PSON Stock Overview
Pearson plc provides educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally.
Price History & Performance
|Historical stock prices|
|Current Share Price||UK£7.62|
|52 Week High||UK£8.84|
|52 Week Low||UK£5.71|
|1 Month Change||-1.30%|
|3 Month Change||22.27%|
|1 Year Change||-9.87%|
|3 Year Change||-5.25%|
|5 Year Change||9.80%|
|Change since IPO||114.95%|
Recent News & Updates
|PSON||GB Media||GB Market|
Return vs Industry: PSON matched the UK Media industry which returned -10% over the past year.
Return vs Market: PSON underperformed the UK Market which returned -2.5% over the past year.
|PSON Average Weekly Movement||8.0%|
|Media Industry Average Movement||7.1%|
|Market Average Movement||6.1%|
|10% most volatile stocks in GB Market||11.7%|
|10% least volatile stocks in GB Market||3.2%|
Stable Share Price: PSON is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: PSON's weekly volatility (8%) has been stable over the past year.
About the Company
Pearson plc provides educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. It operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Higher Education, and Workforce Skills. The Assessment & Qualifications segment offers Pearson VUE, US student assessment, clinical assessment, UK GCSE, and A levels and international academic qualifications.
Pearson Fundamentals Summary
|PSON fundamental statistics|
Is PSON overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|PSON income statement (TTM)|
|Cost of Revenue||UK£1.75b|
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
|Earnings per share (EPS)||0.21|
|Net Profit Margin||4.64%|
How did PSON perform over the long term?See historical performance and comparison
2.7%Current Dividend Yield
Is Pearson undervalued compared to its fair value and its price relative to the market?
Valuation Score 3/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PSON (£7.62) is trading below our estimate of fair value (£16.45)
Significantly Below Fair Value: PSON is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PSON is poor value based on its PE Ratio (35.6x) compared to the UK Media industry average (25.6x).
PE vs Market: PSON is poor value based on its PE Ratio (35.6x) compared to the UK market (15.3x).
Price to Earnings Growth Ratio
PEG Ratio: PSON is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: PSON is good value based on its PB Ratio (1.3x) compared to the GB Media industry average (2x).
How is Pearson forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PSON's forecast earnings growth (17% per year) is above the savings rate (0.9%).
Earnings vs Market: PSON's earnings (17% per year) are forecast to grow faster than the UK market (11.1% per year).
High Growth Earnings: PSON's earnings are forecast to grow, but not significantly.
Revenue vs Market: PSON's revenue (5.4% per year) is forecast to grow faster than the UK market (4.1% per year).
High Growth Revenue: PSON's revenue (5.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PSON's Return on Equity is forecast to be low in 3 years time (8.5%).
How has Pearson performed over the past 5 years?
Past Performance Score1/6
Past Performance Score 1/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PSON has a large one-off loss of £149.0M impacting its December 31 2021 financial results.
Growing Profit Margin: PSON's current net profit margins (4.6%) are lower than last year (9.1%).
Past Earnings Growth Analysis
Earnings Trend: PSON has become profitable over the past 5 years, growing earnings by 54.4% per year.
Accelerating Growth: PSON's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: PSON had negative earnings growth (-48.7%) over the past year, making it difficult to compare to the Media industry average (61.7%).
Return on Equity
High ROE: PSON's Return on Equity (3.7%) is considered low.
How is Pearson's financial position?
Financial Health Score6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: PSON's short term assets (£3.2B) exceed its short term liabilities (£1.6B).
Long Term Liabilities: PSON's short term assets (£3.2B) exceed its long term liabilities (£1.5B).
Debt to Equity History and Analysis
Debt Level: PSON has more cash than its total debt.
Reducing Debt: PSON's debt to equity ratio has reduced from 62.6% to 18.7% over the past 5 years.
Debt Coverage: PSON's debt is well covered by operating cash flow (40.7%).
Interest Coverage: PSON's interest payments on its debt are well covered by EBIT (6x coverage).
What is Pearson current dividend yield, its reliability and sustainability?
Dividend Score 2/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PSON's dividend (2.69%) is higher than the bottom 25% of dividend payers in the UK market (1.79%).
High Dividend: PSON's dividend (2.69%) is low compared to the top 25% of dividend payers in the UK market (4.82%).
Stability and Growth of Payments
Stable Dividend: PSON's dividend payments have been volatile in the past 10 years.
Growing Dividend: PSON's dividend payments have fallen over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its high payout ratio (97.2%), PSON's dividend payments are not well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (101.6%), PSON's dividend payments are not well covered by cash flows.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Andy Bird (57 yo)
Mr. Adam Bird, also known as Andy, CBE, has been Chief Executive of Pearson plc since October 19, 2020. He served as President of Walt Disney International Operations of Walt Disney Co., an affiliate of Th...
CEO Compensation Analysis
Compensation vs Market: Andy's total compensation ($USD8.81M) is above average for companies of similar size in the UK market ($USD3.24M).
Compensation vs Earnings: Andy's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: PSON's management team is considered experienced (2.1 years average tenure).
Experienced Board: PSON's board of directors are seasoned and experienced ( 14.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Pearson plc's employee growth, exchange listings and data sources
- Name: Pearson plc
- Ticker: PSON
- Exchange: LSE
- Founded: 1844
- Industry: Publishing
- Sector: Media
- Implied Market Cap: UK£5.663b
- Shares outstanding: 743.23m
- Website: https://plc.pearson.com
Number of Employees
- Pearson plc
- 80 Strand
- Greater London
- WC2R 0RL
- United Kingdom
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/18 00:00|
|End of Day Share Price||2022/05/18 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.