Pearson PLC
LSE:PSON

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Pearson PLC
LSE:PSON
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Price: 1 192 GBX 0.08% Market Closed
Market Cap: 7.9B GBX
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

High Profitability Stocks
Media Industry

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Pearson PLC

Revenue
3.5B GBP
Cost of Revenue
-1.8B GBP
Gross Profit
1.8B GBP
Operating Expenses
-1.3B GBP
Operating Income
507m GBP
Other Expenses
-158m GBP
Net Income
349m GBP

Margins Comparison
Pearson PLC Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
UK
Pearson PLC
LSE:PSON
8.3B GBP
51%
14%
10%
US
News Corp
NASDAQ:NWSA
16.4B USD
50%
8%
3%
US
New York Times Co
NYSE:NYT
8.9B USD
49%
14%
11%
NO
Schibsted ASA
OSE:SCHA
84.9B NOK
98%
60%
173%
SA
Saudi Research and Media Group
SAU:4210
19.4B SAR
29%
14%
12%
ZA
Caxton and CTP Publishers and Printers Ltd
JSE:CAT
4.7B Zac
45%
10%
9%
CN
People.cn Co Ltd
SSE:603000
28B CNY
50%
12%
13%
CN
Jiangsu Phoenix Publishing & Media Corp Ltd
SSE:601928
26.9B CNY
37%
13%
19%
CN
China Literature Ltd
HKEX:772
26.9B HKD
49%
9%
12%
CN
China South Publishing & Media Group Co Ltd
SSE:601098
22.5B CNY
42%
12%
12%
CN
Shandong Publishing & Media Co Ltd
SSE:601019
22.3B CNY
36%
13%
17%
Country UK
Market Cap 8.3B GBP
Gross Margin
51%
Operating Margin
14%
Net Margin
10%
Country US
Market Cap 16.4B USD
Gross Margin
50%
Operating Margin
8%
Net Margin
3%
Country US
Market Cap 8.9B USD
Gross Margin
49%
Operating Margin
14%
Net Margin
11%
Country NO
Market Cap 84.9B NOK
Gross Margin
98%
Operating Margin
60%
Net Margin
173%
Country SA
Market Cap 19.4B SAR
Gross Margin
29%
Operating Margin
14%
Net Margin
12%
Country ZA
Market Cap 4.7B Zac
Gross Margin
45%
Operating Margin
10%
Net Margin
9%
Country CN
Market Cap 28B CNY
Gross Margin
50%
Operating Margin
12%
Net Margin
13%
Country CN
Market Cap 26.9B CNY
Gross Margin
37%
Operating Margin
13%
Net Margin
19%
Country CN
Market Cap 26.9B HKD
Gross Margin
49%
Operating Margin
9%
Net Margin
12%
Country CN
Market Cap 22.5B CNY
Gross Margin
42%
Operating Margin
12%
Net Margin
12%
Country CN
Market Cap 22.3B CNY
Gross Margin
36%
Operating Margin
13%
Net Margin
17%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Pearson PLC Competitors

Country Company Market Cap ROE ROA ROCE ROIC
UK
Pearson PLC
LSE:PSON
8.3B GBP
9%
5%
9%
7%
US
News Corp
NASDAQ:NWSA
16.4B USD
4%
2%
6%
4%
US
New York Times Co
NYSE:NYT
8.9B USD
16%
11%
17%
13%
NO
Schibsted ASA
OSE:SCHA
84.9B NOK
74%
53%
21%
17%
SA
Saudi Research and Media Group
SAU:4210
19.4B SAR
14%
7%
12%
10%
ZA
Caxton and CTP Publishers and Printers Ltd
JSE:CAT
4.7B Zac
14%
11%
13%
11%
CN
People.cn Co Ltd
SSE:603000
28B CNY
8%
5%
6%
11%
CN
Jiangsu Phoenix Publishing & Media Corp Ltd
SSE:601928
26.9B CNY
14%
8%
9%
13%
CN
China Literature Ltd
HKEX:772
26.9B HKD
5%
4%
4%
4%
CN
China South Publishing & Media Group Co Ltd
SSE:601098
22.5B CNY
11%
7%
10%
32%
CN
Shandong Publishing & Media Co Ltd
SSE:601019
22.3B CNY
16%
10%
10%
16%
Country UK
Market Cap 8.3B GBP
ROE
9%
ROA
5%
ROCE
9%
ROIC
7%
Country US
Market Cap 16.4B USD
ROE
4%
ROA
2%
ROCE
6%
ROIC
4%
Country US
Market Cap 8.9B USD
ROE
16%
ROA
11%
ROCE
17%
ROIC
13%
Country NO
Market Cap 84.9B NOK
ROE
74%
ROA
53%
ROCE
21%
ROIC
17%
Country SA
Market Cap 19.4B SAR
ROE
14%
ROA
7%
ROCE
12%
ROIC
10%
Country ZA
Market Cap 4.7B Zac
ROE
14%
ROA
11%
ROCE
13%
ROIC
11%
Country CN
Market Cap 28B CNY
ROE
8%
ROA
5%
ROCE
6%
ROIC
11%
Country CN
Market Cap 26.9B CNY
ROE
14%
ROA
8%
ROCE
9%
ROIC
13%
Country CN
Market Cap 26.9B HKD
ROE
5%
ROA
4%
ROCE
4%
ROIC
4%
Country CN
Market Cap 22.5B CNY
ROE
11%
ROA
7%
ROCE
10%
ROIC
32%
Country CN
Market Cap 22.3B CNY
ROE
16%
ROA
10%
ROCE
10%
ROIC
16%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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