PEARSON PLC (PES.DE) Fundamental Analysis & Valuation
FRA:PES • GB0006776081
11.25 EUR
+0.01 (+0.09%)
Last: Mar 5, 2026, 07:00 PM
This PES.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 6 out of 10 to PES. PES was compared to 4 industry peers in the Diversified Consumer Services industry. While PES belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PES has a decent growth rate and is not valued too expensively.
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.
- Each year in the past 5 years PES has been profitable.
- 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 5.19%, PES belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- PES's Return On Equity of 9.18% is fine compared to the rest of the industry. PES outperforms 75.00% of its industry peers.
- The Return On Invested Capital of PES (7.63%) is better than 75.00% 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.
- PES's Profit Margin has been stable in the last couple of years.
- 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.
- Looking at the Gross Margin, with a value of 52.00%, PES is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- 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.
- There is no outstanding debt for PES. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 2.53 indicates that PES is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.53, PES is doing good in the industry, outperforming 75.00% 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.
- With a decent Debt to FCF ratio value of 2.84, PES is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.39 indicates that PES is not too dependend on debt financing.
- PES has a Debt to Equity ratio of 0.39. This is in the better half of the industry: PES outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.84 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.78
WACC9.77%
2.3 Liquidity
- PES has a Current Ratio of 2.00. This is a normal value and indicates that PES is financially healthy and should not expect problems in meeting its short term obligations.
- PES has a Current ratio of 2.00. This is amongst the best in the industry. PES outperforms 100.00% of its industry peers.
- 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%.
- The Earnings Per Share has been growing by 17.25% on average over the past years. This is quite good.
- PES shows a small growth in Revenue. In the last year, the Revenue has grown by 0.70%.
- 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
- PES is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.64% yearly.
- Based on estimates for the next years, PES will show a small growth in Revenue. The Revenue will grow by 4.36% on average per year.
EPS Next Y9.34%
EPS Next 2Y10.6%
EPS Next 3Y10.79%
EPS Next 5Y5.64%
Revenue Next Year4.01%
Revenue Next 2Y4.45%
Revenue Next 3Y4.26%
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
- With a Price/Earnings ratio of 15.20, PES is valued correctly.
- 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.
- PES's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.45.
- PES is valuated correctly with a Price/Forward Earnings ratio of 14.00.
- PES's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.65. PES is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.2 | ||
| Fwd PE | 14 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PES is valued a bit cheaper than 75.00% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PES indicates a somewhat cheap valuation: PES is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.81 | ||
| EV/EBITDA | 10.21 |
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)1.63
PEG (5Y)0.88
EPS Next 2Y10.6%
EPS Next 3Y10.79%
5. PES.DE Dividend Analysis
5.1 Amount
- PES has a Yearly Dividend Yield of 2.58%.
- Compared to an average industry Dividend Yield of 2.01, PES pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, PES pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
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 47.76% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of PES is growing, but earnings are growing more, so 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 (3/5/2026, 7:00:00 PM)
11.25
+0.01 (+0.09%)
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 Owners88.52%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap7.12B
Revenue(TTM)3.58B
Net Income(TTM)335.00M
Analysts75
Price Target14.18 (26.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
Yearly Dividend0.26
Dividend Growth(5Y)4%
DP47.76%
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)-0.69%
PT rev (3m)-3.15%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-0.4%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.97%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.2 | ||
| Fwd PE | 14 | ||
| P/S | 1.72 | ||
| P/FCF | 11.81 | ||
| P/OCF | 9.39 | ||
| P/B | 1.69 | ||
| P/tB | 9.64 | ||
| EV/EBITDA | 10.21 |
EPS(TTM)0.74
EY6.58%
EPS(NY)0.8
Fwd EY7.14%
FCF(TTM)0.95
FCFY8.47%
OCF(TTM)1.2
OCFY10.64%
SpS6.53
BVpS6.66
TBVpS1.17
PEG (NY)1.63
PEG (5Y)0.88
Graham Number10.53
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 | 2.53 |
F-Score7
WACC9.77%
ROIC/WACC0.78
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 Year4.01%
Revenue Next 2Y4.45%
Revenue Next 3Y4.26%
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 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 7 / 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 9.34% 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 47.76%.