-0.37%
3.35%
15.93%
27.92%
39.79%
117.94%
136.86%
AI Spotlight on PSON
Company Description
Pearson plc provides educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally.It operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Higher Education, and Workforce Skills.The Assessment & Qualifications segment offers Pearson VUE, US student assessment, clinical assessment, UK GCSE, and A levels and international academic qualifications.
The Virtual Learning segment provides virtual schools and online program management services.The English Language Learning segment offers Pearson test of English, institutional courseware, and English online solutions.The Higher Education segment provides the US, Canadian, and international higher education courseware businesses.
The Workforce Skills offers BTEC, GED, TalentLens, Faethm, Pearson college, and apprenticeships.Pearson plc was founded in 1844 and is headquartered in London, the United Kingdom.
Market Data
| Last Price | 1342.5 |
| Change Percentage | -0.37% |
| Open | 1349.5 |
| Previous Close | 1347.5 |
| Market Cap ( Millions) | 9119 |
| Volume | 1306024 |
| Year High | 1353.5 |
| Year Low | 923.6 |
| M A 50 | 1275.32 |
| M A 200 | 1091.88 |
Financial Ratios
| FCF Yield | 5.66% |
| Dividend Yield | 1.72% |
| ROE | 9.05% |
| Debt / Equity | 42.49% |
| Net Debt / EBIDTA | 146.90% |
| Price To Book | 2.41 |
| Price Earnings Ratio | 26.18 |
| Price To FCF | 17.67 |
| Price To sales | 2.57 |
| EV / EBITDA | 11.93 |
News
- Jan -28 - Where the UK’s ISA millionaires are investing
- Jan -22 - $1.1 Trillion at Stake: Pearson Report Urges Action, Solutions for Skills Gap
- Jan -16 - Here’s Why Pearson plc (PSO) Is Gaining Momentum From Key Collaborations
- Jan -16 - Pearson 2024 Trading Update (Unaudited)
- Jan -15 - Pearson Results Show Philippines Ranks Above Gobal Average in English Proficiency
- Jan -14 - Pearson and Microsoft Announce Multi-Year Partnership to Transform the Future of Learning and Work with AI
- Jan -09 - Pearson and Cebr research: £8.7 billion benefit for UK economy from investment in technology in schools
- Dec -29 - Is Pearson plc (PSO) Among the U.K. Dividend Aristocrats for 2024?
- Dec -17 - Pearson launches Beyond PTE at Southeast Asia Partner Summit
- Dec -12 - End of Year AI Report: More higher ed students embrace AI for active learning; educators see instructional opportunities
- Dec -07 - Estimating The Intrinsic Value Of Pearson plc (LON:PSON)
- Dec -04 - PEARSON ENGLISH LANGUAGE TEACHING AWARD WINNER ONE OF 12,000 TEACHERS HELPING INDONESIAN GOVERNMENT LIFT ENGLISH PROFICIENCY
- Oct -29 - Pearson Underlying Sales Rise, Plans Further Growth Through AI
- Oct -29 - Pearson Underlying Sales Rise On Growth In all Divisions
- Oct -29 - Pearson 2024 Nine Month Trading Update (Unaudited)
- Oct -24 - Pearson and ServiceNow collaborate to supercharge workforce development and employee experiences in the age of AI
- Oct -23 - Pearson and ServiceNow Collaborate to Supercharge Workforce Development and Employee Experiences in the Age of AI
- Oct -21 - All Jobs are Tech Jobs: Pearson's Skills Map U.S. Predicts Dramatic Shifts in Employment Landscape; 1.9m New Jobs Through 2028
- Oct -01 - Pearson Unveils Generative AI Foundations Certification
- Sep -18 - Pearson Expands College and Early Career Programming to More Than Half of Connections Academy Schools in the Country
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Assessment & Qualifications
Expected Growth : 8.2 %
What the company do ?
Pearson's Assessment & Qualifications provides educational assessments and qualifications, such as GCSEs and A-levels, to measure student learning outcomes and skills.
Why we expect these perspectives ?
Pearson plc's 8.2% growth in Assessment & Qualifications is driven by increasing demand for digital assessments, expansion in emerging markets, and a growing need for workforce skills development. Additionally, the segment benefits from a strong brand reputation, strategic partnerships, and a shift towards online proctoring and AI-powered testing solutions.
Segment n°2 -> Higher Education
Expected Growth : 9.33 %
What the company do ?
Pearson's Higher Education segment provides educational materials, technology, and services to institutions and students, focusing on digital learning solutions and courseware.
Why we expect these perspectives ?
Pearson plc's Higher Education segment growth of 9.33% is driven by increasing demand for online and blended learning, expansion in emerging markets, and strategic partnerships with universities. Additionally, the shift towards digital content and adaptive learning solutions, as well as the company's efforts to improve affordability and accessibility, contribute to this growth.
Segment n°3 -> Virtual Learning
Expected Growth : 11.67 %
What the company do ?
Virtual Learning from Pearson plc is a digital education platform offering personalized, interactive, and engaging learning experiences for students and teachers.
Why we expect these perspectives ?
Pearson plc's 11.67% growth in Virtual Learning is driven by increasing demand for online education, advancements in digital learning platforms, and strategic partnerships with educational institutions. Additionally, the shift towards personalized and adaptive learning, as well as the need for continuous skill development in a rapidly changing job market, contribute to the segment's growth.
