Pearson plc PSON.L
Composite 60/100; the shares have moved about 23% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Growth ranks 43/100 — a slight mark against it.
Balance-sheet strength ranks 68/100 — a moderate point in its favour. Valuation ranks 63/100 — a moderate point in its favour. Quality ranks 62/100 — a slight point in its favour.
Growth ranks 43/100 — a slight mark against it.
What the company does Pearson plc delivers educational courseware, assessments, and services across K-12, higher education, English language learning, and professional qualifications globally. Its five segments include Assessment & Qualifications, Virtual Learning, and Higher Education, serving markets in the UK, US, Canada, and internationally.
Key financials Pearson reports gross margins of 52%, operating margins of 14%, and net margins of 9.4%. ROE is 8.7%, ROA 4.7%, and ROCE 21.3%. Revenue growth is 3.2%, while EPS declined -35.7%. Debt/Equity stands at 0.41 with a net debt/EBITDA of 1.96.
Stock health The stock shows strong momentum with 3m, 6m, and 12m gains of 22.83%, 39.75%, and 24.30%, respectively. RSI(14) is 68.30, indicating elevated but not extreme overbought conditions. The Piotroski F-Score is 8/9, and Altman Z is 3.72, reflecting financial resilience.
Price vs fair value The stock trades at a **PREMIUM of 20.50%** versus our fair-value estimate and a **PREMIUM of 7.70%** versus the analyst 12-month target. - Forward P/E of 21.69 (vs current 25.69) suggests valuation is stretched (Valuation 62.8). - Growth score of 33.2 lags peers, explaining part of the premium. - Momentum score of 74.1 and 12m return of 24.30% support the premium. - Dividend yield of 2.0% and payout of 48.1% signal income stability.
Looking forward Analysts expect forward P/E compression to 21.69, implying potential valuation relief if growth stabilizes. However, weak EPS growth (-35.7%) and elevated multiples suggest risk without execution improvement. Monitor segment profitability trends, especially in Higher Education and Virtual Learning.
This is not investment advice. Sideravia provides automated, data-driven analysis for information and education only. Nothing on this page is a personal recommendation or an invitation to buy or sell any security, and it does not consider your objectives or financial situation. Assessments are generated by rules applied uniformly to every covered stock — how our scores work.
Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.