Stock AnalizPearson PLC PSO
Books · data as of November 13, 2026
Pearson PLC (PSO) is a consumer discretionary company listed in the US with a market value of about $10.5B. In the twelve months to June 30, 2026 it had revenue of $4.8B and net income of $421M, a net margin of 8.8%.
Its overall Stock Analiz score is 2.2 out of 5 (weak). The strongest part is financial health (5/5); the weakest is future growth (0/5).
Key numbers: a P/E of 26.0, a price to free cash flow of 12.1, 5-year revenue growth of 1% a year, a 5-year average ROIC of 6%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 17% below the current price.
Score: 2.2 / 5
Checks passed
- P/FCF below 20
- Profitable 5 years in a row
- More cash than debt, or low debt to equity
- Positive free cash flow
- Interest covered more than 5 times
- Debt below 3 years of free cash flow
- Liabilities below 60% of assets
- Pays a dividend
Checks not passed
- P/E below 25
- P/E below the industry median
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- Revenue growth above 10% last year
- 3-year revenue growth above 10% a year
- Profit margin improving
- 3-year free cash flow growth above 10% a year
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $4.8B | $4.8B | $4.5B | $4.7B | $4.6B | $4.6B | $4.6B | $5.1B | $5.3B | $6.1B | $5.6B |
| Net income | $421M | $451M | $544M | $481M | $291M | $239M | $450M | $349M | $753M | $549M | -$2.9B |
| Free cash flow | $861M | — | — | — | — | $353M | $459M | $415M | $502M | $292M | $396M |
| EPS (diluted) | $0.64 | $0.75 | $0.90 | $0.80 | $0.48 | $0.40 | $0.75 | $0.58 | $1.25 | $0.91 | $-4.78 |
| Net margin | 8.8% | 9.4% | 12.2% | 10.3% | 6.3% | 5.2% | 9.7% | 6.8% | 14.2% | 9.0% | -51.3% |
| ROIC | — | 7.3% | 8.4% | 7.5% | 3.6% | 2.5% | 6.2% | 3.6% | 8.3% | 8.6% | -33.5% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
Frequently asked questions
What is Pearson’s P/E ratio?
About 26.0, based on the last twelve months of diluted earnings per share (forward P/E about 17.7).
Is Pearson stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 17% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Pearson pay a dividend?
Yes. The dividend yield is about 2.02%, and it has paid dividends for 10 years in our data.
Is Pearson a good stock to buy?
We do not give buy or sell advice. Pearson scores 2.2 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
Similar companies
Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.