Pearson plc (PSO) fundamental analysis — strengths, weaknesses & financial health based on data analysis
No significant weaknesses identified
* These insights are generated automatically based on available financial data. Please conduct your own research before making investment decisions.
Pearson plc (PSO) stock price & volume — 10-year historical chart
Pearson plc (PSO) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Pearson plc (PSO) EPS & revenue vs analyst estimates — last 4 quarters
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q1 2026Latest | Feb 27, 2026 | $0.53vs $0.52+1.1% | $2.5Bvs $2.5B-1.1% |
| Q1 2025 | Feb 27, 2025 | $0.51vs $0.46+11.1% | $2.2Bvs $2.3B-0.1% |
| Q3 2024 | Jul 29, 2024 | $0.29vs $0.30-3.1% | $2.2Bvs $2.3B-2.5% |
| Q2 2024 | Apr 26, 2024 | $0.34vs $0.40-15.9% | $2.3Bvs $2.3B-3.3% |
Pearson plc (PSO) competitors in Education and academic publishers — business model, growth, and fundamentals comparison
Pearson plc (PSO) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Pearson plc (PSO) annual income statement — 10-year revenue, gross profit & net income history
| Line item | Dec'16 | Dec'17 | Dec'18 | Dec'19 | Dec'20 | Dec'21 | Dec'22 | Dec'23 | Dec'24 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales/Revenue | 4.55B | 4.51B | 4.13B | 3.87B | 3.4B | 3.43B | 3.84B | 3.67B | 3.55B | 7.07B |
| Revenue Growth % | 1.88% | -0.86% | -8.51% | -6.3% | -12.2% | 0.91% | 12.05% | -4.35% | -3.32% | -6.38% |
| Cost of Goods Sold | 2.09B | 2.07B | 1.94B | 1.86B | 1.77B | 1.75B | 2.05B | 1.84B | 1.74B | 3.46B |
| COGS % of Revenue | 45.98% | 45.78% | 47.06% | 48.02% | 52.02% | 50.96% | 53.27% | 50.05% | 49.01% | - |
| Gross Profit | 2.46B▲ 0% | 2.45B▼ 0.5% | 2.19B▼ 10.7% | 2.01B▼ 8.0% | 1.63B▼ 18.9% | 1.68B▲ 3.1% | 1.79B▲ 6.8% | 1.83B▲ 2.2% | 1.81B▼ 1.3% | 3.61B▲ 0% |
| Gross Margin % | 54.02% | 54.22% | 52.94% | 51.98% | 47.98% | 49.04% | 46.73% | 49.95% | 50.99% | 51.01% |
| Gross Profit Growth % | -1.13% | -0.49% | -10.67% | -8.01% | -18.95% | 3.13% | 6.78% | 2.23% | -1.31% | - |
| Operating Expenses | 2.5B | 2.2B | 1.91B | 1.81B | 1.22B | 1.5B | 1.52B | 1.34B | 1.27B | 2.56B |
| OpEx % of Revenue | 55.03% | 48.79% | 46.19% | 46.68% | 35.88% | 43.7% | 39.68% | 36.39% | 35.75% | - |
| Selling, General & Admin | 2.24B | 2.17B | 1.87B | 1.69B | 1.45B | 1.39B | 1.45B | 1.36B | 1.31B | 2.56B |
| SG&A % of Revenue | 49.12% | 48.15% | 45.34% | 43.68% | 42.6% | 40.4% | 37.7% | 37.1% | 36.8% | - |
| Research & Development | 0 | 14M | 14M | 13M | 280M | 279M | 303M | 0 | 0 | 212.5M |
| R&D % of Revenue | - | 0.31% | 0.34% | 0.34% | 8.24% | 8.14% | 7.89% | - | - | - |
| Other Operating Expenses | -60M | 0 | 21M | 103M | -508M | -166M | -227M | -26M | -37M | -2M |