Segment n°4 -> English Language Learning
Expected Growth : 12.57 %
What the company do ?
English Language Learning from Pearson plc offers online educational resources and courses to help learners improve their English language skills, including reading, writing, listening, and speaking.
Why we expect these perspectives ?
Pearson plc's English Language Learning segment growth of 12.57% is driven by increasing global demand for online learning, expansion in emerging markets, and strategic partnerships. Additionally, the shift towards digital learning, growing need for English language proficiency, and Pearson's strong brand recognition contribute to this growth.
Segment n°5 -> Workforce Skills
Expected Growth : 9.82 %
What the company do ?
Workforce Skills from Pearson plc refers to a set of skills and competencies that enable individuals to perform effectively in the workplace, focusing on areas like communication, teamwork, and problem-solving.
Why we expect these perspectives ?
Pearson plc's 9.82% growth in Workforce Skills is driven by increasing demand for digital skills training, government initiatives for workforce development, and growing adoption of online learning platforms. Additionally, Pearson's strategic partnerships and expansion into emerging markets have contributed to this growth.
Segment n°6 -> Strategic Review
Expected Growth : 9.03 %
What the company do ?
Pearson plc's Strategic Review is a comprehensive assessment of the company's business portfolio, identifying areas for growth, divestment, and restructuring to enhance shareholder value.
Why we expect these perspectives ?
Pearson plc's 9.03% growth is driven by strategic review initiatives, focusing on digital transformation, cost savings, and portfolio optimization. Key drivers include expansion in online learning, growth in assessment and qualifications, and increased demand for English language learning. Additionally, the company's shift towards a more agile and efficient operating model has contributed to improved profitability.
Pearson Plc Products
| Product Range | What is it ? |
|---|---|
| Assessments | Pearson's assessments provide educators with the tools to measure student progress, identify knowledge gaps, and inform instruction. |
| Courseware | Pearson's courseware provides interactive and engaging learning experiences for students, including online homework, tutorials, and quizzes. |
| Digital Learning Platforms | Pearson's digital learning platforms provide a comprehensive online learning environment for students, including online textbooks, multimedia content, and collaboration tools. |
| English Language Learning | Pearson's English language learning solutions provide instructional materials, online resources, and assessments to help learners develop English language skills. |
| Higher Education Services | Pearson's higher education services provide institutions with consulting, technology, and outsourcing services to improve student outcomes and operational efficiency. |
| K-12 Curriculum | Pearson's K-12 curriculum solutions provide instructional materials, online resources, and assessments for math, science, language arts, and social studies. |
| Professional Certification | Pearson's professional certification solutions provide testing and assessment services for professional certifications, such as IT, healthcare, and finance. |
| Tutoring and Test Prep | Pearson's tutoring and test prep services provide personalized learning support and test preparation for students, including SAT, ACT, and GED prep. |
| Vocational and Career Training | Pearson's vocational and career training solutions provide instructional materials, online resources, and assessments for career and technical education. |
Pearson plc's Porter Forces
Threat Of Substitutes
Pearson plc operates in the education industry, where there are limited substitutes for its products and services. However, the rise of online learning platforms and digital resources poses a moderate threat of substitutes.
Bargaining Power Of Customers
Pearson plc's customers, primarily educational institutions and students, have limited bargaining power due to the company's strong brand reputation and diversified product offerings.
Bargaining Power Of Suppliers
Pearson plc has a diversified supply chain, and its suppliers have limited bargaining power due to the company's large scale and global presence.
Threat Of New Entrants
The education industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to compete with Pearson plc.
Intensity Of Rivalry
The education industry is highly competitive, with several established players, including McGraw-Hill, Houghton Mifflin Harcourt, and Wiley, competing with Pearson plc for market share.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 14.57% |
| Debt Cost | 5.55% |
| Equity Weight | 85.43% |
| Equity Cost | 5.55% |
| WACC | 5.55% |
| Leverage | 17.06% |
Pearson plc : Quality Control
Pearson plc passed 7 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| RCS.MI | RCS MediaGroup S.p.A. operates as a multimedia publishing company in Italy, Spain, and internationally. The company publishes newspapers under the Corriere della Sera, Corriere Salute, SOLFERINO, Buone Notizie, Dataroom, La … |
| TEL.OL | Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. Its principal products and services include mobile communication, fixed line communication, and broadcasting services. The company's mobile communication … |
| INF.L | Informa plc operates as an intelligence, events, and scholarly research company worldwide. It operates through five divisions: Informa Connect, Informa Intelligence, Informa Markets, Informa Tech, and Taylor & Francis. The … |
| SCHB.OL | Schibsted ASA, together with its subsidiaries, operates as a media company. The company operates through Nordic Marketplaces, News Media, eCommerce & Distribution, and Financial Services & Ventures segments. It operates … |
| OPL.WA | Orange Polska S.A., together with its subsidiaries, provides telecommunications services in Poland. It offers mobile and fixed telecommunications services, including calls, messaging, content, and access to the Internet and TV; … |
Peers Metrics
DCF BETA
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Scoring Insights
Peers Group Analysis
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RCS MediaGroup
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Telenor
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Pearson
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Orange Polska
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Informa
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