A Business at a Glance
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PEARSON PLC ORD 25P operates in the Publishing industry, Communication Services sector. Full business description from SEC filing not yet available.
| Metric | TTM | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Revenue | 4.5B | 4.5B | 4.6B | 4.7B | 4.7B | 4.4B |
| Net Income | 555M | 555M | 472M | 298M | 245M | 425M |
| EPS | $0.81 | $0.81 | $0.66 | $0.40 | $0.32 | $0.56 |
| Free Cash Flow | 760M | 760M | 618M | 375M | 360M | 433M |
| ROIC | 13.2% | 8.4% | 7.4% | 4.1% | 3.2% | 7.1% |
| Gross Margin | 51.0% | 51.0% | 49.9% | 46.7% | 49.0% | 48.0% |
| Debt/Equity | 0.00 | 0.36 | 0.29 | 0.32 | 0.35 | 0.40 |
| Dividends/Share | $0.30 | $0.30 | $0.20 | $0.26 | $0.27 | $0.25 |
| Operating Income | 692M | 692M | 622M | 334M | 252M | 530M |
| Operating Margin | 15.2% | 15.2% | 13.6% | 7.1% | 5.3% | 12.1% |
| ROE | 10.7% | 11.0% | 9.1% | 5.3% | 4.4% | 8.0% |
| Shares Outstanding | 673M | 673M | 712M | 738M | 757M | 755M |
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 | TTM |
|---|---|---|---|---|---|---|
| Income Statement | ||||||
| Revenue | 4.4B | 4.7B | 4.7B | 4.6B | 4.5B | 4.5B |
| Gross Margin | 48.0% | 49.0% | 46.7% | 49.9% | 51.0% | 51.0% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 1.6B | 2.1B | 1.9B | 1.7B | 1.6B | 1.6B |
| EBIT | 530M | 252M | 334M | 622M | 692M | 692M |
| Op. Margin | 12.1% | 5.3% | 7.1% | 13.6% | 15.2% | 15.2% |
| Net Income | 425M | 245M | 298M | 472M | 555M | 555M |
| Net Margin | 9.7% | 5.2% | 6.3% | 10.3% | 12.2% | 12.2% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | ||||||
| ROIC | 7.1% | 3.2% | 4.1% | 7.4% | 8.4% | 13.2% |
| ROE | 8.0% | 4.4% | 5.3% | 9.1% | 11.0% | 10.7% |
| ROA | 4.4% | 2.5% | 3.1% | 5.4% | 6.5% | 6.3% |
| Cash Flow | ||||||
| Op. Cash Flow | 501M | 448M | 445M | 655M | 802M | 802M |
| Free Cash Flow | 433M | 360M | 375M | 618M | 760M | 760M |
| Owner Earnings | 464M | 410M | 402M | 605M | 746M | 746M |
| CapEx | 68M | 88M | 70M | 37M | 42M | 42M |
| Maint. CapEx | 0 | 0 | 0 | 0 | 0 | 0 |
| Growth CapEx | N/A | N/A | N/A | N/A | N/A | 42M |
| D&A | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx/OCF | 13.6% | 19.6% | 15.8% | 5.7% | 5.3% | 5.3% |
| Capital Allocation | ||||||
| Dividends Paid | 189M | 205M | 194M | 193M | 200M | 200M |
| Dividend Yield | 3.5% | 2.6% | 2.7% | 2.5% | 2.2% | 2.9% |
| Share Buybacks | 7.7M | 22M | 46M | 44M | 42M | 42M |
| Buyback Yield | 0.1% | 0.4% | 0.6% | 0.5% | 0.4% | 0.6% |
| Stock-Based Comp | 37M | 38M | 43M | 50M | 56M | 56M |
| Debt Repayment | 296M | 230M | 211M | 356M | 1.2B | 1.2B |
| Balance Sheet | ||||||
| Net Debt | 741M | 751M | 1.1B | 1.1B | 1.2B | -695M |
| Cash & Equiv. | 1.4B | 1.3B | 688M | 389M | 695M | 695M |
| Long-Term Debt | N/A | N/A | N/A | 1.4B | 1.5B | 1.5B |
| Debt/Equity | 0.40 | 0.35 | 0.32 | 0.29 | 0.36 | 0.00 |
| Interest Coverage | 3.8 | 2.7 | 3.8 | 6.1 | 4.8 | 4.8 |
| Equity | 5.3B | 5.9B | 5.4B | 5.0B | 5.2B | 5.2B |
| Total Assets | 9.6B | 10.1B | 9.0B | 8.4B | 8.8B | 8.8B |
| Total Liabilities | 4.3B | 4.2B | 3.6B | 3.4B | 3.6B | 3.6B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | 1.1B | 1.5B | 1.1B | 930M | 1.1B | 1.1B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | ||||||
| EPS | 0.56 | 0.32 | 0.40 | 0.66 | 0.81 | 0.81 |
