Pearson (PSO) Fundamental Analysis: Revenue, Earnings & Valuation

6.67 / 10

Outperform

Fundamental analysis rates Pearson as Outperform, scoring 6.67/10. Strengths include solid Asset‑MV, strong YoY cash‑flow growth (9.64%), and healthy cash‑flow‑to‑liabilities ratio. Weaknesses are a negative Profit‑MV, low equity multiplier, and moderate long‑term debt to working‑capital. Overall fundamentals are satisfactory.

Analysis Checks(6/10)

Net cash flow from operating activities per share (YoY growth rate %)

Value9.64

Score3/3

Weight29.01%

1M Return9.24%

Equity multiplier

Value1.77

Score0/3

Weight-3.47%

1M Return-1.35%

Current liabilities / Total liabilities (%)

Value41.54

Score2/3

Weight9.16%

1M Return2.91%

Profit-MV

Value0.57

Score0/3

Weight-10.75%

1M Return-4.50%

Non-current liabilities / Total liabilities (%)

Value58.46

Score2/3

Weight15.21%

1M Return4.57%

Total profit / EBIT (%)

Value90.14

Score1/3

Weight3.05%

1M Return1.08%

Net cash flow from operating activities / Total liabilities (%)

Value0.23

Score3/3

Weight26.19%

1M Return9.69%

Long-term debt to working capital ratio (%)

Value1.41

Score1/3

Weight1.83%

1M Return0.65%

Asset-MV

Value-0.55

Score2/3

Weight24.36%

1M Return6.42%

Net profit / Total profit (%)

Value73.52

Score2/3

Weight5.42%

1M Return1.72%

Is PSO undervalued or overvalued?

PSO scores 6.67/10 on fundamentals and holds a Discounted valuation at present. Backed by its 8.68% ROE, 9.39% net margin, 17.71 P/E ratio, 1.62 P/B ratio, and -14.42% earnings growth, these metrics solidify its Outperform investment rating.