| Operating Income | -2.5B▲ 0% | 451M▲ 118.1% | 553M▲ 22.6% | 275M▼ 50.3% | 411M▲ 49.5% | 183M▼ 55.5% | 271M▲ 48.1% | 498M▲ 83.8% | 541M▲ 8.6% | 1.05B▲ 0% |
| Operating Margin % | -54.85% | 9.99% | 13.39% | 7.11% | 12.1% | 5.34% | 7.06% | 13.55% | 15.23% | 14.83% |
| Operating Income Growth % | -518.07% | 118.06% | 22.62% | -50.27% | 49.45% | -55.47% | 48.09% | 83.76% | 8.63% | - |
| EBITDA | -1.78B | 1.1B | 1.14B | 870M | 996M | 701M | 822M | 1.04B | 1.07B | 1.9B |
| EBITDA Margin % | -39.17% | 24.42% | 27.71% | 22.49% | 29.32% | 20.45% | 21.4% | 28.33% | 30.04% | 26.91% |
| EBITDA Growth % | -324% | 161.81% | 3.81% | -23.95% | 14.48% | -29.62% | 17.26% | 26.64% | 2.5% | 3.76% |
| D&A (Non-Cash Add-back) | 714M | 651M | 591M | 595M | 585M | 518M | 551M | 543M | 526M | 854M |
| EBIT | -2.58B | 442M | 496M | 245M | 232M | 233M | 379M | 549M | 589M | 1.13B |
| Net Interest Income | -48M | -82M | -14M | -28M | -55M | -53M | -2M | -11M | -24M | -50M |
| Interest Income | 26M | 23M | 36M | 41M | 24M | 15M | 67M | 50M | 55M | 168M |
| Interest Expense | 59M | 79M | 91M | 84M | 79M | 68M | 69M | 61M | 79M | 218M |
| Other Income/Expense | -60M | -30M | -55M | -43M | -31M | -6M | 51M | -5M | -31M | -68M |
| Pretax Income | -2.56B▲ 0% | 421M▲ 116.5% | 498M▲ 18.3% | 232M▼ 53.4% | 380M▲ 63.8% | 177M▼ 53.4% | 322M▲ 81.9% | 493M▲ 53.1% | 510M▲ 3.4% | 979M▲ 0% |
| Pretax Margin % | -56.17% | 9.33% | 12.06% | 6% | 11.19% | 5.16% | 8.38% | 13.42% | 14.36% | 13.85% |
| Income Tax | -222M | 13M | -92M | -34M | 50M | -1M | 79M | 113M | 75M | 191M |
| Effective Tax Rate % | 8.68% | 3.09% | -18.47% | -14.66% | 13.16% | -0.56% | 24.53% | 22.92% | 14.71% | 19.51% |
| Net Income | -2.34B▲ 0% | 406M▲ 117.4% | 588M▲ 44.8% | 264M▼ 55.1% | 330M▲ 25.0% | 177M▼ 46.4% | 242M▲ 36.7% | 378M▲ 56.2% | 434M▲ 14.8% | 790M▲ 0% |
| Net Margin % | -51.34% | 9% | 14.24% | 6.82% | 9.71% | 5.16% | 6.3% | 10.29% | 12.22% | 11.18% |
| Net Income Growth % | -383.96% | 117.37% | 44.83% | -55.1% | 25% | -46.36% | 36.72% | 56.2% | 14.81% | 38.6% |
| Net Income (Continuing) | -2.33B | 330M | 590M | 266M | 330M | 178M | 243M | 380M | 435M | 789M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 4M | 8M | 9M | 10M | 9M | 10M | 13M | 14M | 15M | 16M |
| EPS (Diluted) | -2.87▲ 0% | 0.50▲ 117.4% | 0.76▲ 52.0% | 0.34▼ 55.3% | 0.41▲ 20.6% | 0.23▼ 43.9% | 0.33▲ 43.5% | 0.53▲ 60.6% | 0.63▲ 18.9% | 1.18▲ 0% |
| EPS Growth % | -384.16% | 117.42% | 52% | -55.26% | 20.59% | -43.9% | 43.48% | 60.61% | 18.87% | 49.35% |
| EPS (Basic) | -2.87 | 0.50 | 0.76 | 0.34 | 0.41 | 0.23 | 0.33 | 0.53 | 0.63 | - |
| Diluted Shares Outstanding | 814.8M | 813.7M | 778.7M | 777.5M | 755.4M | 759.1M | 742M | 717.3M | 684M | 670.7M |
