PEARSON PLC (PSO)

15.98USD -0.93% (-0.15)

Over 1M: -2.3%

Style

Area Line Line with markers Steps Candles Hollow candles Bars

Candles and bars need the day’s open, high and low, and need room to be drawn in: past about a year of trading a body is thinner than a hairline, so those three offer the longest window that fits instead.

16 16.2 16.5 16.8

7 Aug 12 Aug 17 Aug 20 Aug 25 Aug 28 Aug 2 Sep

Financials Annual

Figures

Revenue Gross Profit Operating Income Cost of Revenue Operating Cash Flow Free Cash Flow Net Income

A share count and earnings a share are not here: neither is money, so neither can share this axis. Both have their own panel on All charts.

All charts ›

0 400M 800M 1.2B 1.6B 2B

2021 2022 2023 2024 2025

Gross Profit Operating Income Operating Cash Flow Free Cash Flow

Multiples & size

2025-12-31 · GBP

Market cap 7.51Bp

P/E TTM 22.4×p

EV/EBITDA 18.0×p

EV/EBIT 18.1×p

P/B 2.1×p

P/S TTM 2.1×p

EPS TTM 0.53

FCF yield 8.7%p

Dividend yield 2.1%p

Revenue growth +4.3%

EPS CAGR +21.5%

Gross margin 52.0%

Operating margin 14.2%

Net margin 9.4%

FCF margin 18.3%

ROIC 7.5%

Payout 47.6%

Net debt/EBITDA 3.3×

52-week range

252 trading days

11.76 15.98 (73%) 17.52

How it scores

For a valuation multiple, the low end is the good end.

Quality

How much of the revenue is really kept — and what did it take to earn it?

4.6

SBC / sales 1.1%

OE margin 17.2%

Adj. EBITDA margin 15.4%

Oper. margin 14.2%

ROIC 7.5%

Accruals -5.0%

FCF margin 18.3%

Gross margin 52.0%

OCF margin 18.3%

Profit margin 9.4%

ROA 5.2%

ROCE 10.5%

Asset turnover 0.55×

EBITDA margin 14.3%

OCF / EBIT 1.3×

ROE 9.2%

Capex / sales —

5 of 17 counted in the score. The rest are measures this model does not include here, or figures these filings do not carry — switch any of them on and the score changes.

Valuation

What does the price ask for what the company earns, owns and pays out?

8.3

EV/OE 14.9×

EV/EBIT 18.1×

FCF yield 8.7%

Div. yield 2.1%

EV/GP 4.9×

EV/Sales 2.6×

P/B 2.1×

P/E 22.4×

P/C 22.6×

Shareholder yield 2.1%

Fwd P/E —

PEG —

2 of 12 counted in the score. The rest are measures this model does not include here, or figures these filings do not carry — switch any of them on and the score changes.

Durability

How predictable is the revenue, and how much of it is already committed?

0.5

Cash-flow margin stability —

Gross margin stability across years —

Prepaid revenue growth —

RPO / sales —

RPO growth —

Revenue growth in the worst year on record —

Segment HHI —

0 of 7 counted in the score. The rest are measures this model does not include here, or figures these filings do not carry — switch any of them on and the score changes.

Resilience

Can the balance sheet absorb a bad year?

3.4

ND/EBITDA -0.18

Current ratio 1.6×

Interest cover 5.2×

Equity / Assets 56.5%

Quick ratio 1.5×

Debt / Eq 0.55×

Debt payback 2.6 yr

Net debt / Eq 0.46×

Payout 47.6%

Cash / Debt 0.16×

Cash runway —

F-score —

3 of 12 counted in the score. The rest are measures this model does not include here, or figures these filings do not carry — switch any of them on and the score changes.

Growth

Is the business getting bigger, and is it getting more profitable?

1.6

Sales/sh Y/Y +4.3%

EPS CAGR 4Y +21.5%

Shares change -3.5%

EPS Y/Y -20.0%

Div. growth —

EBIT CAGR —

EBIT Y/Y —

EPS next Y —

Gross profit Y/Y —

Most recent margin move —

Operating margin trend —

Sales CAGR 4Y —

Sales Q/Q —

1 of 13 counted in the score. The rest are measures this model does not include here, or figures these filings do not carry — switch any of them on and the score changes.

A measure absent from a block could not be computed from this company's filings. It is left out rather than scored as though it were bad, and the dimension is averaged over what remains. A score is measured against a fixed scale this model states; the bar is measured against the other companies, so the two can disagree — and where they do, that disagreement is the more interesting figure.