Pearson plc (PSON.L) stock analysis

In our weekly check, Pearson plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 4, red flags: 2.

About Pearson plc

Pearson plc is a Communication Services company (Publishing) based in the United Kingdom, listed on LSE as PSON.L.

What our checks show for PSON.L

Red flags

• Revenue fell 2.3% a year over the last 3 years.
• The stock has fallen as much as 72% from a peak. Would you have held through that?

Warning signs

• The gross margin fell by 1 points, to 48%: costs are rising faster than prices.
• Analysts expect only about 4.4% a year of growth in revenue.
• The net margin is only 9.4%: little room if costs rise.
• The stock is still below its previous peak.

Strengths

• Operating profit covers interest 11.9 times over.
• The net margin rose by 4.2 points over 5 years, to 9.4%.
• Operating cash flow is 2.06x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 19.9% a year over the next years.
• Analysts expect the net margin to improve by 4.9 points from today's 9.4%.
• Earnings per share grew 15.6% a year over the last 3 years.

Similar companies

NYT · INF.L · NWS

Questions

What grade does Pearson plc (PSON.L) have?

In our weekly check, Pearson plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 4, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of PSON.L stock?

This week's biggest flags for Pearson plc: Weak revenue growth, Deep past fall, Gross margin falling. In total 6 of 25 checks show a warning or a red flag.

What does Pearson plc do?

Pearson plc is a Communication Services company (Publishing) based in the United Kingdom, listed on LSE as PSON.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

Open the full analysis