| Basic Shares Outstanding | 814.8M | 813.4M | 778.1M | 777M | 755.4M | 754.1M | 738.1M | 717.27M | 688.6M | 669.39M |
| Dividend Payout Ratio | - | 78.33% | 23.13% | 55.68% | 44.24% | 84.18% | 64.46% | 40.74% | 35.94% | - |
Pearson plc (PSO) balance sheet — assets, liabilities & shareholders' equity
| Line item | Dec'16 | Dec'17 | Dec'18 | Dec'19 | Dec'20 | Dec'21 | Dec'22 | Dec'23 | Dec'24 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Current Assets | 4.08B | 3.29B | 3.38B | 3.17B | 3.34B | 3.22B | 2.82B | 2.43B | 2.73B | 2.34B |
| Cash & Short-Term Investments | 1.47B | 526M | 568M | 437M | 1.1B | 937M | 558M | 312M | 543M | 347M |
| Cash Only | 1.46B | 518M | 568M | 437M | 1.1B | 937M | 558M | 312M | 543M | 347M |
| Short-Term Investments | 10M | 8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 1.21B | 740M | 1.07B | 1.13B | 825M | 882M | 856M | 831M | 1.01B | 999M |
| Days Sales Outstanding | 97.1 | 59.85 | 94.59 | 106.89 | 88.64 | 93.91 | 81.34 | 82.56 | 103.89 | 50.63 |
| Inventory | 235M | 148M | 164M | 169M | 129M | 98M | 105M | 91M | 74M | 71M |
| Days Inventory Outstanding | 40.98 | 26.15 | 30.81 | 33.2 | 26.65 | 20.48 | 18.73 | 18.06 | 15.51 | 8.56 |
| Other Current Assets | 1.3B | 1.79B | 1.67B | 1.3B | 1.1B | 1.1B | 1.1B | 861M | 1.1B | 925M |
| Total Non-Current Assets | 5.98B | 4.6B | 4.53B | 4.48B | 4.11B | 4.12B | 4.51B | 4.29B | 4.16B | 3.88B |
| Property, Plant & Equipment | 343M | 281M | 237M | 618M | 515M | 366M | 250M | 217M | 216M | 203M |
| Fixed Asset Turnover | 13.27x | 16.06x | 17.42x | 6.26x | 6.60x | 9.37x | 15.36x | 16.93x | 16.44x | 33.54x |
| Goodwill | 2.34B | 2.03B | 2.11B | 2.14B | 2.09B | 2.15B | 2.48B | 2.43B | 2.44B | 2.29B |
| Intangible Assets | 1.1B | 934M | 898M | 761M | 648M | 624M | 697M | 657M | 589M | 524M |
| Long-Term Investments | 1.3B | 467M | 618M | 464M | 144M | 137M | 158M | 165M | 153M | 841M |
| Other Non-Current Assets | 443M | 796M | 605M | 436M | 678M | 793M | 864M | 819M | 717M | 2.74B |
| Total Assets | 10.07B▲ 0% | 7.89B▼ 21.6% | 7.91B▲ 0.2% | 7.65B▼ 3.2% | 7.45B▼ 2.6% | 7.34B▼ 1.4% | 7.31B▼ 0.5% | 6.73B▼ 8.0% | 6.89B▲ 2.5% | 6.22B▲ 0% |
| Asset Turnover | 0.45x | 0.57x | 0.52x | 0.51x | 0.46x | 0.47x | 0.53x | 0.55x | 0.52x | 1.06x |
| Asset Growth % | -13.49% | -21.64% | 0.22% | -3.23% | -2.6% | -1.45% | -0.46% | -7.96% | 2.45% | -15.24% |
| Total Current Liabilities | 1.92B | 2.21B | 2.13B | 1.49B | 1.65B | 1.58B | 1.48B | 1.4B | 1.48B | 1.01B |
| Accounts Payable | 333M | 265M | 311M | 358M | 340M | 351M | 348M | 317M | 273M | 902M |
| Days Payables Outstanding | 58.07 | 46.82 | 58.42 | 70.33 | 70.23 | 73.33 | 62.08 | 62.92 | 57.23 | 66.61 |
