PEARSON PLC (PES.DE) Stock Fundamental Analysis

FRA:PES • GB0006776081

10.385 EUR
-0.06 (-0.62%)
Last: Feb 12, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

6

Taking everything into account, PES scores 6 out of 10 in our fundamental rating. PES was compared to 4 industry peers in the Diversified Consumer Services industry. Both the health and profitability get an excellent rating, making PES a very profitable company, without any liquidiy or solvency issues. PES has a valuation in line with the averages, but it does not seem to be growing. PES also has an excellent dividend rating. This makes PES very considerable for dividend investing!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • PES had positive earnings in the past year.
  • PES had a positive operating cash flow in the past year.
  • In the past 5 years PES has always been profitable.
  • Each year in the past 5 years PES had a positive operating cash flow.
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 0 500M -500M -1B -1.5B -2B

1.2 Ratios

  • The Return On Assets of PES (7.08%) is better than 100.00% of its industry peers.
  • PES's Return On Equity of 12.29% is amongst the best of the industry. PES outperforms 100.00% of its industry peers.
  • With a decent Return On Invested Capital value of 8.65%, PES is doing good in the industry, outperforming 75.00% of the companies in the same industry.
  • PES had an Average Return On Invested Capital over the past 3 years of 6.70%. This is below the industry average of 8.77%.
  • The 3 year average ROIC (6.70%) for PES is below the current ROIC(8.65%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 7.08%
ROE 12.29%
ROIC 8.65%
ROA(3y)5.07%
ROA(5y)4.41%
ROE(3y)8.59%
ROE(5y)7.58%
ROIC(3y)6.7%
ROIC(5y)5.84%
PES.DE Yearly ROA, ROE, ROICPES.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -20 -40

1.3 Margins

  • PES has a better Profit Margin (12.53%) than 100.00% of its industry peers.
  • In the last couple of years the Profit Margin of PES has grown nicely.
  • Looking at the Operating Margin, with a value of 15.77%, 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.
  • The Gross Margin of PES (51.45%) is better than 75.00% of its industry peers.
  • PES's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 15.77%
PM (TTM) 12.53%
GM 51.45%
OM growth 3Y25.2%
OM growth 5Y6.89%
PM growth 3Y33.26%
PM growth 5Y12.36%
GM growth 3Y1.31%
GM growth 5Y-0.38%
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 0 20 -20 40 -40

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. Health

2.1 Basic Checks

  • PES has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for PES has been reduced compared to 1 year ago.
  • PES has less shares outstanding than it did 5 years ago.
  • PES has a worse debt/assets ratio than last year.
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 2.59 indicates that PES is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • PES has a better Altman-Z score (2.59) than 75.00% of its industry peers.
  • PES has a debt to FCF ratio of 2.42. This is a good value and a sign of high solvency as PES would need 2.42 years to pay back of all of its debts.
  • PES has a better Debt to FCF ratio (2.42) than 75.00% of its industry peers.
  • PES has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.40, PES is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 2.42
Altman-Z 2.59
ROIC/WACC0.94
WACC9.17%
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 1B 2B 3B 4B

2.3 Liquidity

  • A Current Ratio of 2.31 indicates that PES has no problem at all paying its short term obligations.
  • PES has a Current ratio of 2.31. This is amongst the best in the industry. PES outperforms 100.00% of its industry peers.
  • PES has a Quick Ratio of 2.24. This indicates that PES is financially healthy and has no problem in meeting its short term obligations.
  • PES has a better Quick ratio (2.24) than 100.00% of its industry peers.
Industry RankSector Rank
Current Ratio 2.31
Quick Ratio 2.24
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

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. Growth

3.1 Past

  • PES shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.29%.
  • PES shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.15% yearly.
  • The Revenue has decreased by -0.82% in the past year.
  • Measured over the past years, PES shows a decrease in Revenue. The Revenue has been decreasing by -1.70% on average per year.
EPS 1Y (TTM)3.29%
EPS 3Y20.87%
EPS 5Y1.15%
EPS Q2Q%-5.47%
Revenue 1Y (TTM)-0.82%
Revenue growth 3Y1.19%
Revenue growth 5Y-1.7%
Sales Q2Q%-1.82%

3.2 Future

  • PES is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.15% yearly.
  • PES is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.66% yearly.
EPS Next Y3.3%
EPS Next 2Y6.83%
EPS Next 3Y8.22%
EPS Next 5Y7.15%
Revenue Next Year-0.14%
Revenue Next 2Y2.5%
Revenue Next 3Y3.12%
Revenue Next 5Y2.66%

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 accelerating.
  • 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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Find the best growth stocksShow best growing peers

5

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 15.05 indicates a correct valuation of PES.
  • Based on the Price/Earnings ratio, PES is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
  • PES's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.67.
  • The Price/Forward Earnings ratio is 12.96, which indicates a correct valuation of PES.
  • PES's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 27.69. PES is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 15.05
Fwd PE 12.96
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 75.00% of the companies in the same industry.
  • 75.00% of the companies in the same industry are more expensive than PES, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 9.31
EV/EBITDA 8.93
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 high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PES does not grow enough to justify the current Price/Earnings ratio.
  • The excellent profitability rating of PES may justify a higher PE ratio.
PEG (NY)4.57
PEG (5Y)13.07
EPS Next 2Y6.83%
EPS Next 3Y8.22%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. Dividend

