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Also traded in: Germany, UK, USA

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash-to-Debt 0.30
PSO's Cash-to-Debt is ranked lower than
64% of the 198 Companies
in the Global Publishing industry.

( Industry Median: 1.36 vs. PSO: 0.30 )
Ranked among companies with meaningful Cash-to-Debt only.
PSO' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.11  Med: 0.28 Max: 0.76
Current: 0.3
0.11
0.76
Equity-to-Asset 0.54
PSO's Equity-to-Asset is ranked lower than
51% of the 191 Companies
in the Global Publishing industry.

( Industry Median: 0.55 vs. PSO: 0.54 )
Ranked among companies with meaningful Equity-to-Asset only.
PSO' s Equity-to-Asset Range Over the Past 10 Years
Min: 0.28  Med: 0.48 Max: 0.55
Current: 0.54
0.28
0.55
Debt-to-Equity 0.27
PSO's Debt-to-Equity is ranked higher than
60% of the 131 Companies
in the Global Publishing industry.

( Industry Median: 0.33 vs. PSO: 0.27 )
Ranked among companies with meaningful Debt-to-Equity only.
PSO' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.27  Med: 0.55 Max: 3.78
Current: 0.27
0.27
3.78
Debt-to-EBITDA 1.08
PSO's Debt-to-EBITDA is ranked higher than
61% of the 128 Companies
in the Global Publishing industry.

( Industry Median: 2.01 vs. PSO: 1.08 )
Ranked among companies with meaningful Debt-to-EBITDA only.
PSO' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -10.45  Med: 2.43 Max: 5.75
Current: 1.08
-10.45
5.75
Interest Coverage 5.78
PSO's Interest Coverage is ranked lower than
81% of the 156 Companies
in the Global Publishing industry.

( Industry Median: 23.58 vs. PSO: 5.78 )
Ranked among companies with meaningful Interest Coverage only.
PSO' s Interest Coverage Range Over the Past 10 Years
Min: 3.39  Med: 5.7 Max: 8.01
Current: 5.78
3.39
8.01
Piotroski F-Score: 7
Altman Z-Score: 2.09
Beneish M-Score: -2.55
WACC vs ROIC
4.94%
11.95%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry
vs
history
Operating Margin % 14.27
PSO's Operating Margin % is ranked higher than
69% of the 195 Companies
in the Global Publishing industry.

( Industry Median: 5.19 vs. PSO: 14.27 )
Ranked among companies with meaningful Operating Margin % only.
PSO' s Operating Margin % Range Over the Past 10 Years
Min: 6.22  Med: 10.32 Max: 14.27
Current: 14.27
6.22
14.27
Net Margin % 14.11
PSO's Net Margin % is ranked higher than
72% of the 194 Companies
in the Global Publishing industry.

( Industry Median: 3.25 vs. PSO: 14.11 )
Ranked among companies with meaningful Net Margin % only.
PSO' s Net Margin % Range Over the Past 10 Years
Min: -51.34  Med: 9.69 Max: 22.9
Current: 14.11
-51.34
22.9
ROE % 15.20
PSO's ROE % is ranked higher than
67% of the 191 Companies
in the Global Publishing industry.

( Industry Median: 4.80 vs. PSO: 15.20 )
Ranked among companies with meaningful ROE % only.
PSO' s ROE % Range Over the Past 10 Years
Min: -43.45  Med: 9.4 Max: 26.25
Current: 15.2
-43.45
26.25
ROA % 7.52
PSO's ROA % is ranked higher than
62% of the 200 Companies
in the Global Publishing industry.

( Industry Median: 3.00 vs. PSO: 7.52 )
Ranked among companies with meaningful ROA % only.
PSO' s ROA % Range Over the Past 10 Years
Min: -21.54  Med: 4.46 Max: 12.92
Current: 7.52
-21.54
12.92
ROC (Joel Greenblatt) % 74.45
PSO's ROC (Joel Greenblatt) % is ranked higher than
73% of the 198 Companies
in the Global Publishing industry.

