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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5

4. PES.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 16.30, 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.
  • Compared to an average S&P500 Price/Earnings ratio of 26.29, PES is valued a bit cheaper.
  • Based on the Price/Forward Earnings ratio of 14.03, the valuation of PES can be described as correct.
  • PES's Price/Forward Earnings is on the same level as the industry average.
  • PES's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.57.
Industry RankSector Rank
PE 16.3
Fwd PE 14.03
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 a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
  • 75.00% of the companies in the same industry are more expensive than PES, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 10.05
EV/EBITDA 9.48
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 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)4.95
PEG (5Y)14.16
EPS Next 2Y6.83%
EPS Next 3Y8.22%

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6

5. PES.DE Dividend Analysis

5.1 Amount

  • PES has a Yearly Dividend Yield of 2.54%.
  • PES's Dividend Yield is a higher than the industry average which is at 2.00.
  • PES's Dividend Yield is a higher than the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.54%

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

  • 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 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

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PES.DE Fundamentals: All Metrics, Ratios and Statistics

PEARSON PLC

FRA:PES (3/5/2026, 7:00:00 PM)

11.25

+0.01 (+0.09%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)02-27
Earnings (Next)07-30
Inst Owners79.26%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap7.12B
Revenue(TTM)3.52B
Net Income(TTM)441.00M
Analysts75
Price Target14.18 (26.04%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.54%
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)-3.15%
PT rev (3m)-2.06%
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)0.17%
Revenue NY rev (3m)0.36%
Valuation
Industry RankSector Rank
PE 16.3
Fwd PE 14.03
P/S 1.76
P/FCF 10.05
P/OCF 8.32
P/B 1.73
P/tB 7.94
EV/EBITDA 9.48
EPS(TTM)0.69
EY6.13%
EPS(NY)0.8
Fwd EY7.13%
FCF(TTM)1.12
FCFY9.95%
OCF(TTM)1.35
OCFY12.01%
SpS6.39
BVpS6.52
TBVpS1.42
PEG (NY)4.95
PEG (5Y)14.16
Graham Number10.06
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 2.68
F-Score8
WACC9.28%
ROIC/WACC0.93
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 Year0.03%
Revenue Next 2Y2.27%
Revenue Next 3Y3.06%
Revenue Next 5Y3.01%
EBIT growth 1Y9.47%
EBIT growth 3Y26.69%
EBIT growth 5Y5.08%
EBIT Next Year39.05%
EBIT Next 3Y15.8%
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 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.


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 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 6 / 10 and the dividend payout ratio is 36.05%.