5.1 Amount

  • PES has a Yearly Dividend Yield of 2.72%.
  • PES's Dividend Yield is a higher than the industry average which is at 2.05.
  • PES's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
Industry RankSector Rank
Dividend Yield 2.72%

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 0.05 0.1 0.15 0.2

5.3 Sustainability

  • PES pays out 36.05% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of PES is growing, but earnings are growing more, so the dividend growth is sustainable.
DP36.05%
EPS Next 2Y6.83%
EPS Next 3Y8.22%
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 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

More info and screens

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PEARSON PLC

FRA:PES (2/12/2026, 7:00:00 PM)

10.385

-0.06 (-0.62%)

Chartmill FA Rating
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)N/A
Earnings (Next)02-27
Inst Owners79.26%
Inst Owner ChangeN/A
Ins Owners0.2%
Ins Owner ChangeN/A
Market Cap6.60B
Revenue(TTM)3.52B
Net Income(TTM)441.00M
Analysts68.57
Price Target14.28 (37.51%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.72%
Yearly Dividend0.26
Dividend Growth(5Y)4%
DP36.05%
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)-2.48%
PT rev (3m)-2%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.51%
EPS NY rev (3m)-0.37%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.06%
Valuation
Industry RankSector Rank
PE 15.05
Fwd PE 12.96
P/S 1.63
P/FCF 9.31
P/OCF 7.71
P/B 1.6
P/tB 7.36
EV/EBITDA 8.93
EPS(TTM)0.69
EY6.64%
EPS(NY)0.8
Fwd EY7.72%
FCF(TTM)1.11
FCFY10.74%
OCF(TTM)1.35
OCFY12.97%
SpS6.37
BVpS6.5
TBVpS1.41
PEG (NY)4.57
PEG (5Y)13.07
Graham Number10.04
Profitability
Industry RankSector Rank
ROA 7.08%
ROE 12.29%
ROCE 10.65%
ROIC 8.65%
ROICexc 9.26%
ROICexgc 21.92%
OM 15.77%
PM (TTM) 12.53%
GM 51.45%
FCFM 17.5%
ROA(3y)5.07%
ROA(5y)4.41%
ROE(3y)8.59%
ROE(5y)7.58%
ROIC(3y)6.7%
ROIC(5y)5.84%
ROICexc(3y)7.48%
ROICexc(5y)7.31%
ROICexgc(3y)20.27%
ROICexgc(5y)22.68%
ROCE(3y)8.26%
ROCE(5y)7.2%
ROICexgc growth 3Y7.27%
ROICexgc growth 5Y10.63%
ROICexc growth 3Y17.53%
ROICexc growth 5Y6.81%
OM growth 3Y25.2%
OM growth 5Y6.89%
PM growth 3Y33.26%
PM growth 5Y12.36%
GM growth 3Y1.31%
GM growth 5Y-0.38%
F-Score8
Asset Turnover0.57
Health
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 2.42
Debt/EBITDA 1.84
Cap/Depr 58.45%
Cap/Sales 3.64%
Interest Coverage 10.09
Cash Conversion 96.12%
Profit Quality 139.68%
Current Ratio 2.31
Quick Ratio 2.24
Altman-Z 2.59
F-Score8
WACC9.17%
ROIC/WACC0.94
Cap/Depr(3y)49.36%
Cap/Depr(5y)46.7%
Cap/Sales(3y)3.58%
Cap/Sales(5y)3.97%
Profit Quality(3y)103.3%
Profit Quality(5y)94.38%
High Growth Momentum
Growth
EPS 1Y (TTM)3.29%
EPS 3Y20.87%
EPS 5Y1.15%
EPS Q2Q%-5.47%
EPS Next Y3.3%
EPS Next 2Y6.83%
EPS Next 3Y8.22%
EPS Next 5Y7.15%
Revenue 1Y (TTM)-0.82%
Revenue growth 3Y1.19%
Revenue growth 5Y-1.7%
Sales Q2Q%-1.82%
Revenue Next Year-0.14%
Revenue Next 2Y2.5%
Revenue Next 3Y3.12%
Revenue Next 5Y2.66%
EBIT growth 1Y9.47%
EBIT growth 3Y26.69%
EBIT growth 5Y5.08%
EBIT Next Year39.42%
EBIT Next 3Y15.89%
EBIT Next 5Y14.3%
FCF growth 1Y133.33%
FCF growth 3Y49.68%
FCF growth 5Y23.37%
OCF growth 1Y82.8%
OCF growth 3Y24.36%
OCF growth 5Y11.19%

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 8 / 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 3.3% in the next year.


How sustainable is the dividend of PEARSON PLC (PES.DE) stock?

The dividend rating of PEARSON PLC (PES.DE) is 7 / 10 and the dividend payout ratio is 36.05%.