( Industry Median: 16.87 vs. PSO: 74.45 )
Ranked among companies with meaningful ROC (Joel Greenblatt) % only.
PSO' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -231.84  Med: 47.93 Max: 126.67
Current: 74.45
-231.84
126.67
3-Year Revenue Growth Rate -0.30
PSO's 3-Year Revenue Growth Rate is ranked higher than
53% of the 179 Companies
in the Global Publishing industry.

( Industry Median: -1.30 vs. PSO: -0.30 )
Ranked among companies with meaningful 3-Year Revenue Growth Rate only.
PSO' s 3-Year Revenue Growth Rate Range Over the Past 10 Years
Min: -6.3  Med: 3.3 Max: 15
Current: -0.3
-6.3
15
3-Year EBITDA Growth Rate 21.20
PSO's 3-Year EBITDA Growth Rate is ranked higher than
54% of the 145 Companies
in the Global Publishing industry.

( Industry Median: 3.70 vs. PSO: 21.20 )
Ranked among companies with meaningful 3-Year EBITDA Growth Rate only.
PSO' s 3-Year EBITDA Growth Rate Range Over the Past 10 Years
Min: 0  Med: 3 Max: 58.9
Current: 21.2
0
58.9
3-Year EPS without NRI Growth Rate 26.60
PSO's 3-Year EPS without NRI Growth Rate is ranked higher than
81% of the 134 Companies
in the Global Publishing industry.

( Industry Median: 4.40 vs. PSO: 26.60 )
Ranked among companies with meaningful 3-Year EPS without NRI Growth Rate only.
PSO' s 3-Year EPS without NRI Growth Rate Range Over the Past 10 Years
Min: 0  Med: 0.4 Max: 63.8
Current: 26.6
0
63.8
GuruFocus has detected 5 Warning Signs with Pearson PLC PSO.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
» PSO's 30-Y Financials

Financials (Next Earnings Date: 2019-02-23 Est.)


Revenue & Net Income
Cash & Debt
Operating Cash Flow & Free Cash Flow
Operating Cash Flow & Net Income

» Details

Guru Trades

Q3 2017

PSO Guru Trades in Q3 2017

David Dreman 428 sh (unchged)
Jim Simons 926,400 sh (-10.34%)
» More
Q4 2017

PSO Guru Trades in Q4 2017

David Dreman 428 sh (unchged)
Jim Simons 864,400 sh (-6.69%)
» More
Q1 2018

PSO Guru Trades in Q1 2018

David Dreman 428 sh (unchged)
Jim Simons 825,600 sh (-4.49%)
» More
Q2 2018

PSO Guru Trades in Q2 2018

Steven Cohen 1,854 sh (New)
Jim Simons 643,500 sh (-22.06%)
» More
» Details

Insider Trades

Latest Guru Trades with PSO

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

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Business Description

Industry: Publishing » Publishing    NAICS: 515120 
Compare:XTER:SPR, LSE:INF, OSL:SCHB, NYSE:JW.A, XPAR:MMB, NYSE:NYT, SHSE:601098, HKSE:708, SGX:T39, SHSE:601019, LSE:DMGT, SHSE:600373, XAMS:WKL, SHSE:601928, SHSE:600633, SAU:4210, NYSE:MDP, LSE:ERM, OHEL:SAA1V, SHSE:601949 » details
Traded in other countries:PESA.Germany, PSON.UK, PSORF.USA,
Headquarter Location:UK
Pearson PLC is a content publisher. Its products comprise of educational courseware, assessments and services, and consumer publishing.

U.K.-listed Pearson is the world's largest educational provider. The company has been disposing of noncore businesses such as the Financial Times, The Economist, and publishing house Penguin (in which it retains a 25% stake), and is now focused on being an educational resource provider. While Pearson's primary activity centres on K-12 and higher-level education, the firm also has significant operations in providing clinical assessments, professional certification, testing, and English language courses.

Ratios

vs
industry
vs
history
PE Ratio 11.55
PSO's PE Ratio is ranked higher than
61% of the 137 Companies
in the Global Publishing industry.

( Industry Median: 18.28 vs. PSO: 11.55 )
Ranked among companies with meaningful PE Ratio only.
PSO' s PE Ratio Range Over the Past 10 Years
Min: 6.16  Med: 17.22 Max: 35.34
Current: 11.55
6.16
35.34
Forward PE Ratio 14.58
PSO's Forward PE Ratio is ranked lower than
56% of the 25 Companies
in the Global Publishing industry.