| Short-Term Debt | 39M | 15M | 66M | 18M | 181M | 87M | 26M | 3M | 250M | 11M |
| Deferred Revenue (Current) | 65M | 541M | 321M | 777M | 304M | 330M | 340M | 5M | 0 | 32M |
| Other Current Liabilities | 437M | 1.43B | 989M | -1.06B | 410M | 252M | 181M | 383M | 846M | 25M |
| Current Ratio | 2.12x | 1.49x | 1.58x | 2.13x | 2.03x | 2.04x | 1.91x | 1.73x | 1.85x | 1.85x |
| Quick Ratio | 2.00x | 1.42x | 1.51x | 2.01x | 1.95x | 1.98x | 1.83x | 1.67x | 1.80x | 1.80x |
| Cash Conversion Cycle | 80.01 | 39.18 | 66.97 | 69.76 | 45.06 | 41.05 | 37.99 | 37.7 | 62.17 | -7.42 |
| Total Non-Current Liabilities | 3.79B | 1.66B | 1.25B | 1.83B | 1.67B | 1.48B | 1.43B | 1.33B | 1.36B | 1.61B |
| Long-Term Debt | 2.4B | 1.06B | 672M | 823M | 787M | 680M | 610M | 611M | 705M | 1.01B |
| Capital Lease Obligations | 4M | 4M | 2M | 749M | 610M | 565M | 534M | 483M | 452M | 1.81B |
| Deferred Tax Liabilities | 466M | 164M | 136M | 48M | 62M | 40M | 37M | 46M | 63M | 177M |
| Other Non-Current Liabilities | 603M | 397M | 370M | 160M | 161M | 142M | 189M | 122M | 79M | 494M |
| Total Liabilities | 5.72B | 3.87B | 3.38B | 3.33B | 3.32B | 3.06B | 2.91B | 2.74B | 2.84B | 2.62B |
| Total Debt | 2.47B | 1.08B | 720M | 1.68B | 1.65B | 1.4B | 1.24B | 1.16B | 1.47B | 1.5B |
| Net Debt | 1.01B | 567M | 152M | 1.24B | 554M | 463M | 683M | 849M | 929M | 1.15B |
| Debt / Equity | 0.57x | 0.27x | 0.16x | 0.39x | 0.40x | 0.33x | 0.28x | 0.29x | 0.36x | 0.36x |
| Debt / EBITDA | - | 0.98x | 0.63x | 1.93x | 1.66x | 2.00x | 1.51x | 1.12x | 1.38x | 0.79x |
| Net Debt / EBITDA | - | 0.51x | 0.13x | 1.43x | 0.56x | 0.66x | 0.83x | 0.82x | 0.87x | 0.87x |
| Interest Coverage | -42.32x | 5.71x | 6.08x | 3.27x | 5.20x | 2.69x | 3.93x | 8.16x | 6.85x | 5.19x |
| Total Equity | 4.35B▲ 0% | 4.02B▼ 7.5% | 4.53B▲ 12.5% | 4.32B▼ 4.5% | 4.13B▼ 4.4% | 4.28B▲ 3.5% | 4.42B▲ 3.2% | 3.99B▼ 9.7% | 4.05B▲ 1.6% | 3.6B▲ 0% |
| Equity Growth % | -32.25% | -7.52% | 12.53% | -4.46% | -4.37% | 3.53% | 3.15% | -9.67% | 1.63% | -22.45% |
| Book Value per Share | 5.34 | 4.94 | 5.81 | 5.56 | 5.47 | 5.64 | 5.95 | 5.56 | 5.93 | 5.37 |
| Total Shareholders' Equity | 4.34B | 4.01B | 4.52B | 4.31B | 4.13B | 4.27B | 4.4B | 3.97B | 4.04B | 3.59B |
| Common Stock | 205M | 200M | 195M | 195M | 188M | 189M | 179M | 174M | 166M | 163M |
| Retained Earnings | 716M | 662M | 1.04B | 911M | 865M | 1.07B | 881M | 745M | 827M | 658M |
| Treasury Stock | -79M | -61M | -33M | -24M | -7M | -12M | -15M | -19M | -7M | -22M |
| Accumulated OCI | 905M | 610M | 708M | 617M | 459M | 400M | 724M | 432M | 403M | 138M |
| Minority Interest | 4M | 8M | 9M | 10M | 9M | 10M | 13M | 14M | 15M | 16M |
Pearson plc (PSO) cash flow — operating, investing & free cash flow history
