PSO Stock Analysis: Pearson | NYSE
Publishing | NYSE, USA | Market Cap: 9.556m USD | 12M Return: 16% | US7050151056 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 10.3M
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Pearson plc is a London-headquartered education company founded in 1844, operating through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Enterprise Learning & Skills, and Higher Education. Its offerings span professional and academic assessments, online and virtual schooling, English language testing and courseware, vocational qualifications, workforce credentialing, and college-level textbooks across the UK, North America, Asia Pacific, and other regions. The company trades on the NYSE under the ticker PSO and is classified within the Communication Services sector in the publishing sub-industry.
As an educational publisher, Pearson monetizes courseware primarily through textbook sales, digital subscriptions, and licensing to institutions and learners, while its assessment business generates recurring revenue from standardized testing services such as the Pearson Test of English and professional certification exams. The inclusion of online program management and virtual schools reflects the broader industry shift toward digital and remote learning delivery models.
- US Higher Education courseware revenue declines on digital shift
- English Language Testing demand grows in emerging markets
- US student assessment contracts boost Assessment & Qualifications margins
| Net Income: 319.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA 2.24 > 1.0 |
| NWC/Revenue: 31.17% < 20% (prev 37.76%; Δ -6.59% < -1%) |
| CFO/TA 0.13 > 3% & CFO 818.0m > Net Income 319.0m |
| Net Debt (1.87b) to EBITDA (1.11b): 1.67 < 3 |
| Current Ratio: 2.00 > 1.5 & < 3 |
| Outstanding Shares: last quarter (622.4m) vs 12m ago -9.46% < -2% |
| Gross Margin: 52.03% > 18% (prev 51.45%; Δ 0.58% > 0.5%) |
| Asset Turnover: 57.90% > 50% (prev 56.55%; Δ 1.35% > 0%) |
| Interest Coverage Ratio: 4.34 > 6 (EBIT TTM 543.1m / Interest Expense TTM 125.2m) |
| A: 0.18 (Total Current Assets 2.27b - Total Current Liabilities 1.13b) / Total Assets 6.33b |
| B: 0.05 (Retained Earnings 293.2m / Total Assets 6.33b) |
| C: 0.09 (EBIT TTM 543.1m / Avg Total Assets 6.28b) |
| D: 1.11 (Book Value of Equity 3.32b / Total Liabilities 3.00b) |
| Altman-Z'' = 3.07 = A |
| DSRI: 0.99 (Receivables 1.02b/999.0m, Revenue 3.64b/3.52b) |
| GMI: 0.99 (GM 51.45% / 52.03%) |
| AQI: 1.03 (AQ_t 0.61 / AQ_t-1 0.59) |
| SGI: 1.03 (Revenue 3.64b / 3.52b) |
| TATA: -0.08 (NI 319.0m - CFO 818.0m) / TA 6.33b) |
| Beneish M = -3.01 (Cap -4..+1) = AA |
As of September 29, 2026, the stock is trading at USD 15.94 with a total of 479,020 shares traded. Over the past week, the price has changed by +0.25%, over one month by -4.72%, over three months by +2.94% and over the past year by +15.97%.
Current recommended Stop Loss: 15.30 (which is 4% or 2.5 ATR below the current price).
Pearson has received a consensus analysts rating of 3.00. Therefore, it is recommended to hold PSO.
- StrongBuy: 0
- Buy: 0
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 15.7 | -1.5% |
Market Cap GBP = 7.21b (9.56b USD * 0.75483 USD.GBP)
P/E Trailing = 23.7313
P/E Forward = 17.7936
P/S = 2.6296
P/B = 2.1105
P/EG = 1.6624
Revenue TTM = 3.64b GBP
EBIT TTM = 543.1m GBP
EBITDA TTM = 1.11b GBP
Long Term Debt = 1.29b GBP (from longTermDebt, last quarter)
Short Term Debt = 69.6m GBP (from shortTermDebt, last quarter)
Debt = 2.20b GBP (from shortLongTermDebtTotal, last quarter) + Leases 456.0m
Net Debt = 1.87b GBP (calculated: Debt 2.20b - CCE 337.0m)
Enterprise Value = 9.08b GBP (7.21b + Debt 2.20b - CCE 337.0m)
Interest Coverage Ratio = 4.34 (Ebit TTM 543.1m / Interest Expense TTM 125.2m)
EV/FCF = 11.69x (Enterprise Value 9.08b / FCF TTM 776.6m)
FCF Yield = 8.55% (FCF TTM 776.6m / Enterprise Value 9.08b)
FCF Margin = 21.36% (FCF TTM 776.6m / Revenue TTM 3.64b)
Net Margin = 8.78% (Net Income TTM 319.0m / Revenue TTM 3.64b)
Gross Margin = 52.03% ((Revenue TTM 3.64b - Cost of Revenue TTM 1.74b) / Revenue TTM)
Gross Margin QoQ = 51.15% (prev 52.88%)
Tobins Q-Ratio = 1.43 (Enterprise Value 9.08b / Total Assets 6.33b)
Interest Expense / Debt = 5.69% (Interest Expense 125.2m / Debt 2.20b)
Taxrate = 28.15% (125.0m / 444.0m)
NOPAT = 390.2m (EBIT 543.1m * (1 - 28.15%))
Current Ratio = 2.00 (Total Current Assets 2.27b / Total Current Liabilities 1.13b)
Debt / Equity = 0.66 (Debt 2.20b / totalStockholderEquity, last quarter 3.32b)
Debt / EBITDA = 1.67 (Net Debt 1.87b / EBITDA 1.11b)
Debt / FCF = 2.40 (Net Debt 1.87b / FCF TTM 776.6m)
Total Stockholder Equity = 3.65b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.08% (Net Income 319.0m / Total Assets 6.33b)
RoE = 8.75% (Net Income TTM 319.0m / Total Stockholder Equity 3.65b)
RoCE = 10.99% (EBIT 543.1m / Capital Employed (Equity 3.65b + L.T.Debt 1.29b))
RoIC = 7.67% (NOPAT 390.2m / Invested Capital 5.09b)
WACC = 5.97% (E(7.21b)/V(9.42b) * Re(6.54%) + D(2.20b)/V(9.42b) * Rd(5.69%) * (1-Tc(0.28)))
Discount Rate = 6.54% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.92 | Cagr: -6.82%
[DCF] Terminal Value 77.97% ; FCFF base≈715.6m ; Y1≈820.3m ; Y5≈1.21b
[DCF] Fair Price = 27.12 (EV 18.2b - Net Debt 1.87b = Equity 16.3b / Shares 601.0m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: N/A | # QB: 0
Revenue Correlation: 84.91 | Revenue CAGR: 14.98% | SUE: N/A | # QB: 0
EPS current Year (2025-12-31): EPS=0.84 | Chg30d=+0.48% | Revisions=+25% | GrowthEPS=+9.1% | GrowthRev=+1.5%
EPS next Year (2026-12-31): EPS=0.88 | Chg30d=-0.41% | Revisions=+25% | GrowthEPS=+2.1% | GrowthRev=+4.0%
[Analyst] Revisions Ratio: +40% (up=2, down=0)