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Company Analysis Pearson plc
1. Summary
Advantages
- The stock's return over the last year (-3.52%) is higher than the sector average (-34.79%).
Disadvantages
- Price (14.51 $) is higher than fair price (3.41 $)
- Dividends (1.91%) are below the sector average (3.95%).
- Current debt level 21.36% has increased over 5 years from 11.96%.
- The company's current efficiency (ROE=10.83%) is lower than the sector average (ROE=1150.52%)
Similar companies
2. Share price and performance
2.1. Share price
2.3. Market efficiency
| Pearson plc | Communication Services | Index | |
|---|---|---|---|
| 7 days | 0.3% | -43.3% | -0.7% |
| 90 days | -2% | -45% | 9.7% |
| 1 year | -3.5% | -34.8% | 14.2% |
PSO vs Sector: Pearson plc has outperformed the "Communication Services" sector by 31.26% over the past year.
PSO vs Market: Pearson plc has significantly underperformed the market by -17.75% over the past year.
Stable price: PSO is not significantly more volatile than the rest of the market on "New York Stock Exchange" over the last 3 months, with typical variations of +/- 5% per week.
Long period: PSO with weekly volatility of -0.0678% over the past year.
3. Summary of the report
4. Fundamental Analysis
4.1. Stock price and price forecast
Above fair price: The current price (14.51 $) is higher than the fair price (3.41 $).
Price is higher than fair: The current price (14.51 $) is 76.5% higher than the fair price.
4.2. P/E
P/E vs Sector: The company's P/E (20.17) is lower than that of the sector as a whole (294.62).
P/E vs Market: The company's P/E (20.17) is lower than that of the market as a whole (52.32).
4.2.1 P/E Similar companies
4.3. P/BV
P/BV vs Sector: The company's P/BV (2.16) is lower than that of the sector as a whole (1120.22).
P/BV vs Market: The company's P/BV (2.16) is lower than that of the market as a whole (18.5).
4.3.1 P/BV Similar companies
4.4. P/S
P/S vs Sector: The company's P/S indicator (2.46) is lower than that of the sector as a whole (782.65).
P/S vs Market: The company's P/S indicator (2.46) is lower than that of the market as a whole (27.95).
4.4.1 P/S Similar companies
4.5. EV/Ebitda
EV/Ebitda vs Sector: The company's EV/Ebitda (8.68) is lower than that of the sector as a whole (1116.25).
EV/Ebitda vs Market: The company's EV/Ebitda (8.68) is lower than that of the market as a whole (37.43).
5. Profitability
5.1. Profitability and revenue
5.2. Earnings per share - EPS
5.3. Past profitability Net Income
Yield Trend: Rising and has grown by 6.3% over the last 5 years.
Earnings Slowdown: The last year's return (0%) is below the 5-year average return (6.3%).
Profitability vs Sector: The return for the last year (0%) exceeds the return for the sector (-11.06%).
5.4. ROE
ROE vs Sector: The company's ROE (10.83%) is lower than that of the sector as a whole (1150.52%).
ROE vs Market: The company's ROE (10.83%) is lower than that of the market as a whole (36.05%).
5.5. ROA
ROA vs Sector: The company's ROA (6.37%) is lower than that of the sector as a whole (88.18%).
ROA vs Market: The company's ROA (6.37%) is lower than that of the market as a whole (11.45%).
5.6. ROIC
ROIC vs Sector: The company's ROIC (3.53%) is lower than that of the sector as a whole (16.89%).
ROIC vs Market: The company's ROIC (3.53%) is lower than that of the market as a whole (10.19%).
7. Dividends
7.1. Dividend yield vs Market
Low yield: The dividend yield of the company 1.91% is below the average for the sector '3.95%.
7.2. Stability and increase in payments
Dividend stability: The company's dividend yield 1.91% has been steadily paid over the past 7 years, DSI=0.79.
Weak dividend growth: The company's dividend yield 1.91% has been growing weakly or stagnant over the past 5 years. Growth over only 2 years.
7.3. Payout percentage
Dividend Coverage: Current payments from income (35.94%) are at a comfortable level.
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