PSO Communication Services

Pearson plc

$17.13-1.04%

Price as of close on Nov 3, 2026 · Financials updated Oct 1, 2026

Basics

Sector: Communication Services
Industry: Publishing
Country: United Kingdom
Market cap: 10.3B USD
Enterprise value: 13.1B USD
Full-time employees: 13,665

Overall health

Strength: more profitable than most peersmore profitable than peers
Drawback: growing more slowly than most peersgrowing more slowly than peers
About average: valuation and risk (debt, liquidity and share-price swings)valuation and risk

Ranks #231 of 454 communication services companies (bottom 50%)

See how it ranks against its peers

Worth knowing

Share count shrinking. Shares outstanding down 11% from December 2022 to December 2025.
Pearson had 11% fewer shares at December 2025 than at December 2022, mainly through buybacks, so each remaining share owns a larger slice of the business.
Financials may be out of date. Latest financial period ended 10 months ago.
The latest financial period we have ended 10 months ago, so the scores may not reflect recent results.

StockQuotient Score

50/ 100

Oct 5 50 → Nov 4 50

Valuation

Is the price right?

44/100

Moderate▲ 1 since Oct 27 close

2/3 inputs reported · Partial data

Since last year: No major changeValuation also moves with the share price every day.

Why it changed since the Oct 27, 2026 close: Score 43 → 44

Peer companies moved+1

Each step re-scores the company against its peers as they were on Oct 28, 2026; the parts add up to the change. Price effects on EBITDA yield are approximate.

Why

Close to the peer norm on every measure.

Compare with peers

Behind the score

Sector-normalized EBITDA, earnings, and free cash flow yields.

Earnings yield4.1%

SEC filings (IFRS mapped) · 12 months to Dec 2025 · GBP→USD at the current rateReported value30% base weight · Z-score 0.39Sector median: 0.0294 · MAD: 0.0294

EBITDA yield6.6%

Yahoo Finance fallback · SEC enterprise value unavailable (debt or EBITDA not reported in standard form) · trailing 12 months · GBP→USD convertedReported value50% base weight · Z-score -0.31Sector median: 0.0857 · MAD: 0.0649

Free cash flow yieldUnavailable

Missing · left out of the score · no sector data, so not countedNot counted · remaining weights rescaledSector median: 0.0740 · MAD: 0.0593

Other data (not scored)

Book yield44.7%

SEC filings (IFRS mapped) · latest balance sheet · GBP→USD at the current rateReported valueInformational · 0% composite weightSector median: 0.4780 · MAD: 0.3375

Growth

Is it growing?

27/100

Weak

3/3 inputs reported · High confidence

Since last year: No major change

Why

Weaker than most peers on:

▼ 3-yr revenue
▼ EPS growth
▼ Revenue growth

Compare with peers

Behind the score

Revenue and earnings-per-share growth over one year, and revenue growth over three years.

Earnings per share growth-19.1%

SEC filings (IFRS mapped) · 12 months to Dec 2025Reported value33% base weight · Z-score -0.89Sector median: 0.0878 · MAD: 0.3126

3-year revenue growth-2.3%

SEC filings (IFRS mapped) · 3 years to Dec 2025Reported value33% base weight · Z-score -0.79Sector median: 0.0303 · MAD: 0.0683

Revenue growth0.7%

SEC filings (IFRS mapped) · 12 months to Dec 2025Reported value33% base weight · Z-score -0.32Sector median: 0.0299 · MAD: 0.0720

Profitability

Does it earn well?

63/100

Moderate

3/3 inputs reported · High confidence

Since last year: No major change

Why

Stronger than most peers on:

▲ ROA
▲ Operating margin

Compare with peers

Behind the score

Return on invested capital, operating margin, and return on assets.

