Pearson plc (PSO) Stock | PSO Stock Price & Analysis

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PSO

Pearson plc PSO · NYSE

$18.40 +1.35% (+$0.25)

Summary

65 / 100 · Bulios Score

Valuation 75Growth 50Profitability 80Quality 41Debt 80Stability 72

What speaks for it

The share price is below the Bulios Fair Price.
Earnings per share grew by 15% a year over the last 3 years.
Out of every 100 GBP of revenue, 18 GBP is left as free cash.
It bought back its own shares for £414.7M in the last fiscal year, 5.0% of its market value.

What to watch

Revenue fell by 3.1% a year over the last 3 years.
It missed profit estimates 6 times in the last 8 quarters.

Bulios Scoring describes a company's quality and track record, not its future return. A high score is not a buy signal. Learn more

Score in detail

Is it expensive?

Looks cheap

Bulios Fair Price

Current price $18.4

P/E today 25.1 9.1% higher

5-year average P/E 23.0

P/E today 25.1

Publishing industry median

Unlock fair price

Bulios Fair Price is an estimate of a stock's fair value from the Bulios valuation model. It is an input for your own analysis, not investment advice. How does it work?

Today you pay 25.1 GBP for 1 GBP of yearly profit. Over the last five years it was 23.0 GBP on average.

Valuation in detail

Is it growing?

Slowly

Revenue (GBP)

3.4B

3.8B

3.7B

3.6B

3.5B

3.7B

3.9B

2021202220232024202520262027

Diluted EPS (GBP)

£0.23

£0.33

£0.53

£0.63

£0.50

£0.71

£0.79

2021202220232024202520262027

Analyst estimate

Revenue grew by 0.6% a year over 5 years. Over the last 3 years it fell by 3.1% a year. For the next fiscal year analysts expect revenue to grow by 6.5%. Earnings per share grew by 15% a year over the last 3 years.

Growth in detail

Does it make money?

Very well

Where 100 GBP of revenue goes

Cost of sales 48 GBP
Sales and administration 38 GBP
Taxes and other 5.8 GBP
Net profit 8.8 GBP

Net profit, industry median (Publishing) 9.4 GBP

Out of every 100 GBP of revenue, 8.8 GBP is left as net profit.

Profitability in detail

Is it financially healthy?

Yes

Cash and short-term investments £337.0M

Debt £1.75B

Free cash flow over 12 months £776.6M

Repaying all its debt would take 2.2 years of free cash flow. Its debt is larger than its cash.

Financial health in detail

Does it pay a dividend?

Small, safe

0.28

0.27

0.29

0.33

20212022202320242025

Yield: 1.90%
Paid out of profit: 48%
Raised in a row: 2 years

You receive $0.35 per share a year. The company covers the payout with ease.

Dividends in detail

What do analysts expect?

Neutral

Buy 2
Hold 13
Sell 0

Today's price within the analysts' price targets

Today's price $18.4 Average target $14.5

$11 $18.4

The average target of $14.5 is 21% below today's price. 13% of the analysts recommend buying.

Analysts in detail

What does it earn on?

Fiscal year 2020

By product

The company reports no revenue by product.

By region

UNITED STATES 87%
Asia Pacific 9.4%
CANADA 3.4%

UNITED STATES brings in 87% of revenue.

Segments in detail