Pearson

PSON.L

Publishing · Communication Services

Exchange

London Stock Exchange

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Mixed

Cash Flow

Exceptional

Stability

Strong

Valuation

Strong

Dividends

Strong

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Winston Score History

The full picture

Pearson is a British education company that makes textbooks, online courses, and learning software used by students and teachers around the world. Its main products include digital learning platforms, standardized tests, and academic content sold to schools, universities, and individual learners. Pearson is one of the largest education publishers in the world and owns well-known testing programs like GED and Pearson VUE.

Pearson makes money by selling digital subscriptions, courseware licenses, and test-taking services, with a growing push away from print books toward recurring digital revenue. It operates globally but earns most of its revenue in North America and the UK, with a market cap of around $6.8 billion. Its large library of educational content and its role as a trusted testing provider give it some competitive staying power, but the rise of free online learning tools and AI-powered tutoring platforms poses a real long-term threat to its core business.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+3.3% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-4.0% YoY

YoY Growth Rate

Earnings declining

Insider Activity

0.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

£650M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Pearson is growing revenue at 3% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

51.2%

Healthy — 51.2% gross margin

Profit after running costs

Operating Margin

14.2%

Healthy — 14.2% operating margin

Return on the money invested

ROCE

11.4%

Below par — 11.4% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+3.2%

Slow sales growth (+3.2% YoY)

Profit growth

EPS YoY

-23.9%

Earnings shrinking (-23.9% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

259%

Turns 259% of profit into real cash

Spare cash per sale

FCF Margin

21.6%

Converts sales into free cash efficiently (21.6%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

0.39

Conservative — low debt load (0.39)

Covers its interest

Interest Cover

4.22x

Adequate interest coverage (4.2x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

23.1x

no trend

Growth-priced — P/E 23.1

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+7.8

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (23.1 → 15.3)

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Dividends

Dividend

Dividend Yield

2.11%

no trend

Moderate income — 2.11% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record

Dividend Growth

+11.3%

no trend

Dividend growing fast (11.3% YoY)

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