| Line item | Dec'16 | Dec'17 | Dec'18 | Dec'19 | Dec'20 | Dec'21 | Dec'22 | Dec'23 | Dec'24 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash from Operations | 410M | 298M | 462M | 369M | 389M | 326M | 361M | 525M | 627M | 627M |
| Operating CF Margin % | 9.01% | 6.6% | 11.19% | 9.54% | 11.45% | 9.51% | 9.4% | 14.29% | 17.65% | - |
| Operating CF Growth % | 94.31% | -27.32% | 55.03% | -20.13% | 5.42% | -16.2% | 10.74% | 45.43% | 19.43% | 457.87% |
| Net Income | -2.33B | 408M | 590M | 266M | 310M | 160M | 242M | 378M | 510M | 790M |
| Depreciation & Amortization | 2.91B | 313M | 253M | 389M | 317M | 408M | 572M | 543M | 526M | 1.05B |
| Stock-Based Compensation | 22M | 33M | 37M | 25M | 29M | 28M | 38M | 40M | 44M | 76.5M |
| Deferred Taxes | -464M | -614M | 34M | -181M | -282M | -280M | 0 | 0 | 0 | -389.5M |
| Other Non-Cash Items | 41M | -5M | -428M | -12M | 18M | 8M | -540M | -340M | -400M | -38M |
| Working Capital Changes | 234M | 163M | 10M | -118M | -3M | 2M | 49M | -96M | -53M | 76M |
| Change in Receivables | 156M | 133M | -15M | 59M | -1M | -71M | 33M | -24M | 32M | -9M |
| Change in Inventory | 17M | 24M | -10M | -20M | 35M | 22M | -34M | 9M | 15M | 32M |
| Change in Payables | 61M | 6M | 35M | -157M | 0 | 37M | 0 | -20M | 0 | 167M |
| Cash from Investing | -41M | 651M | 211M | -325M | 591M | -80M | 13M | -301M | -131M | -522M |
| Capital Expenditures | -245M | -232M | -200M | -193M | -134M | -176M | -57M | -30M | -33M | -410M |
| CapEx % of Revenue | 5.38% | 5.14% | 4.84% | 4.99% | 3.94% | 5.13% | 1.48% | 0.82% | 0.93% | - |
| Acquisitions | -65M | 419M | 96M | -186M | 625M | 18M | -228M | -214M | -46M | -63M |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 165M | 465M | 311M | 59M | 170M | 34M | 298M | -56M | -45M | -44M |
| Cash from Financing | -697M | -1.76B | -729M | -102M | -299M | -414M | -804M | -450M | -241M | -1.07B |
| Debt Issued (Net) | -248M | -1.29B | -441M | 91M | 24M | -167M | -264M | -84M | 344M | 588M |
| Equity Issued (Net) | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -4M |
| Dividends Paid | -424M | -318M | -136M | -147M | -146M | -149M | -156M | -154M | -156M | -314M |
| Share Repurchases | -27M | -149M | -153M | -52M | -182M | -16M | -390M | -221M | -358M | -784M |
| Other Financing | -5M | -5M | -5M | 6M | 5M | -88M | 6M | 9M | -78M | -573M |
| Net Change in Cash | -247M▲ 0% | -794M▼ 221.5% | -105M▲ 86.8% | -91M▲ 13.3% | 679M▲ 846.2% | -176M▼ 125.9% | -394M▼ 123.9% | -234M▲ 40.6% | 234M▲ 200.0% | 230M▲ 0% |
| Free Cash Flow | 165M▲ 0% | 66M▼ 60.0% | 262M▲ 297.0% | 176M▼ 32.8% | 255M▲ 44.9% | 150M▼ 41.2% | 304M▲ 102.7% | 399M▲ 31.3% | 503M▲ 26.1% | 1.14B▲ 0% |
