Is Pearson PLC Stock a Good Investment?
Pearson PLC Investment Advice | PSO |
- Examine Pearson PLC's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Pearson PLC's leadership team and their track record. Good management can help Pearson PLC navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Publishing space and any emerging trends that could impact Pearson PLC's business and its evolving consumer preferences.
- Compare Pearson PLC's performance and market position to its competitors. Analyze how Pearson PLC is positioned in terms of product offerings, innovation, and market share.
- Check if Pearson PLC pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Pearson PLC's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Pearson PLC ADR stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Pearson PLC ADR is a good investment.
Sell | Buy |
Buy
Market Performance | OK | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Hold | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Pearson PLC Stock
Researching Pearson PLC's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The book value of the company was at this time reported as 5.58. The company has Price/Earnings To Growth (PEG) ratio of 0.68. Pearson PLC ADR last dividend was issued on the 9th of August 2024. The entity had 110:100 split on the April 4, 2014.
To determine if Pearson PLC is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Pearson PLC's research are outlined below:
| Latest headline from thestar.com: Man charged in Pearson airport gold heist sees U.S. gun-smuggling trial pushed back |
Pearson PLC Quarterly Good Will |
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Pearson PLC uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Pearson PLC ADR. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Pearson PLC's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 1st of March 2024 Upcoming Quarterly Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 1st of March 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Pearson PLC's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Pearson PLC's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2017-08-04 | 2017-06-30 | 16.11 | -0.02 | -16.13 | 100 |
Know Pearson PLC's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Pearson PLC is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Pearson PLC ADR backward and forwards among themselves. Pearson PLC's institutional investor refers to the entity that pools money to purchase Pearson PLC's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Abc Arbitrage Sa | 2024-12-31 | 296.5 K | Fmr Inc | 2024-12-31 | 281.9 K | Bank Of Montreal | 2024-12-31 | 280.9 K | Bmo Capital Markets Corp. | 2024-12-31 | 280.9 K | Geode Capital Management, Llc | 2024-12-31 | 265.9 K | Henry James International Management Inc. Usd | 2024-12-31 | 201.4 K | Henry James International Management Inc. Usd | 2024-12-31 | 201.4 K | Morgan Stanley - Brokerage Accounts | 2024-12-31 | 3.1 M | Blackrock Inc | 2024-12-31 | 2.2 M | Goldman Sachs Group Inc | 2024-12-31 | 2.1 M | Dimensional Fund Advisors, Inc. | 2024-12-31 | 1.7 M |
Pearson PLC's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 11.35 B.Market Cap |
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Pearson PLC's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.12 | 0.09 | |
| Return On Capital Employed | 0.09 | 0.11 | |
| Return On Assets | 0.06 | 0.06 | |
| Return On Equity | 0.11 | 0.15 |
Determining Pearson PLC's profitability involves analyzing its financial statements and using various financial metrics to determine if Pearson PLC is a good buy. For example, gross profit margin measures Pearson PLC's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Pearson PLC's profitability and make more informed investment decisions.
Evaluate Pearson PLC's management efficiency
Pearson PLC ADR has Return on Asset of 0.0485 % which means that on every $100 spent on assets, it made $0.0485 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0878 %, implying that it generated $0.0878 on every 100 dollars invested. Pearson PLC's management efficiency ratios could be used to measure how well Pearson PLC manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Pearson PLC's Return On Capital Employed is very stable compared to the past year. As of the 26th of February 2025, Return On Equity is likely to grow to 0.15, while Return On Tangible Assets are likely to drop 0.09. At this time, Pearson PLC's Non Currrent Assets Other are very stable compared to the past year. As of the 26th of February 2025, Other Assets is likely to grow to about 752.4 M, while Total Assets are likely to drop about 6.8 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 5.04 | 3.20 | |
| Tangible Book Value Per Share | 1.13 | 1.19 | |
| Enterprise Value Over EBITDA | 8.30 | 15.38 | |
| Price Book Value Ratio | 1.99 | 3.60 | |
| Enterprise Value Multiple | 8.30 | 15.38 | |
| Price Fair Value | 1.99 | 3.60 | |
| Enterprise Value | 6.8 B | 4.2 B |
Leadership at Pearson PLC emphasizes sustainable growth and financial prudence. Our analysis evaluates how these priorities impact the stock's performance in the market.