( Industry Median: 14.27 vs. PSO: 14.58 )
Ranked among companies with meaningful Forward PE Ratio only.
N/A
PE Ratio without NRI 11.55
PSO's PE Ratio without NRI is ranked higher than
61% of the 137 Companies
in the Global Publishing industry.

( Industry Median: 18.28 vs. PSO: 11.55 )
Ranked among companies with meaningful PE Ratio without NRI only.
PSO' s PE Ratio without NRI Range Over the Past 10 Years
Min: 10.33  Med: 17.95 Max: 60.65
Current: 11.55
10.33
60.65
Price-to-Owner-Earnings 10.53
PSO's Price-to-Owner-Earnings is ranked higher than
55% of the 92 Companies
in the Global Publishing industry.

( Industry Median: 15.20 vs. PSO: 10.53 )
Ranked among companies with meaningful Price-to-Owner-Earnings only.
PSO' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 5.73  Med: 11.85 Max: 30.7
Current: 10.53
5.73
30.7
PB Ratio 1.68
PSO's PB Ratio is ranked lower than
53% of the 186 Companies
in the Global Publishing industry.

( Industry Median: 1.40 vs. PSO: 1.68 )
Ranked among companies with meaningful PB Ratio only.
PSO' s PB Ratio Range Over the Past 10 Years
Min: 0.88  Med: 1.59 Max: 2.05
Current: 1.68
0.88
2.05
PS Ratio 1.58
PSO's PS Ratio is ranked lower than
57% of the 193 Companies
in the Global Publishing industry.

( Industry Median: 1.07 vs. PSO: 1.58 )
Ranked among companies with meaningful PS Ratio only.
PSO' s PS Ratio Range Over the Past 10 Years
Min: 0.96  Med: 1.55 Max: 2.67
Current: 1.58
0.96
2.67
Price-to-Free-Cash-Flow 108.38
PSO's Price-to-Free-Cash-Flow is ranked lower than
89% of the 76 Companies
in the Global Publishing industry.

( Industry Median: 13.21 vs. PSO: 108.38 )
Ranked among companies with meaningful Price-to-Free-Cash-Flow only.
PSO' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 7.75  Med: 15.43 Max: 118.15
Current: 108.38
7.75
118.15
Price-to-Operating-Cash-Flow 23.98
PSO's Price-to-Operating-Cash-Flow is ranked lower than
85% of the 97 Companies
in the Global Publishing industry.

( Industry Median: 8.59 vs. PSO: 23.98 )
Ranked among companies with meaningful Price-to-Operating-Cash-Flow only.
PSO' s Price-to-Operating-Cash-Flow Range Over the Past 10 Years
Min: 6.46  Med: 12.34 Max: 37.64
Current: 23.98
6.46
37.64
EV-to-EBIT 9.98
PSO's EV-to-EBIT is ranked higher than
59% of the 147 Companies
in the Global Publishing industry.

( Industry Median: 14.27 vs. PSO: 9.98 )
Ranked among companies with meaningful EV-to-EBIT only.
PSO' s EV-to-EBIT Range Over the Past 10 Years
Min: -22.9  Med: 12.15 Max: 41.1
Current: 9.98
-22.9
41.1
EV-to-EBITDA 7.24
PSO's EV-to-EBITDA is ranked higher than
61% of the 162 Companies
in the Global Publishing industry.

( Industry Median: 10.29 vs. PSO: 7.24 )
Ranked among companies with meaningful EV-to-EBITDA only.
PSO' s EV-to-EBITDA Range Over the Past 10 Years
Min: -38.3  Med: 9.6 Max: 29.2
Current: 7.24
-38.3
29.2
EV-to-Revenue 1.71
PSO's EV-to-Revenue is ranked lower than
60% of the 193 Companies
in the Global Publishing industry.

( Industry Median: 1.00 vs. PSO: 1.71 )
Ranked among companies with meaningful EV-to-Revenue only.
PSO' s EV-to-Revenue Range Over the Past 10 Years
Min: 1.2  Med: 1.7 Max: 3
Current: 1.71
1.2
3
Shiller PE Ratio 19.42
PSO's Shiller PE Ratio is ranked higher than
56% of the 54 Companies
in the Global Publishing industry.