| FCF Margin % | 3.62% | 1.46% | 6.35% | 4.55% | 7.51% | 4.38% | 7.91% | 10.86% | 14.16% | 16.13% |
| FCF Growth % | 558.33% | -60% | 296.97% | -32.82% | 44.89% | -41.18% | 102.67% | 31.25% | 26.07% | 100.35% |
| FCF per Share | 0.20 | 0.08 | 0.34 | 0.23 | 0.34 | 0.20 | 0.41 | 0.56 | 0.74 | 0.74 |
| FCF Conversion (FCF/Net Income) | -0.18x | 0.73x | 0.79x | 1.40x | 1.18x | 1.84x | 1.49x | 1.39x | 1.44x | 1.44x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 57M | 0 | 0 | 31M |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pearson plc (PSO) financial ratios — P/E, ROE, debt and 30+ core market and balance-sheet ratios
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Return on Equity (ROE) | -43.41% | 9.7% | 13.76% | 5.97% | 7.8% | 4.21% | 5.57% | 9% | 10.79% | 21.91% |
| Return on Invested Capital (ROIC) | -30.2% | 6.8% | 8.95% | 4.03% | 6.01% | 2.91% | 4.13% | 7.52% | 8.26% | 8.26% |
| Gross Margin | 54.02% | 54.22% | 52.94% | 51.98% | 47.98% | 49.04% | 46.73% | 49.95% | 50.99% | 51.01% |
| Net Margin | -51.34% | 9% | 14.24% | 6.82% | 9.71% | 5.16% | 6.3% | 10.29% | 12.22% | 11.18% |
| Debt / Equity | 0.57x | 0.27x | 0.16x | 0.39x | 0.40x | 0.33x | 0.28x | 0.29x | 0.36x | 0.36x |
| Interest Coverage | -42.32x | 5.71x | 6.08x | 3.27x | 5.20x | 2.69x | 3.93x | 8.16x | 6.85x | 5.19x |
| FCF Conversion | -0.18x | 0.73x | 0.79x | 1.40x | 1.18x | 1.84x | 1.49x | 1.39x | 1.44x | 1.44x |
| Revenue Growth | 1.88% | -0.86% | -8.51% | -6.3% | -12.2% | 0.91% | 12.05% | -4.35% | -3.32% | -6.38% |
Pearson plc (PSO) stock FAQ — growth, dividends, profitability & financials explained
Pearson plc (PSO) reported $7.07B in revenue for fiscal year 2024. This represents a 286% increase from $1.83B in 1995.
Pearson plc (PSO) saw revenue decline by 3.3% over the past year.
Yes, Pearson plc (PSO) is profitable, generating $790.0M in net income for fiscal year 2024 (12.2% net margin).
Yes, Pearson plc (PSO) pays a dividend with a yield of 2.04%. This makes it attractive for income-focused investors.
Pearson plc (PSO) has a return on equity (ROE) of 10.8%. This is reasonable for most industries.
Pearson plc (PSO) generated $1.14B in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
Pearson plc (PSO) financial analysis — history, returns, DCA and operating performance tools
Analyst verdict, bull/bear case, risk factors and peer comparison
Historical returns with dividends reinvested
Dollar cost averaging vs lump sum
Yield, growth, payout safety & DRIP
EPS trends, net income & profitability
Long-term charts & historical price data
Sales growth patterns & revenue breakdown
30 years of market, efficiency and balance-sheet ratios
DCF intrinsic value, peer multiples & estimates