Basic technical analysis of Pearson Stock
As of the 26th of February, Pearson PLC holds the Coefficient Of Variation of 697.41, semi deviation of 1.05, and Risk Adjusted Performance of 0.109. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Pearson PLC, as well as the relationship between them.Pearson PLC's Outstanding Corporate Bonds
Pearson PLC issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Pearson PLC ADR uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Pearson bonds can be classified according to their maturity, which is the date when Pearson PLC ADR has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
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Understand Pearson PLC's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Pearson PLC's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.109 | |||
| Market Risk Adjusted Performance | 0.4567 | |||
| Mean Deviation | 0.7971 | |||
| Semi Deviation | 1.05 | |||
| Downside Deviation | 1.4 | |||
| Coefficient Of Variation | 697.41 | |||
| Standard Deviation | 1.16 | |||
| Variance | 1.34 | |||
| Information Ratio | 0.1305 | |||
| Jensen Alpha | 0.1543 | |||
| Total Risk Alpha | 0.1483 | |||
| Sortino Ratio | 0.1081 | |||
| Treynor Ratio | 0.4467 | |||
| Maximum Drawdown | 6.91 | |||
| Value At Risk | (1.84) | |||
| Potential Upside | 2.0 | |||
| Downside Variance | 1.95 | |||
| Semi Variance | 1.11 | |||
| Expected Short fall | (0.78) | |||
| Skewness | 0.0294 | |||
| Kurtosis | 2.14 |
| Risk Adjusted Performance | 0.109 | |||
| Market Risk Adjusted Performance | 0.4567 | |||
| Mean Deviation | 0.7971 | |||
| Semi Deviation | 1.05 | |||
| Downside Deviation | 1.4 | |||
| Coefficient Of Variation | 697.41 | |||
| Standard Deviation | 1.16 | |||
| Variance | 1.34 | |||
| Information Ratio | 0.1305 | |||
| Jensen Alpha | 0.1543 | |||
| Total Risk Alpha | 0.1483 | |||
| Sortino Ratio | 0.1081 | |||
| Treynor Ratio | 0.4467 | |||
| Maximum Drawdown | 6.91 | |||
| Value At Risk | (1.84) | |||
| Potential Upside | 2.0 | |||
| Downside Variance | 1.95 | |||
| Semi Variance | 1.11 | |||
| Expected Short fall | (0.78) | |||
| Skewness | 0.0294 | |||
| Kurtosis | 2.14 |
Consider Pearson PLC's intraday indicators
Pearson PLC intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Pearson PLC stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 4122.64 | |||
| Daily Balance Of Power | (0.62) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 16.9 | |||
| Day Typical Price | 16.91 | |||
| Price Action Indicator | (0.02) | |||
| Period Momentum Indicator | (0.10) | |||
| Relative Strength Index | 54.97 |
Pearson PLC Corporate Filings
6K | 3rd of February 2025 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
| 17th of July 2024 Other Reports | ViewVerify |
Pearson Stock media impact
Far too much social signal, news, headlines, and media speculation about Pearson PLC that are available to investors today. That information is available publicly through Pearson media outlets and privately through word of mouth or via Pearson internal channels. However, regardless of the origin, that massive amount of Pearson data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Pearson PLC news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Pearson PLC relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Pearson PLC's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Pearson PLC alpha.
Pearson PLC Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Pearson PLC can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Pearson PLC Corporate Directors
| Linda Lorimer | Independent Non-Executive Director | Profile | |
| Vivienne Cox | Senior Non-Executive Independent Director | Profile | |
| Josh Lewis | Non-Executive Independent Director | Profile | |
| Sally Johnson | Chief Financial Officer, Executive Director | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Pearson PLC ADR. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Publishing space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Pearson PLC. If investors know Pearson will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Pearson PLC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.12) | Dividend Share 0.231 | Earnings Share 0.63 | Revenue Per Share | Quarterly Revenue Growth (0.07) |
The market value of Pearson PLC ADR is measured differently than its book value, which is the value of Pearson that is recorded on the company's balance sheet. Investors also form their own opinion of Pearson PLC's value that differs from its market value or its book value, called intrinsic value, which is Pearson PLC's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Pearson PLC's market value can be influenced by many factors that don't directly affect Pearson PLC's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Pearson PLC's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Pearson PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Pearson PLC's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.