PearsonFRA:PES +0.23%73 Net Margin % is 9.22% as of Dec. 2025, which is 0% above its 10-year median of 9.19. GuruFocus rates FRA:PES with a GF Score™ of 73/100 and a GF Value™ of €12.42 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,024 Media - Diversified companies, Pearson ranks better than 78.61% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Pearson's Net Income for the
six
months ended in Dec. 2025 was €195 Mil. Pearson's Revenue for the
six
months ended in Dec. 2025 was €2,121 Mil. Therefore, Pearson's net margin for the quarter that ended in Dec. 2025 was 9.22%.
The historical rank and industry rank for Pearson's Net Margin % or its related term are showing as below:
FRA:PES'
s Net Margin % Range Over the Past 10 Years
Min: -51.34 Med: 9.19 Max: 14.24
Current: 9.37
FRA:PES's Net Margin % is ranked better than 78.61% of 1024
companies
in the Media - Diversified industry
Industry Median: 1.225
vs FRA:PES: 9.37
Pearson (FRA:PES) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Pearson Net Margin % Related Terms
Pearson Net Margin % Historical Data
* Premium members only.
The historical data trend for Pearson's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Publishing subindustry, Pearson's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Pearson Net Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Pearson's Net Margin % distribution charts can be found below:
* The bar in red indicates where Pearson's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Pearson (FRA:PES) has a Net Margin % of 9.22% as of Dec. 2025. Net margin is the ratio of total net income to net sales. View historical data on Pearson and its competitors. This is near median its historical median of 9.19. According to the industry distribution chart, Pearson ranks #219 out of 1024 companies in the Media - Diversified industry, placing it in the top 21.4%.
Is Pearson's Net Margin % too high?
Pearson's current Net Margin % of 9.22% is near median its 10-year median of 9.19. The Media - Diversified industry median Net Margin % is 1.23. Pearson's value of 9.22% is 652.7% above this industry median. Based on the distribution chart, Pearson ranks #219 out of 1024 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, Pearson has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pearson's Net Margin % compare to NYT and WLY?
According to the Media - Diversified industry distribution chart, Pearson ranks #219 out of 1024 companies for Net Margin %. This places Pearson in the top 21% of its industry — outperforming the majority of peers. The industry median Net Margin % is 1.23. Pearson's value of 9.22% is 652.7% above this benchmark. While the company's 10-year median is 9.19 vs. the industry median of 1.23, Pearson has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Media - Diversified company?
The median Net Margin % among Media - Diversified companies is 1.23, based on 1,024 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Pearson's current Net Margin % of 9.22% is 652.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Pearson and its competitors. For the Media - Diversified industry, the median Net Margin % is 1.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pearson's current Net Margin % is 9.22%, which is near median its own 10-year median of 9.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pearson stock overvalued right now?
Based on GuruFocus' analysis, Pearson (FRA:PES) is currently considered Fairly Valued. The stock's GF Value™ is €12.42, compared to a current price of €12.89 — trading 3.8% above its estimated fair value. The current Net Margin % is 9.22%, which is near median its 10-year median of 9.19 and 652.7% above the Media - Diversified industry median of 1.23. Pearson's overall GF Score™ is 73/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Pearson (FRA:PES), the current Net Margin % is 9.22% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Pearson (FRA:PES) Overvalued in 2026?
Based on GuruFocus' analysis, Pearson stock appears to be overvalued.
The current stock price of €12.89 is trading 3.8% above its estimated GF Value™ of €12.42.
GuruFocus considers Pearson to be Fairly Valued.
Key valuation signals for FRA:PES:
Net Margin %: 9.22% (near median its 10-year median of 9.19)
GF Value™: €12.42 vs. price of €12.89 (3.8% above fair value)
Industry Position: 652.7% above the Media - Diversified median (#219 of 1024)
No single metric tells the full story. See the FRA:PES stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
UK-listed Pearson is a testing and educational provider. Pearson's primary operations are in assessment and qualifications, testing and higher education, but they also provide English education and testing, virtual learning, prehiring testing and screening, and upskilling/reskilling. The company divested noncore businesses, including the Financial Times, The Economist, and publishing house Penguin, and is now focused on being an educational resource and testing provider.
73GF Score
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