( Industry Median: 17.87 vs. PSO: 19.42 )
Ranked among companies with meaningful Shiller PE Ratio only.
PSO' s Shiller PE Ratio Range Over the Past 10 Years
Min: 8.96  Med: 18.48 Max: 35.03
Current: 19.42
8.96
35.03
Current Ratio 1.46
PSO's Current Ratio is ranked higher than
51% of the 182 Companies
in the Global Publishing industry.

( Industry Median: 1.53 vs. PSO: 1.46 )
Ranked among companies with meaningful Current Ratio only.
PSO' s Current Ratio Range Over the Past 10 Years
Min: 1.13  Med: 1.65 Max: 2.61
Current: 1.46
1.13
2.61
Quick Ratio 1.38
PSO's Quick Ratio is ranked higher than
58% of the 182 Companies
in the Global Publishing industry.

( Industry Median: 1.25 vs. PSO: 1.38 )
Ranked among companies with meaningful Quick Ratio only.
PSO' s Quick Ratio Range Over the Past 10 Years
Min: 0.71  Med: 1.37 Max: 2.04
Current: 1.38
0.71
2.04
Days Inventory 33.90
PSO's Days Inventory is ranked lower than
51% of the 166 Companies
in the Global Publishing industry.

( Industry Median: 36.17 vs. PSO: 33.90 )
Ranked among companies with meaningful Days Inventory only.
PSO' s Days Inventory Range Over the Past 10 Years
Min: 33.83  Med: 48.72 Max: 74.83
Current: 33.9
33.83
74.83
Days Sales Outstanding 62.28
PSO's Days Sales Outstanding is ranked lower than
70% of the 159 Companies
in the Global Publishing industry.

( Industry Median: 70.13 vs. PSO: 62.28 )
Ranked among companies with meaningful Days Sales Outstanding only.
PSO' s Days Sales Outstanding Range Over the Past 10 Years
Min: 59.77  Med: 76.85 Max: 101.81
Current: 62.28
59.77
101.81
Days Payable 215.69
PSO's Days Payable is ranked higher than
83% of the 132 Companies
in the Global Publishing industry.

( Industry Median: 80.31 vs. PSO: 215.69 )
Ranked among companies with meaningful Days Payable only.
PSO' s Days Payable Range Over the Past 10 Years
Min: 46.82  Med: 66.29 Max: 256.11
Current: 215.69
46.82
256.11

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield % 2.10
PSO's Dividend Yield % is ranked higher than
79% of the 219 Companies
in the Global Publishing industry.

( Industry Median: 2.69 vs. PSO: 2.10 )
Ranked among companies with meaningful Dividend Yield % only.
PSO' s Dividend Yield % Range Over the Past 10 Years
Min: 2.1  Med: 4.11 Max: 9.14
Current: 2.1
2.1
9.14
Dividend Payout Ratio 0.23
PSO's Dividend Payout Ratio is ranked lower than
99.99% of the 110 Companies
in the Global Publishing industry.

( Industry Median: 0.43 vs. PSO: 0.23 )
Ranked among companies with meaningful Dividend Payout Ratio only.
PSO' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.23  Med: 0.78 Max: 1.99
Current: 0.23
0.23
1.99
3-Year Dividend Growth Rate -7.30
PSO's 3-Year Dividend Growth Rate is ranked lower than
57% of the 91 Companies
in the Global Publishing industry.

( Industry Median: 2.70 vs. PSO: -7.30 )
Ranked among companies with meaningful 3-Year Dividend Growth Rate only.
PSO' s 3-Year Dividend Growth Rate Range Over the Past 10 Years
Min: 0  Med: 6.7 Max: 12.5
Current: -7.3
0
12.5
Forward Dividend Yield % 2.13
PSO's Forward Dividend Yield % is ranked higher than
73% of the 211 Companies
in the Global Publishing industry.

( Industry Median: 3.09 vs. PSO: 2.13 )
Ranked among companies with meaningful Forward Dividend Yield % only.
N/A
5-Year Yield-on-Cost % 2.10
PSO's 5-Year Yield-on-Cost % is ranked higher than
79% of the 295 Companies
in the Global Publishing industry.

