PEARSON PLC (PES.DE) Fundamental Analysis & Valuation
FRA:PES • GB0006776081
11.415 EUR
+0.16 (+1.47%)
Last: Mar 12, 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.
Overall PES gets a fundamental rating of 6 out of 10. We evaluated PES against 4 industry peers in the Diversified Consumer Services industry. PES scores excellent on profitability, but 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
- 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.
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.
- With a decent Return On Invested Capital value of 7.63%, PES is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| 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
- With an excellent Profit Margin value of 9.37%, PES belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of PES has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 14.23%, PES belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of PES has grown nicely.
- PES has a Gross Margin of 52.00%. This is in the better half of the industry: PES outperforms 75.00% of its industry peers.
- 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
- PES has an Altman-Z score of 2.54. This is not the best score and indicates that PES is in the grey zone with still only limited risk for bankruptcy at the moment.
- PES's Altman-Z score of 2.54 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 2.84, 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.
- A Debt/Equity ratio of 0.39 indicates that PES is not too dependend on debt financing.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.84 | ||
| Altman-Z | 2.54 |
ROIC/WACC0.78
WACC9.76%
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.
- The Current ratio of PES (2.00) is better than 100.00% of its industry peers.
- A Quick Ratio of 1.94 indicates that PES should not have too much problems paying its short term obligations.
- The Quick ratio of PES (1.94) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.94 |
3. PES.DE Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 4.09% over the past year.
- PES shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.25% yearly.
- PES shows a small growth in Revenue. In the last year, the Revenue has grown by 0.70%.
- 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.
- PES is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.36% yearly.
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. PES.DE Valuation Analysis
4.1 Price/Earnings Ratio
- PES is valuated correctly with a Price/Earnings ratio of 15.43.
- 100.00% of the companies in the same industry are more expensive than PES, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 25.71, PES is valued a bit cheaper.
- The Price/Forward Earnings ratio is 14.16, which indicates a correct valuation of PES.
- PES's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, PES is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.43 | ||
| Fwd PE | 14.16 |
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.
- PES's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PES is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.94 | ||
| EV/EBITDA | 10.31 |
4.3 Compensation for Growth
- PES's 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)1.65
PEG (5Y)0.89
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%. 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.
- PES's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| 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
- 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 Fundamentals: All Metrics, Ratios and Statistics
FRA:PES (3/12/2026, 7:00:00 PM)
11.415
+0.16 (+1.47%)
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 Cap7.23B
Revenue(TTM)3.58B
Net Income(TTM)335.00M
Analysts75
Price Target14.18 (24.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry 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 | 15.43 | ||
| 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 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 | 2.54 |
F-Score7
WACC9.76%
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%.