QualityDipStocks / Consumer Discretionary · Books
Pearson Plc PSO
Outside our quality screen, so we don’t track its dips. It’s 6% below its 52-week high.
Outside our quality screen. No fair value estimate for now: there isn’t enough data.
Worth knowing
- Share count down 8% in 2 years
From the data on this page, as of the last close. How we pick these
- Fair value est.
- n/a
- Market Value
- —
- Off 52-wk high
- −6%
- Risk vs market
- Lowbeta 0.32
4 bullish · 5 bearish See why
Valuation
What we estimate it's worth, and how it ranks on value vs every stock we cover.
Fair value estimate
No estimate for PSO: Capital spending isn't tagged for the latest period in SEC XBRL data. We’d rather show nothing than a made-up number.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 31 to Nov 2, 252 sessions). Beta = how much PSO moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves much less than the market, but its own price swings are 2.0× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.32
- Volatility
- 25% vs 13% SPY
- Correlation SPY
- 0.16
- Correlation QQQ
- 0.02
How it ranks
Where PSO stands vs every one of the 1,996 stocks we cover that has the number. Longer bar = better.
Not in the top quarter on any of these 4 measures
- Dividends + buybacks yield2.1% · cash paid out or used to retire shares, vs market capLowest 41%of 1,836
- Revenue growth, last 12 months+0.7% · vs the 12 months beforeLowest 15%of 1,814
- Operating margin14% · of sales kept as operating profitTop 43%of 1,288
- Return on invested capital11% · profit per dollar of capitalTop 47%of 838
From SEC filings and our fair value estimate model. A ranking, not advice.
Valuation details
Fundamentals
The business itself: sales, profits, cash and debt, from SEC filings.
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 4 of 5
Balance sheetNet cash of $364M: cash and short-term investments exceed debt (Dec 31, 2025).
Balance sheetDebt / equity of 0.0×, below the 0.8× median for the 250 Consumer Discretionary companies we cover.
Cash returnsDividend yield of 2.1% ($215M paid over 12 months, 48% of earnings).
ProfitabilityGross margin of 52%, above the 37% median for the 254 Consumer Discretionary companies we cover.
Top bearish points 5 of 5
GrowthSales shrank 2% a year from FY2022 to FY2025.
GrowthSales grew 0.7% over the last 12 months, below the 6.7% median for the 376 Consumer Discretionary companies we cover.
GrowthDiluted EPS fell 20% in the last fiscal year, below the 4.2% median for the 293 Consumer Discretionary companies we cover.
ProfitabilityReturn on equity of 8.7%, below the 16% median for the 332 Consumer Discretionary companies we cover.
QualityDoesn’t pass our quality screen: ROE under 12% and ROIC under 10%.
All fundamentals
P/E 23.1 · ROE 9% · Sales +1%
Valuation
- P/E
- 23.1×Consumer Discretionary median 20.7×
- Price / FCF
- n/anot reported in its SEC filings
- FCF yield
- n/anot reported in its SEC filings
- EV / EBITDA
- 13.6×
- Price / sales
- 2.17×
- Price / book
- 2.12×
- Market cap
- $10.4Blisted
- Enterprise value
- $10.0B
Growth
- Revenue, 12 months
- $4.8B
- Sales growth, 12 months
- +0.7%vs the 12 months before
- Sales growth, 3 yrs
- −2.3%/yrfrom FY2022
- Diluted EPS, 12 months
- $0.51
- EPS growth, last FY
- −20.2%
- Net income, 12 months
- $450M
- Net income growth
- −23%12 months vs before
Profitability
- Gross margin
- 52.0%
- Operating margin
- 14.2%
- Net margin
- 9.4%
- FCF margin
- n/anot reported in its SEC filings
- Return on equity
- 9%
- Return on invested capital
- 11%
Balance sheet
- Cash & short-term inv.
- $447M
- Total debt
- $83M
- Net cash
- $364M
- Debt / equity
- 0.02×
- Interest coverage
- 5.2×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- n/anot reported in its SEC filings
- FCF growth, 12 months
- n/anot reported in its SEC filings
- Dividend yield
- 2.07%$215M paid
- Payout ratio
- 48%
- Buybacks, 12 months
- n/anot reported in its SEC filings
- Share count, 1 year
- n/ano quarterly diluted share count
- Stock-based comp
- n/anot reported in its SEC filings
Trailing 12 months to Dec 31, 2025; balance sheet at Dec 31, 2025. From Pearson Plc’s SEC filings, reported in GBP and converted to US dollars. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
The business
Sales +3%
- Gross margin52%
- Operating margin13%
- Return on invested capital7%
- Return on equity9%
- Sales growth (latest quarter vs year-ago quarter)+3%
- Net debt / EBITDA2.4×
Chart & levels
Where the price is vs its key levels and trends.
Key levels
Every level vs today’s $17.31
- 52-wk lowlowest close, 1 year$12.06−30.3%
- PriceMon Nov 2 close$17.31you are here
- 52-wk highhighest close, 1 year$18.39+6.2%
Momentum & 52-week range
RSI 50 · 5 days −5.4%
Signals
Reversal signal setups, the public ledger and the next earnings date.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
PSO is outside our quality screen
One text when a published rule fires on one of the 332 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.
Voices & buzz
Who is talking about it, and how it compares with peers.
Who’s talking about it
Notable investors, executives, analysts and public figures on Pearson Plc in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 3, 1:01 PM ET.
Compare with peers
Closest in size in Consumer Discretionary
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.