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Pearson

US · PSO #1496 by market cap Listed 1970
16.42 +0.10 +0.61%
Live - 5344 symbols - heartbeat 195s ago · 2026-10-08 08:06
Pre-market 16.79 +2.25%
After-hours 16.42 0.00%
Overnight 16.38 -0.24%
Market cap
9.87B
P/B
2.23
EPS
0.67
Reader sentiment Are you bullish or bearish on PSO?

Anonymous reader poll. Unscientific, not investment advice.

✦ Quant Financial Health how this is computed

Good
  • Altman Z-Score is 3.33, above the 3.0 "safe zone" threshold.
  • Most reliable for industrial/manufacturing companies; less meaningful for banks, insurers and other financials.

Revenue annual, last 8 years

Latest year +0.70% YoY

Margins

Gross margin
52.00%
Operating margin
16.66%
Net margin
9.37%

Key ratios & quality

PEG uses trailing P/E against the 3-year net income growth rate (11.45%/yr) since forward earnings estimates aren't available here, so this is not a "forward PEG." Altman Z-Score below ~1.8 suggests financial distress risk, above ~3.0 suggests low risk; the model is most reliable for industrial/manufacturing companies and less meaningful for banks and other financial firms.

Income statement

Line item 2018 2019 2020 2021 2022 2023 2024 2025
Revenue 4.13B3.87B3.40B3.43B3.84B3.67B3.55B3.58B
Gross profit 2.19B2.01B1.63B1.68B1.80B1.84B1.81B1.86B
Selling & admin expenses 1.89B1.70B1.45B1.39B1.45B1.36B1.31B1.30B
Research & development ----------------
Operating profit 373.00M362.00M228.00M333.00M396.00M513.00M544.00M596.00M
Pretax profit 498.00M232.00M380.00M177.00M323.00M493.00M510.00M457.00M
Tax -92.00M-34.00M50.00M-1.00M79.00M113.00M75.00M121.00M
Net profit 590.00M266.00M330.00M178.00M244.00M380.00M435.00M336.00M
Basic EPS 10000111
Diluted EPS 0.760.340.440.230.330.530.640.51

Balance sheet

Line item 2018 2019 2020 2021 2022 2023 2024 2025
Total current assets 3.38B3.17B3.34B3.22B2.82B2.43B2.73B2.32B
Cash & ST investments 568.00M437.00M1.10B937.00M558.00M312.00M543.00M333.00M
Inventory 164.00M169.00M129.00M98.00M105.00M91.00M74.00M66.00M
Total assets 7.91B7.65B7.45B7.34B7.32B6.73B6.89B6.46B
Total current liabilities 2.13B1.49B1.65B1.58B1.48B1.40B1.48B1.16B
Short-term debt 46.00M92.00M254.00M155.00M86.00M67.00M315.00M62.00M
Long-term debt 672.00M823.00M787.00M680.00M610.00M611.00M705.00M1.00B
Total liabilities 3,380,000,000.003,327,000,000.003,317,000,000.003,063,000,000.002,909,000,000.002,739,000,000.002,839,000,000.002,795,000,000.00
Total equity 4.53B4.32B4.13B4.28B4.42B3.99B4.05B3.66B
Retained earnings 1.04B911.00M--1.07B881.00M745.00M827.00M629.00M

Cash flow

Line item 2018 2019 2020 2021 2022 2023 2024 2025
Operating cash flow 462.00M369.00M389.00M326.00M361.00M525.00M627.00M656.00M
Depreciation & amortization ----------------
Free cash flow 262.00M176.00M255.00M150.00M214.00M399.00M503.00M522.00M
Dividends paid -136.00M-147.00M-146.00M-149.00M-156.00M-154.00M-156.00M-160.00M
Stock buybacks / issuance -147.00M-45.00M-176.00M-10.00M-383.00M-212.00M-351.00M-415.00M
Ending cash balance 525.00M434.00M1.11B937.00M543.00M309.00M543.00M333.00M

Returns & efficiency

Line item 2018 2019 2020 2021 2022 2023 2024 2025
ROE % 13.795.987.353.795.589.0310.838.72
ROA % 7.453.394.112.153.305.386.375.02
ROIC % 11.585.116.093.534.317.188.546.75
5-year avg ROE % 0.28-0.14-1.238.307.486.537.507.67
EBIT margin % 13.087.7312.756.5610.2115.0816.5814.87
FCF / sales % 6.354.557.514.385.5710.8614.1614.59
Current ratio 1.582.132.032.041.911.731.852.00
Quick ratio 0.771.041.221.251.000.961.051.20
Debt / assets 9.1121.7522.1619.0716.7917.2621.3622.93
LT debt / equity 14.9236.4533.8729.1625.9927.5328.6538.90
Interest coverage 12.864.465.483.315.689.087.467.09
Revenue CAGR (3Y) % -2.60-5.27-9.03-6.01-0.242.651.19-2.35
Net income CAGR (3Y) % -10.60---6.68-32.98-2.864.6334.8511.45
FCF CAGR (3Y) % --2.1756.92-16.966.7316.0949.6834.61

✦ Quant Revenue Concentration how this is computed

Diversified
  • Assessment & Qualifications is the largest reported line at 44.84% of revenue, across 5 reported segments.
  • No single line clears half of revenue; Higher education is next at 21.67%, spreading the business across more than one real driver.

Revenue breakdown most recent period

Business

Assessment & Qualifications44.84%
Higher education21.67%
Virtual Learning14.29%
English Language Learning11.32%
Enterprise Learning & Skills7.88%

Region

US67.10%
UK14.26%
Asia Pacific9.90%
Other European Countries3.52%
Other countries3.33%
Canada1.90%

Quote time 2026-10-08 08:06:12 · For reference only, not investment advice and not tailored to your situation.