Operating margin14.2%

SEC filings (IFRS mapped) · 12 months to Dec 2025Reported value33% base weight · Z-score 0.76Sector median: 0.0818 · MAD: 0.0789

Return on assets5.2%

SEC filings (IFRS mapped) · 12 months to Dec 2025Reported value33% base weight · Z-score 0.78Sector median: 0.0272 · MAD: 0.0318

Return on invested capital8.4%

SEC filings (IFRS mapped) · 12 months to Dec 2025Reported value33% base weight · Z-score 0.34Sector median: 0.0598 · MAD: 0.0706

Other data (not scored)

Gross margin52.0%

SEC filings (IFRS mapped) · 12 months to Dec 2025Reported valueInformational · 0% composite weightSector median: 0.4656 · MAD: 0.1827

Return on equity9.2%

SEC filings (IFRS mapped) · 12 months to Dec 2025Reported valueInformational · 0% composite weightSector median: 0.0529 · MAD: 0.1007

Risk

Debt, liquidity, price swings

Moderate

Moderate relative risk

2/3 inputs reported · Partial data

Since last year: No major change

Why

Helped by:

▲ Current ratio

Compare with peers

Behind the score

Relative to sector peers: 0 = lower relative risk · 1 = moderate · 2 = higher. Based on leverage, beta and liquidity.

BetaUnavailable

Missing · left out of the score · no sector data, so not countedNot counted · remaining weights rescaledSector median: 0.6525 · MAD: 0.2880

Current ratio2.00×

Yahoo Finance fallback · SEC figure unavailable or out of dateReported value33% base weight · Z-score 0.89Sector median: 1.3848 · MAD: 0.6948

Debt / equity0.41×

SEC filings (IFRS mapped) · latest balance sheetReported value33% base weight · Z-score -0.11Sector median: 0.3697 · MAD: 0.3335

Valuation, growth and profitability scores: higher is better. Risk: 0 is lower, 2 is higher. Risk is a relative proxy, not a bankruptcy probability. Scores depend on available sector peers.

Questions investors ask about Pearson

Is Pearson getting weaker?: Its latest SEC filing (Mar 13, 2026) showed no major changes. Its overall score is unchanged at 50/100 since Oct 28, 2026.
How is Pearson valued vs its peers?: Priced about in line with its peers. Valuation scores 44/100 against 512 communication services peers.
Is Pearson growing?: More slowly than most of its peers. Growth scores 27/100 against 512 communication services peers. 3-year revenue growth -2.3% vs a peer median of 3.0% (weaker than 74% of peers).3-year revenue growth -2.3% vs peers 3.0% (weaker than 74% of peers).
How profitable is Pearson?: More profitable than most of its peers. Profitability scores 63/100 against 512 communication services peers. Return on assets 5.2% vs a peer median of 2.7% (stronger than 70% of peers).Return on assets 5.2% vs peers 2.7% (stronger than 70% of peers).
How risky is Pearson?: Moderate risk relative to 512 communication services peers, judged on debt, liquidity and share-price swings. Current ratio 2.00× vs a peer median of 1.38× (stronger than 67% of peers).Current ratio 2.00× vs peers 1.38× (stronger than 67% of peers). A relative measure, not a bankruptcy probability.

Latest filing: what changed

Year ended Dec 31, 2025 · filed Mar 13, 2026 · compared with the year ended Dec 31, 2024

No major changes

	Previous year	Latest year	Change
Revenue (12 months)	3.6B GBP	3.6B GBP	+0.7%
Net income (12 months)	434.0M GBP	335.0M GBP	−22.8%
Operating margin	15.2%	14.2%	−1.1 pts
Debt	1.5B GBP	1.5B GBP	+0.6%
Cash	543.0M GBP	333.0M GBP	−38.7%

From the company’s own SEC filings, as filed. Twelve-month figures roll forward one year at a time.