( Industry Median: 3.10 vs. PSO: 2.10 )
Ranked among companies with meaningful 5-Year Yield-on-Cost % only.
PSO' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.07  Med: 4.07 Max: 9.05
Current: 2.1
2.07
9.05
3-Year Average Share Buyback Ratio 0.60
PSO's 3-Year Average Share Buyback Ratio is ranked higher than
73% of the 113 Companies
in the Global Publishing industry.

( Industry Median: -0.90 vs. PSO: 0.60 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
PSO' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: -6.8  Med: -0.3 Max: 0.6
Current: 0.6
-6.8
0.6

Valuation & Return

vs
industry
vs
history
Price-to-Tangible-Book 6.71
PSO's Price-to-Tangible-Book is ranked lower than
87% of the 149 Companies
in the Global Publishing industry.

( Industry Median: 1.78 vs. PSO: 6.71 )
Ranked among companies with meaningful Price-to-Tangible-Book only.
PSO' s Price-to-Tangible-Book Range Over the Past 10 Years
Min: 4.84  Med: 7.12 Max: 115.86
Current: 6.71
4.84
115.86
Price-to-Intrinsic-Value-Projected-FCF 1.37
PSO's Price-to-Intrinsic-Value-Projected-FCF is ranked higher than
55% of the 97 Companies
in the Global Publishing industry.

( Industry Median: 1.26 vs. PSO: 1.37 )
Ranked among companies with meaningful Price-to-Intrinsic-Value-Projected-FCF only.
PSO' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 0  Med: 1.48 Max: 8.03
Current: 1.37
0
8.03
Price-to-Median-PS-Value 1.02
PSO's Price-to-Median-PS-Value is ranked higher than
69% of the 157 Companies
in the Global Publishing industry.

( Industry Median: 1.07 vs. PSO: 1.02 )
Ranked among companies with meaningful Price-to-Median-PS-Value only.
PSO' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0  Med: 0.85 Max: 2.34
Current: 1.02
0
2.34
Price-to-Graham-Number 1.86
PSO's Price-to-Graham-Number is ranked lower than
73% of the 92 Companies
in the Global Publishing industry.

( Industry Median: 1.25 vs. PSO: 1.86 )
Ranked among companies with meaningful Price-to-Graham-Number only.
PSO' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.83  Med: 1.93 Max: 8.84
Current: 1.86
1.83
8.84
Earnings Yield (Greenblatt) % 10.02
PSO's Earnings Yield (Greenblatt) % is ranked higher than
71% of the 201 Companies
in the Global Publishing industry.

( Industry Median: 4.53 vs. PSO: 10.02 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) % only.
PSO' s Earnings Yield (Greenblatt) % Range Over the Past 10 Years
Min: -44  Med: 6.8 Max: 11.6
Current: 10.02
-44
11.6
Forward Rate of Return (Yacktman) % -4.13
PSO's Forward Rate of Return (Yacktman) % is ranked lower than
66% of the 113 Companies
in the Global Publishing industry.

( Industry Median: 6.43 vs. PSO: -4.13 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) % only.
PSO' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -9.3  Med: 9.7 Max: 26
Current: -4.13
-9.3
26

More Statistics

Revenue (TTM) (Mil) $5,785.68
EPS (TTM) $ 1.02
Beta-0.36
Volatility17.57%
52-Week Range $8.88 - 12.73
Shares Outstanding (Mil)781.06 (ADR)

Analyst Estimate

Dec18 Dec19 Dec20
Revenue (Mil $) 5,679 5,721 5,779
EBIT (Mil $) 706 773 899
EBITDA (Mil $) 895 979 1,102
EPS ($) 1.16 0.62 0.67
EPS without NRI ($) 1.16 0.62 0.67
EPS Growth Rate
(Future 3Y To 5Y Estimate)
2.38%
Dividends per Share ($) 0.35 0.32 0.28

Piotroski F-Score Details

Piotroski F-Score: 77
Positive ROAY
Positive CFROAY
Higher ROA yoyY
CFROA > ROAN
Lower Leverage yoyY
Higher Current Ratio yoyN
Less Shares Outstanding yoyY
Higher Gross Margin yoyY
Higher Asset Turnover yoyY

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