| Owner EPS | 0.61 | 0.54 | 0.54 | 0.85 | 1.11 | 1.11 |
| Book Value | 7.06 | 7.77 | 7.38 | 6.97 | 7.68 | 7.68 |
| Cash Flow/Share | 0.66 | 0.59 | 0.60 | 0.92 | 1.19 | 0.83 |
| Dividends/Share | 0.25 | 0.27 | 0.26 | 0.20 | 0.30 | 0.30 |
| Shares Out. | 755.1M | 757.4M | 737.8M | 711.9M | 672.9M | 672.9M |
| Valuation | ||||||
| P/E Ratio | 16.4 | 25.5 | 27.7 | 18.7 | 19.9 | 12.5 |
| P/FCF | 16.1 | 17.1 | 21.9 | 14.2 | 14.3 | 9.0 |
| EV/EBIT | 14.6 | 27.5 | 27.8 | 15.8 | 17.5 | 8.9 |
| Price/Book | 1.3 | 1.0 | 1.5 | 1.8 | 2.1 | 1.3 |
| Price/Sales | 1.6 | 1.3 | 1.7 | 1.9 | 2.4 | 1.5 |
| FCF Yield | 6.2% | 5.8% | 4.6% | 7.1% | 7.0% | 11.1% |
| Market Cap | 7.0B | 6.2B | 8.2B | 8.7B | 10.9B | 6.8B |
| Avg. Price | 7.19 | 10.35 | 9.76 | 10.98 | 13.36 | 10.17 |
| Year-End Price | 9.24 | 8.15 | 11.12 | 12.28 | 16.19 | 10.17 |
PEARSON PLC ORD 25P passes 5 of 9 quality checks, suggesting mixed fundamentals.
PEARSON PLC ORD 25P trades at 12.5x trailing earnings, compared to its 15-year median P/E of 19.9x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 9.0x vs a median of 16.1x. The company's 5-year average ROIC is 6.0% with a gross margin of 48.9%. Total shareholder yield (dividends + buybacks) is 3.5%. At current prices, the estimated annualized return to fair value is +11.1%.
PEARSON PLC ORD 25P (PSON-L) has a current P/E ratio of 12.5, compared to its historical median P/E of 19.9. The stock is currently considered Cheap based on its historical valuation range.
PEARSON PLC ORD 25P (PSON-L) has a 5-year average return on invested capital (ROIC) of 6.0%. This is below average and may indicate limited pricing power.
PEARSON PLC ORD 25P (PSON-L) has a market capitalization of $6.8B. It is classified as a mid-cap stock.
Yes, PEARSON PLC ORD 25P (PSON-L) pays a dividend with a trailing twelve-month yield of 2.92%. The company also returns capital through share buybacks, with a buyback yield of 0.62%.
Based on historical P/E analysis, PEARSON PLC ORD 25P (PSON-L) appears cheap. The current P/E of 12.5 is 37% below its historical median of 19.9. The estimated fair value CAGR (P/E method) is 5.0%.
PEARSON PLC ORD 25P (PSON-L) operates in the Publishing industry, within the Communication Services sector.
PEARSON PLC ORD 25P (PSON-L) reported annual revenue of $4.5 billion in its most recent fiscal year, based on SEC EDGAR filings.
PEARSON PLC ORD 25P (PSON-L) has a net profit margin of 12.2%. This is a healthy margin.
PEARSON PLC ORD 25P (PSON-L) generated $760 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
PEARSON PLC ORD 25P (PSON-L) has a debt-to-equity ratio of 0.36. This indicates a conservatively financed balance sheet.
PEARSON PLC ORD 25P (PSON-L) reported earnings per share (EPS) of $0.81 in its most recent fiscal year.
PEARSON PLC ORD 25P (PSON-L) has a return on equity (ROE) of 11.0%. This indicates moderate shareholder returns.
PEARSON PLC ORD 25P (PSON-L) has a 5-year average gross margin of 48.9%. This indicates decent pricing power.
The Ledger Terminal provides 5 years of financial data for PEARSON PLC ORD 25P (PSON-L), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
PEARSON PLC ORD 25P (PSON-L) has a book value per share of $7.68, based on its most recent annual SEC filing.
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