Financials

Fiscal years from SEC annual filings · change vs the prior year · amounts in GBP, as reported

Key ratios	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025	Change
Gross margin	49.0%	46.7%	49.9%	51.0%	52.0%	▲ 1.0 pts
Operating margin	5.3%	7.1%	13.6%	15.2%	14.2%	▼ 1.1 pts
Net margin	5.2%	6.3%	10.3%	12.2%	9.4%	▼ 2.9 pts
Return on assets (ROA)	2.4%	3.3%	5.6%	6.3%	5.2%	▼ 1.1 pts
Return on equity (ROE)	4.1%	5.5%	9.5%	10.7%	9.2%	▼ 1.6 pts
Free cash flow margin	7.6%	—	—	—	—	—
Debt to equity	0.33×	0.28×	0.29×	0.36×	0.41×	▲ 11%
Interest coverage	2.69×	3.82×	6.15×	4.83×	5.17×	▲ 7.1%

PSO price history

Price history is added with the daily price update and will appear after the next one.

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Bringing the fundamentals into focus…

Overall health

Strength: more profitable than most peersmore profitable than peers

Drawback: growing more slowly than most peersgrowing more slowly than peers

About average: valuation and risk (debt, liquidity and share-price swings)valuation and risk

Ranks #231 of 454 communication services companies (bottom 50%)

See how it ranks against its peers

Worth knowing

Share count shrinking. Shares outstanding down 11% from December 2022 to December 2025.

Pearson had 11% fewer shares at December 2025 than at December 2022, mainly through buybacks, so each remaining share owns a larger slice of the business.

Financials may be out of date. Latest financial period ended 10 months ago.

The latest financial period we have ended 10 months ago, so the scores may not reflect recent results.

Questions investors ask about Pearson

Is Pearson getting weaker?

Its latest SEC filing (Mar 13, 2026) showed no major changes. Its overall score is unchanged at 50/100 since Oct 28, 2026.

How is Pearson valued vs its peers?

Priced about in line with its peers. Valuation scores 44/100 against 512 communication services peers.

Is Pearson growing?

More slowly than most of its peers. Growth scores 27/100 against 512 communication services peers. 3-year revenue growth -2.3% vs a peer median of 3.0% (weaker than 74% of peers).3-year revenue growth -2.3% vs peers 3.0% (weaker than 74% of peers).

How profitable is Pearson?

More profitable than most of its peers. Profitability scores 63/100 against 512 communication services peers. Return on assets 5.2% vs a peer median of 2.7% (stronger than 70% of peers).Return on assets 5.2% vs peers 2.7% (stronger than 70% of peers).

How risky is Pearson?

Moderate risk relative to 512 communication services peers, judged on debt, liquidity and share-price swings. Current ratio 2.00× vs a peer median of 1.38× (stronger than 67% of peers).Current ratio 2.00× vs peers 1.38× (stronger than 67% of peers). A relative measure, not a bankruptcy probability.

Previous year

Latest year

Change

Revenue (12 months)

3.6B GBP

3.6B GBP

+0.7%

Net income (12 months)

434.0M GBP

335.0M GBP

−22.8%

Operating margin

15.2%

14.2%

−1.1 pts

Debt

1.5B GBP

1.5B GBP

+0.6%

Cash

543.0M GBP

333.0M GBP

−38.7%

Key ratios

FY 2021

FY 2022

FY 2023

FY 2024

FY 2025

Change

Gross margin

49.0%

46.7%

49.9%

51.0%

52.0%

▲ 1.0 pts

Operating margin

5.3%

7.1%

13.6%

15.2%

14.2%

▼ 1.1 pts

Net margin

5.2%

6.3%

10.3%

12.2%

9.4%

▼ 2.9 pts

Return on assets (ROA)

2.4%

3.3%

5.6%

6.3%

5.2%

▼ 1.1 pts

Return on equity (ROE)

4.1%

5.5%

9.5%

10.7%

9.2%

▼ 1.6 pts

Free cash flow margin

7.6%

—

Debt to equity

0.33×

0.28×

0.29×

0.36×

0.41×

▲ 11%

Interest coverage

2.69×

3.82×

6.15×

4.83×

5.17×

▲ 7.1%