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Pearson Plc

  • Market Cap: Large Cap
  • Industry: Media & Entertainment
  • ISIN: GB0006776081
GBP
9.99
0.05 (0.54%)

Dec 04

LON

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

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Comparison
Company
Score
Quality
Valuation
Financial
Technical
Wilmington plc
Pearson Plc
Future Plc
Bloomsbury Publishing Plc
Merit Group Plc
Time Out Group Plc
Centaur Media Plc
The Quarto Group, Inc.
Why is Pearson Plc ?
1
Poor Management Efficiency with a low ROCE of 8.63%
  • The company has been able to generate a Return on Capital Employed (avg) of 8.63% signifying low profitability per unit of total capital (equity and debt)
2
Company has a low Debt to Equity ratio (avg) at times
3
Poor long term growth as Net Sales has grown by an annual rate of -0.07% over the last 5 years
4
Positive results in Jun 25
  • OPERATING CASH FLOW(Y) Highest at GBP 1,973 MM
  • ROCE(HY) Highest at 11.94%
  • RAW MATERIAL COST(Y) Fallen by -4.47% (YoY)
5
With ROE of 12.34%, it has a expensive valuation with a 1.96 Price to Book Value
  • Over the past year, while the stock has generated a return of -19.50%, its profits have risen by 26.2% ; the PEG ratio of the company is 0.6
6
Below par performance in long term as well as near term
  • Along with generating -19.50% returns in the last 1 year, the stock has also underperformed FTSE 100 in the last 3 years, 1 year and 3 months
stock-recommendationReal-Time Research Report
Verdict Report
How much should you hold?
  1. Overall Portfolio exposure to Pearson Plc should be less than 10%
  2. Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Pearson Plc for you?

Low Risk, Low Return

Absolute
Risk Adjusted
Volatility
Pearson Plc
-19.5%
0.23
20.79%
FTSE 100
15.94%
1.23
12.99%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors
Factor
Value
Sales Growth (5y)
-0.07%
EBIT Growth (5y)
14.99%
EBIT to Interest (avg)
5.02
Debt to EBITDA (avg)
0.19
Net Debt to Equity (avg)
0.12
Sales to Capital Employed (avg)
0.72
Tax Ratio
14.76%
Dividend Payout Ratio
37.22%
Pledged Shares
0
Institutional Holding
0.05%
ROCE (avg)
8.63%
ROE (avg)
8.28%
stock-recommendationValuation
Valuation Scorecard stock-summary
stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
1.96
EV to EBIT
13.97
EV to EBITDA
7.41
EV to Capital Employed
1.80
EV to Sales
2.20
PEG Ratio
0.58
Dividend Yield
82.02%
ROCE (Latest)
12.87%
ROE (Latest)
12.34%
stock-recommendationTechnicals
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend
Financial Trend Scorecard stock-summary
stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company
OPERATING CASH FLOW(Y)

Highest at GBP 1,973 MM

ROCE(HY)

Highest at 11.94%

RAW MATERIAL COST(Y)

Fallen by -4.47% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 21.36%

DIVIDEND PER SHARE(HY)

Highest at GBP 3.33

-2What is not working for the Company
NET SALES(Q)

Lowest at GBP 1,722 MM

OPERATING PROFIT(Q)

Lowest at GBP 478 MM

Here's what is working for Pearson Plc
Operating Cash Flow
Highest at GBP 1,973 MM and Grown
In each year in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Inventory Turnover Ratio
Highest at 21.36%
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share
Highest at GBP 3.33
in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (GBP)

Raw Material Cost
Fallen by -4.47% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Pearson Plc
Net Sales
Lowest at GBP 1,722 MM
in the last five periods
MOJO Watch
Near term sales trend is negative

Net Sales (GBP MM)

Operating Profit
Lowest at GBP 478 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (GBP MM)

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