Financials Pearson CINNOBER BOAT

Equities

PSON

GB0006776081

Consumer Publishing

Real-time Estimate Tradegate Other stock markets 11:28:56 2024-06-26 EDT			5-day change	1st Jan Change
11.54 ^EUR	0.00%		0.00%	0.00%

06-20	UBS raises Landsec; Berenberg cuts SSP	AN
06-06	Tech Firms Lead European Equities Traded in the US as American Depositary Receipts Higher in Thursday Trading	MT

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	4,961	5,102	4,620	6,707	6,717	6,523	-	-
Enterprise Value (EV) ¹	5,977	5,656	5,117	7,264	5,973	7,188	7,111	7,100
P/E ratio	18.7 x	16.6 x	29.3 x	28.8 x	18.3 x	17 x	14.9 x	13.7 x
Yield	3.06%	2.87%	3.34%	2.29%	2.35%	2.45%	2.72%	2.96%
Capitalization / Revenue	1.28 x	1.5 x	1.35 x	1.75 x	1.83 x	1.78 x	1.7 x	1.63 x
EV / Revenue	1.54 x	1.66 x	1.49 x	1.89 x	1.63 x	1.96 x	1.86 x	1.78 x
EV / EBITDA	6.16 x	8.98 x	6.9 x	10.2 x	7.62 x	8.75 x	8.23 x	7.8 x
EV / FCF	34 x	22.2 x	19.5 x	33.9 x	15 x	16 x	14.7 x	13.5 x
FCF Yield	2.94%	4.51%	5.12%	2.95%	6.68%	6.24%	6.8%	7.39%
Price to Book	1.15 x	1.24 x	1.08 x	1.57 x	1.73 x	1.7 x	1.61 x	1.52 x
Nbr of stocks (in thousands)	778,873	749,842	753,360	714,131	696,669	667,261	-	-
Reference price ²	6.370	6.804	6.132	9.392	9.642	9.776	9.776	9.776
Announcement Date	2/21/20	3/8/21	2/25/22	3/3/23	3/1/24	-	-	-

¹GBP in Million²GBP

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	3,869	3,397	3,428	3,841	3,674	3,660	3,829	3,997
EBITDA ¹	970	630	742	715	784	821.3	864.2	910.4
EBIT ¹	581	313	385	456	573	614.5	661.6	709.8
Operating Margin	15.02%	9.21%	11.23%	11.87%	15.6%	16.79%	17.28%	17.76%
Earnings before Tax (EBT) ¹	232	354	157	323	493	536.2	592.1	650
Net income ¹	264	310	160	242	378	387.5	426.7	461.3
Net margin	6.82%	9.13%	4.67%	6.3%	10.29%	10.59%	11.14%	11.54%
EPS ²	0.3400	0.4100	0.2090	0.3260	0.5270	0.5759	0.6547	0.7133
Free Cash Flow ¹	176	255	262	214	399	448.7	483.7	524.3
FCF margin	4.55%	7.51%	7.64%	5.57%	10.86%	12.26%	12.63%	13.12%
FCF Conversion (EBITDA)	18.14%	40.48%	35.31%	29.93%	50.89%	54.63%	55.97%	57.59%
FCF Conversion (Net income)	66.67%	82.26%	163.75%	88.43%	105.56%	115.77%	113.34%	113.65%
Dividend per Share ²	0.1950	0.1950	0.2050	0.2150	0.2270	0.2398	0.2664	0.2894
Announcement Date	2/21/20	3/8/21	2/25/22	3/3/23	3/1/24	-	-	-

¹GBP in Million²GBP

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2019 S2	2020 S1	2021 S1	2021 S2	2022 S1	2022 S2	2023 S1	2023 S2	2024 S1	2024 S2
Net sales ¹	2,040	1,492	1,597	1,831	1,788	2,053	1,879	1,795	1,778	1,887
EBITDA	-	-	-	-	202	-	-	-	-	-
EBIT	-	-	127	-	160	-	-	-	-	-
Operating Margin	-	-	7.95%	-	8.95%	-	-	-	-	-
Earnings before Tax (EBT)	-	-	-	-	-	-	-	-	-	-
Net income	-	-	-	-	-	-	-	-	-	-
Net margin	-	-	-	-	-	-	-	-	-	-
EPS	-	-	-	-	-	-	-	-	-	-
Dividend per Share	-	-	-	0.1420	0.0660	-	-	-	-	-
Announcement Date	2/21/20	7/24/20	7/30/21	2/25/22	8/1/22	3/3/23	7/31/23	3/1/24	-	-

¹GBP in Million

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	1,016	554	497	557	-	665	588	577
Net Cash position ¹	-	-	-	-	744	-	-	-
Leverage (Debt/EBITDA)	1.047 x	0.8794 x	0.6698 x	0.779 x	-	0.8096 x	0.6799 x	0.6334 x
Free Cash Flow ¹	176	255	262	214	399	449	484	524
ROE (net income / shareholders' equity)	10.2%	7.35%	3.81%	5.58%	9.89%	10.4%	11.1%	11.5%
ROA (Net income/ Total Assets)	3.39%	4.11%	2.16%	3.3%	5.89%	5.91%	6.43%	6.88%
Assets ¹	7,778	7,550	7,397	7,326	6,415	6,557	6,639	6,707
Book Value Per Share ²	5.540	5.480	5.650	5.960	5.590	5.750	6.070	6.430
Cash Flow per Share ²	0.4700	0.5100	0.4300	0.4900	0.7300	0.8800	1.010	1.050
Capex ¹	193	134	176	147	126	158	167	175
Capex / Sales	4.99%	3.94%	5.13%	3.83%	3.43%	4.3%	4.36%	4.38%
Announcement Date	2/21/20	3/8/21	2/25/22	3/3/23	3/1/24	-	-	-

¹GBP in Million²GBP

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Pearson

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

9.776 GBP

Average target price

11.32 GBP

Spread / Average Target

+15.81%

Consensus

EPS Revisions

Estimates Revisions

Quarterly revenue - Rate of surprise

Company calendar

Sector Other Consumer Publishing

	1st Jan change	Capi.
SCHIBSTED ASA	+6.36%	6.62B
SAUDI RESEARCH AND MEDIA GROUP	+21.00%	4.58B
JIANGSU PHOENIX PUBLISHING & MEDIA CORPORATION LIMITED	+26.56%	3.89B
CHINA SOUTH PUBLISHING & MEDIA GROUP CO., LTD	+24.58%	3.11B
KADOKAWA CORPORATION	-2.32%	2.4B
TX GROUP AG	+36.92%	1.97B
SOUTHERN PUBLISHING AND MEDIA CO.,LTD.	-3.77%	1.43B
CHANGJIANG PUBLISHING & MEDIA CO.,LTD	+8.32%	1.3B
SANOMA OYJ	-6.62%	1.14B

Other Consumer Publishing