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Company Analysis

Pearson, Plc PSO

A comprehensive view of key metrics, scores, and financial health for Pearson, Plc

Overview of Pearson plc

PSO NYQ
Communication Services Publishing Framework: General Corporate Large Cap
Pearson plc (PSO), is a Large Cap company, in the Publishing industry, last closed at $17.31, about 13.1% undervalued vs fair value, +32.1% 1Y return, placing in the top 25% of its sector.
Metrics P/E 20.5× Rev Growth 0.7% ROE 8.7% Gross Margin 52.0% Div Yield 2.32%
USD 17.31
-0.35%
(Delayed)
• Vol 90d: 25.3%
52-Week Range
Market Cap
$11.01B
Enterprise Value
$12.32B
Overall Score
View breakdown
Overall
Growth
Fair
Profitability
Good
Health
Fair
Efficiency
Fair
Valuation
Good
Growth
Fair
Profitability
Good
Health
Fair
Efficiency
Fair
Valuation
Good
Completeness: 100%
Confidence: 97%
Updated: Oct 31
Top Beats
No strong beats yet

Quick Facts

Website https://plc.pearson.com
HQ London
Employees 17,116
Fiscal year Dec 31

Next Events

No upcoming events available.

Fair Value Snapshot

Bear Base Bull
$18
$20
$22
Current: $17.31 +13% vs base

Engine Room Money Flow™

Large Cap

Corporate Free Cash Flow - Where revenue goes and how value is created

Flow Steps
Revenue
GBP 3.6B
0.7%%
Gross Profit
GBP 1.9B
2.7%%
Operating Income
GBP 507.0M
-6.3%%
Net Income
GBP 335.0M
-22.8%%
Money Flow Bridge
Flow Direction: Money moves from left to right
Components: Breakdown shows composition of each stage
Industry-Specific: Corporate Free Cash Flow

Quality & Reliability Indicators

Cash Conversion Ratio FY2025
155.8%
Excellent

Operating Cash Flow / Net Income

FCF / Net Income - measures how well earnings convert to cash

Locked Metric
-
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Owner's Pocket - Capital Allocation

Total Returned to Shareholders

Combined dividends, buybacks, and debt reduction

GBP 512.0M
98.1% of FCF

Where It Leaks

Cash Flow Health some concerns
Moderate efficiency issues detected. Review active leaks below for improvement areas.
2
Active Leaks
1/2
Improving
0
High Impact
0
Critical
Locked Leak
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Moat Analysis Corporate Default

Competitive Advantage Assessment

Evaluating Pearson, Plc's durable competitive advantages across 6 defense dimensions

Overall Moat Strength
73
/100
Moderate
Scores based on quantitative metrics and qualitative factors
Full moat analysis

Key strengths

  • ROIC Sustainably Above Peers ROIC at 78.1th percentile exceeds peers and WACC, demonstrating superior capital allocation.
  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.72), demonstrating pricing resilience across cycles.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Cost Advantage

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Signals, strengths and risks for Customer Stickiness

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Resilience

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Signals, strengths and risks for Scale & Market Position

Trade-Off Ledger™

Where management spends the performance budget - Growth, Profitability, or Safety

vs Industry Peers 97% Coverage
Trade-Off Triangle Visualization A ternary plot showing PSO's balance between Growth (23.4%), Profitability (43.5%), and Safety (33.2%). Growth 23% Safety 33% Profitability 43%

Click axes to expand details. Marker shows current allocation.

3-Year Trend Analysis Locked
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Growth

41th percentile vs peers
41
Key Signals
Rev Growth YoY 0.7% 39p EPS CAGR 3Y 15.9% 71p Revenue CAGR 3Y -2.4% 31p EPS Growth YoY -20.0% 34p TSR -10.9% 38p
Strengths
  • Superior capital returns - 2 return metrics above peer median
  • Operating Margin in top 20% of peers (14.2%, 80th percentile)
  • FCF Margin in top 20% of peers (14.6%, 85th percentile)
  • Consistently strong margins across 7 metrics
Risks

No significant risks identified for this axis.

Profitability

76th percentile vs peers
76
Key Signals
Strengths
Risks
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Safety

58th percentile vs peers
58
Key Signals
Strengths
Safety drilldowns are available to premium members.

Two Futures

Scenario-based fair value ranges for Pearson, Plc.

Loading valuation model...
Unable to Compute Fair Value

This company cannot be valued using standard models.

What this means: The Scenario Theatre requires financial data (revenue, cash flow, shares outstanding) to calculate fair value estimates. This data may be unavailable for:

  • Recently listed companies (IPOs, SPACs)
  • Shell companies or holding companies
  • Companies that haven't filed recent financials
  • Foreign companies with limited data coverage
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Bear
-
- - -
- upside
-
Base
$19.57
- - -
+13.1% vs current
Snapshot base estimate
Bull
-
- - -
- upside
-
Fair Value Range Current: $-
$- $- $-
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