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PosiFunda · Fundamentals

Pearson plc

PosiFunda Ratios Only on PositoAI

PositoAI's own ratios from Pearson plc's yearly results (2022–2025), compared with companies in United Kingdom. Tap ? on any ratio for what it means.

Where £100 of sales goes

£83Operating costs£2.1Interest£9.4Net profit£4.5Paid as dividends

Latest year (Dec 2025). Taxes and other income are not shown, so the parts need not add up to 100.

Cash quality

Profit Cash Ratio

£158

Over the last 3 years, every £100 of reported profit came with £158 of operating cash.

Lower than 55% of companies in United Kingdom.

Self-Funding Ratio

4.7×

Over the last 3 years its own operating cash covered its investment spending (capex) 4.7 times.

Higher than 67% of companies in United Kingdom.

Cash Locked Ratio

£11

For every £100 of sales, £11 is tied up in day-to-day operations (money owed by customers + stock − money owed to suppliers), against £14 tied up three years earlier.

More money tied up than 55% of companies in United Kingdom.

Growth quality

Steadiness Ratio

1/3 · 2/3

Sales grew in 1 of the last 3 years; profit grew in 2 of 3.

Less steady than 70% of companies in United Kingdom.

Growth Efficiency Ratio

—

Sales fell 7%

Sales fell 7% in 3 years, so extra profit per extra sales cannot be measured.

Asset Productivity Ratio

-7% / -12%

In 3 years sales changed by -7% while total assets changed by -12%. Both moved at about the same pace.

Balance-sheet strength

Debt Due Cover Ratio

No debt due

No debt falls due within a year, according to the latest yearly balance sheet.

Cash Cushion Ratio

−14%

Debt, after subtracting cash, equals 14% of its market value (net debt).

Higher than 53% of companies in United Kingdom.

Tangible Assets Ratio

53%

Of every £100 the company owns, £53 is in tangible assets such as plants, cash, stock and receivables; the rest is goodwill and other intangibles.

Less tangible than 81% of companies in United Kingdom.

Tangible Net Worth Ratio

18%

Of every £100 of net worth, £18 is tangible; the rest is goodwill and other intangibles, often from buying other companies.

Less tangible than 60% of companies in United Kingdom.

Shareholders

Shareholder Slice Ratio

−11%

Share count fell 11% in 3 years (buybacks), so each share's slice of the company became larger. Dividends paid equalled 41% of profit over the same period.

Standard fundamentals

P/E, P/B, ROE, debt, growth and more (14)

Pearson plc owes £0.47 for every £1 it owns. Net profit fell 23% in the year to Dec 2025, and grew 11% a year on average over 3 years.

Compared with companies in United Kingdom · latest annual results Dec 2025.

P/E ratio

27.4

Investors pay £27.4 for every £1 of Pearson plc's yearly profit, higher than 71% of companies in United Kingdom.

P/B ratio

2.46

The share price is 2.46 times Pearson plc's book value per share, higher than 50% of companies in United Kingdom.

Market cap

£8.2 B

The total market value of all of Pearson plc's shares at today's price (share price × number of shares), smaller than 61% of companies in United Kingdom. PosiCap size class: Tito Cap.

Net worth (book value)

£3.3 B

What Pearson plc would have left on paper if it sold everything it owns and paid everything it owes, from its latest balance sheet (30 Jun 2026).

Book value per share

£5.56

Net worth divided by the number of shares. The share price of £13.71 is 2.5 times this, which is the P/B above.

Return on equity (ROE)

9.2%

Pearson plc earned 9.2% on its shareholders' money over the last year, lower than 65% of companies in United Kingdom.

Owes vs Owns

0.47×

Pearson plc owes £0.47 for every £1 it owns (low), lower than 73% of companies in United Kingdom.

Dividend yield

1.88%

Pearson plc pays 1.88% of its share price as dividends a year, lower than 70% of dividend-paying companies in United Kingdom.

Revenue growth

+1%

Revenue rose 1% in the year to Dec 2025, and shrank 2% a year on average over 3 years.

Profit growth

-23%

Net profit fell 23% in the year to Dec 2025, and grew 11% a year on average over 3 years.

Profit margin

9.4%

Pearson plc keeps £9 of every £100 of revenue as net profit.

Cash quality

2.0×

Cash from Pearson plc's business was 2.0× its reported profit in the year to Dec 2025 — its profit turned into cash.

Interest cover

7.9×

Pearson plc's operating profit covered its interest costs 7.9 times in the year to Dec 2025.

Cash vs debt

Net debt

Pearson plc had £1.1 B more debt than cash (net debt) at Dec 2025.

Questions

What is Pearson plc's P/E ratio?

Investors pay £27.4 for every £1 of Pearson plc's yearly profit, higher than 71% of companies in United Kingdom.

How is P/B calculated on PositoAI?

P/B is market cap divided by net worth from the latest balance sheet. For Pearson plc: £8.2 B ÷ £3.3 B (30 Jun 2026) = 2.5.

What is Pearson plc's return on equity?

Pearson plc earned 9.2% on its shareholders' money over the last year, lower than 65% of companies in United Kingdom.

How much does Pearson plc owe compared with what it owns?

Pearson plc owes £0.47 for every £1 it owns (low), lower than 73% of companies in United Kingdom.

Does Pearson plc pay a dividend?

Yes. Pearson plc pays 1.88% of its share price as dividends a year, lower than 70% of dividend-paying companies in United Kingdom.

Is Pearson plc's revenue growing?

Revenue rose 1% in the year to Dec 2025, and shrank 2% a year on average over 3 years.

Figures from the company's yearly results and PositoAI's own data. Full tables are on the Go Deep tab. What each figure means. PositoAI is for research and education only and is not investment advice.

Disclaimer — PositoAI is a research and screening tool for educational and informational purposes. It is not investment advice or a recommendation to buy or sell any security or mutual fund. Scores and rankings are calculated by PositoAI's own method using publicly available data, which may be incomplete, delayed or inaccurate, and past performance does not indicate future results. AI summaries of company news may contain errors. PositoAI is not registered with the SEC, SEBI or any other regulatory authority. Please do your own research or consult a licensed financial advisor before investing.