PEARSON PLC (PES.DE) Fundamental Analysis & Valuation

FRA:PES • GB0006776081

Current stock price

11.415 EUR
+0.16 (+1.47%)
Last:

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

7

1. PES.DE Profitability Analysis

1.1 Basic Checks

  • PES had positive earnings in the past year.
  • In the past year PES had a positive cash flow from operations.
  • In the past 5 years PES has always 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 2025 0 500M -500M -1B -1.5B -2B

1.2 Ratios

  • PES's Return On Assets of 5.19% is amongst the best of the industry. PES outperforms 100.00% of its industry peers.
  • 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 RankSector 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
PES.DE Yearly ROA, ROE, ROICPES.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -20 -40

1.3 Margins

  • PES has a better Profit Margin (9.37%) than 100.00% of its industry peers.
  • PES's Profit Margin has been stable in the last couple of years.
  • The Operating Margin of PES (14.23%) 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 52.00% is fine compared to the rest of the industry. PES outperforms 75.00% of its industry peers.
  • PES's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
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 2025 0 20 -20 40 -40

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6

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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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 2.54 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 2.54, 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.
  • The Debt to FCF ratio of PES (2.84) is better than 75.00% 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.
  • Looking at the Debt to Equity ratio, with a value of 0.39, PES is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 2.84
Altman-Z 2.54
ROIC/WACC0.78
WACC9.73%
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 2025 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 2.00 indicates that PES should not have too much problems paying its short term obligations.
  • PES's Current ratio of 2.00 is amongst the best of 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.
  • PES's Quick ratio of 1.94 is amongst the best of the industry. PES outperforms 100.00% of its industry peers.
Industry RankSector Rank
Current Ratio 2
Quick Ratio 1.94
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. PES.DE Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 4.09% over the past year.
  • Measured over the past years, PES shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.25% on average per year.
  • The Revenue has been growing slightly by 0.70% in the past year.
  • PES shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.04% yearly.
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 Year4.01%
Revenue Next 2Y4.45%
Revenue Next 3Y4.26%
Revenue Next 5Y4.36%

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 decreasing.
  • 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

  • Based on the Price/Earnings ratio of 15.43, the valuation of PES can be described as correct.
  • Based on the Price/Earnings ratio, PES is valued cheaper than 100.00% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.70, PES is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 14.16 indicates a correct valuation of PES.
  • The rest of the industry has a similar Price/Forward Earnings ratio as PES.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, PES is valued a bit cheaper.
Industry RankSector Rank
PE 15.43
Fwd PE 14.16
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.
  • Based on the Price/Free Cash Flow ratio, PES is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 11.94
EV/EBITDA 10.31
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 PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of PES may justify a higher PE ratio.
PEG (NY)1.65
PEG (5Y)0.89
EPS Next 2Y10.6%
EPS Next 3Y10.79%

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6

5. PES.DE Dividend Analysis

5.1 Amount

  • PES has a Yearly Dividend Yield of 2.57%. Purely for dividend investing, there may be better candidates out there.
  • 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 1.89, PES pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.57%

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

  • 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 more than its dividend. This makes the dividend growth sustainable.
DP47.76%
EPS Next 2Y10.6%
EPS Next 3Y10.79%
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 2025 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 (3/12/2026, 7:00:00 PM)

11.415

+0.16 (+1.47%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)02-27
Earnings (Next)05-01
Inst Owners88.52%
Inst Owner ChangeN/A
Ins Owners0.27%
Ins Owner ChangeN/A
Market Cap7.23B
Revenue(TTM)3.58B
Net Income(TTM)335.00M
Analysts75
Price Target14.18 (24.22%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.57%
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 RankSector Rank
PE 15.43
Fwd PE 14.16
P/S 1.74
P/FCF 11.94
P/OCF 9.5
P/B 1.71
P/tB 9.75
EV/EBITDA 10.31
EPS(TTM)0.74
EY6.48%
EPS(NY)0.81
Fwd EY7.06%
FCF(TTM)0.96
FCFY8.38%
OCF(TTM)1.2
OCFY10.53%
SpS6.55
BVpS6.68
TBVpS1.17
PEG (NY)1.65
PEG (5Y)0.89
Graham Number10.55
Profitability
Industry RankSector 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 RankSector 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 2.54
F-Score7
WACC9.73%
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 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.


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%.