Financials Pearson plc

Equities

PSON

GB0006776081

Consumer Publishing

Market Closed - London S.E. 09:05:28 26/04/2024 pm IST 5-day change 1st Jan Change
987 GBX -0.46% Intraday chart for Pearson plc -0.62% +2.36%

Valuation

Fiscal Period: December 2019 2020 2021 2022 2023 2024 2025 2026
Capitalization 1 4,961 5,102 4,620 6,707 6,717 6,658 - -
Enterprise Value (EV) 1 5,977 5,656 5,117 7,264 5,973 7,267 7,179 7,229
P/E ratio 18.7 x 16.6 x 29.3 x 28.8 x 18.3 x 16.8 x 14.9 x 13.5 x
Yield 3.06% 2.87% 3.34% 2.29% 2.35% 2.43% 2.72% 2.96%
Capitalization / Revenue 1.28 x 1.5 x 1.35 x 1.75 x 1.83 x 1.81 x 1.73 x 1.66 x
EV / Revenue 1.54 x 1.66 x 1.49 x 1.89 x 1.63 x 1.97 x 1.86 x 1.8 x
EV / EBITDA 6.16 x 8.98 x 6.9 x 10.2 x 7.62 x 8.63 x 8.1 x 7.82 x
EV / FCF 34 x 22.2 x 19.5 x 33.9 x 15 x 16.2 x 14.8 x 13.8 x
FCF Yield 2.94% 4.51% 5.12% 2.95% 6.68% 6.17% 6.74% 7.25%
Price to Book 1.15 x 1.24 x 1.08 x 1.57 x 1.73 x 1.68 x 1.59 x 1.54 x
Nbr of stocks (in thousands) 7,78,873 7,49,842 7,53,360 7,14,131 6,96,669 6,74,591 - -
Reference price 2 6.370 6.804 6.132 9.392 9.642 9.870 9.870 9.870
Announcement Date 21/02/20 08/03/21 25/02/22 03/03/23 01/03/24 - - -
1GBP in Million2GBP
Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December 2019 2020 2021 2022 2023 2024 2025 2026
Net sales 1 3,869 3,397 3,428 3,841 3,674 3,685 3,856 4,009
EBITDA 1 970 630 742 715 784 842.5 886.1 924.5
EBIT 1 581 313 385 456 573 617.2 665 714.1
Operating Margin 15.02% 9.21% 11.23% 11.87% 15.6% 16.75% 17.25% 17.81%
Earnings before Tax (EBT) 1 232 354 157 323 493 546.8 605.2 688
Net income 1 264 310 160 242 378 395.1 436.2 472.9
Net margin 6.82% 9.13% 4.67% 6.3% 10.29% 10.72% 11.31% 11.8%
EPS 2 0.3400 0.4100 0.2090 0.3260 0.5270 0.5862 0.6603 0.7331
Free Cash Flow 1 176 255 262 214 399 448.7 483.7 524.3
FCF margin 4.55% 7.51% 7.64% 5.57% 10.86% 12.17% 12.54% 13.08%
FCF Conversion (EBITDA) 18.14% 40.48% 35.31% 29.93% 50.89% 53.25% 54.58% 56.71%
FCF Conversion (Net income) 66.67% 82.26% 163.75% 88.43% 105.56% 113.57% 110.88% 110.87%
Dividend per Share 2 0.1950 0.1950 0.2050 0.2150 0.2270 0.2402 0.2681 0.2924
Announcement Date 21/02/20 08/03/21 25/02/22 03/03/23 01/03/24 - - -
1GBP in Million2GBP
Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December 2019 S2 2020 S1 2021 S1 2021 S2 2022 S1 2022 S2 2023 S1 2023 S2 2024 S1 2024 S2
Net sales 1 2,040 1,492 1,597 1,831 1,788 2,053 1,879 1,795 1,770 1,905
EBITDA - - - - 202 - - - - -
EBIT - - 127 - 160 - - - - -
Operating Margin - - 7.95% - 8.95% - - - - -
Earnings before Tax (EBT) - - - - - - - - - -
Net income - - - - - - - - - -
Net margin - - - - - - - - - -
EPS - - - - - - - - - -
Dividend per Share - - - 0.1420 0.0660 - - - - -
Announcement Date 21/02/20 24/07/20 30/07/21 25/02/22 01/08/22 03/03/23 31/07/23 01/03/24 - -
1GBP in Million
Estimates

Balance Sheet Analysis

Fiscal Period: December 2019 2020 2021 2022 2023 2024 2025 2026
Net Debt 1 1,016 554 497 557 - 609 520 570
Net Cash position 1 - - - - 744 - - -
Leverage (Debt/EBITDA) 1.047 x 0.8794 x 0.6698 x 0.779 x - 0.7228 x 0.5874 x 0.617 x
Free Cash Flow 1 176 255 262 214 399 449 484 524
ROE (net income / shareholders' equity) 10.2% 7.35% 3.81% 5.58% 9.89% 10.5% 11% 11.7%
ROA (Net income/ Total Assets) 3.39% 4.11% 2.16% 3.3% 5.89% 5.84% 6.3% 7.29%
Assets 1 7,778 7,550 7,397 7,326 6,415 6,764 6,924 6,490
Book Value Per Share 2 5.540 5.480 5.650 5.960 5.590 5.880 6.210 6.390
Cash Flow per Share 2 0.4700 0.5100 0.4300 0.4900 0.7300 0.9300 1.030 -
Capex 1 193 134 176 147 126 167 168 179
Capex / Sales 4.99% 3.94% 5.13% 3.83% 3.43% 4.52% 4.37% 4.47%
Announcement Date 21/02/20 08/03/21 25/02/22 03/03/23 01/03/24 - - -
1GBP in Million2GBP
Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Trading Rating
Investor Rating
ESG Refinitiv
A
More Ratings
Sell
Consensus
Buy
Mean consensus
OUTPERFORM
Number of Analysts
11
Last Close Price
9.87 GBP
Average target price
11.33 GBP
Spread / Average Target
+14.81%
Consensus

Quarterly revenue - Rate of surprise

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