Financials Pearson CINNOBER BOAT

Equities

PSON

GB0006776081

Consumer Publishing

Real-time Estimate Tradegate Other stock markets 10:22:23 2024-07-11 am EDT			5-day change	1st Jan Change
11.98 ^EUR	0.00%		0.00%	0.00%

Jul. 05	Jefferies cuts Softcat to 'underperform'	AN
Jul. 04	Smith & Nephew shares soar as activist Cevian builds stake	RE

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	4,961	5,102	4,620	6,707	6,717	6,716	-	-
Enterprise Value (EV) ¹	5,977	5,656	5,117	7,264	5,973	7,440	7,327	7,264
P/E ratio	18.7 x	16.6 x	29.3 x	28.8 x	18.3 x	17.3 x	15.2 x	13.8 x
Yield	3.06%	2.87%	3.34%	2.29%	2.35%	2.38%	2.64%	2.87%
Capitalization / Revenue	1.28 x	1.5 x	1.35 x	1.75 x	1.83 x	1.84 x	1.76 x	1.68 x
EV / Revenue	1.54 x	1.66 x	1.49 x	1.89 x	1.63 x	2.04 x	1.92 x	1.82 x
EV / EBITDA	6.16 x	8.98 x	6.9 x	10.2 x	7.62 x	9.04 x	8.45 x	7.95 x
EV / FCF	34 x	22.2 x	19.5 x	33.9 x	15 x	16.6 x	15.2 x	13.9 x
FCF Yield	2.94%	4.51%	5.12%	2.95%	6.68%	6.03%	6.59%	7.21%
Price to Book	1.15 x	1.24 x	1.08 x	1.57 x	1.73 x	1.75 x	1.65 x	1.56 x
Nbr of stocks (in thousands)	778,873	749,842	753,360	714,131	696,669	666,648	-	-
Reference price ²	6.370	6.804	6.132	9.392	9.642	10.08	10.08	10.08
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	3,656	3,823	3,996
EBITDA ¹	970	630	742	715	784	823.5	867.2	914.3
EBIT ¹	581	313	385	456	573	613.4	660.6	709.5
Operating Margin	15.02%	9.21%	11.23%	11.87%	15.6%	16.78%	17.28%	17.75%
Earnings before Tax (EBT) ¹	232	354	157	323	493	544.7	601.2	668.9
Net income ¹	264	310	160	242	378	394.3	434	473.8
Net margin	6.82%	9.13%	4.67%	6.3%	10.29%	10.79%	11.35%	11.86%
EPS ²	0.3400	0.4100	0.2090	0.3260	0.5270	0.5825	0.6638	0.7297
Free Cash Flow ¹	176	255	262	214	399	448.7	483	524
FCF margin	4.55%	7.51%	7.64%	5.57%	10.86%	12.27%	12.63%	13.11%
FCF Conversion (EBITDA)	18.14%	40.48%	35.31%	29.93%	50.89%	54.48%	55.7%	57.31%
FCF Conversion (Net income)	66.67%	82.26%	163.75%	88.43%	105.56%	113.79%	111.29%	110.59%
Dividend per Share ²	0.1950	0.1950	0.2050	0.2150	0.2270	0.2399	0.2657	0.2887
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	1,776	1,887
EBITDA	-	-	-	-	202	-	-	-	-	-
EBIT ¹	-	-	127	-	160	-	-	-	240	-
Operating Margin	-	-	7.95%	-	8.95%	-	-	-	13.51%	-
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	-	724	611	548
Net Cash position ¹	-	-	-	-	744	-	-	-
Leverage (Debt/EBITDA)	1.047 x	0.8794 x	0.6698 x	0.779 x	-	0.8789 x	0.7041 x	0.5992 x
Free Cash Flow ¹	176	255	262	214	399	449	483	524
ROE (net income / shareholders' equity)	10.2%	7.35%	3.81%	5.58%	9.89%	10.5%	11.2%	11.6%
ROA (Net income/ Total Assets)	3.39%	4.11%	2.16%	3.3%	5.89%	6.1%	6.59%	7.11%
Assets ¹	7,778	7,550	7,397	7,326	6,415	6,463	6,583	6,661
Book Value Per Share ²	5.540	5.480	5.650	5.960	5.590	5.750	6.090	6.480
Cash Flow per Share ²	0.4700	0.5100	0.4300	0.4900	0.7300	0.8900	0.9800	1.040
Capex ¹	193	134	176	147	126	167	172	180
Capex / Sales	4.99%	3.94%	5.13%	3.83%	3.43%	4.56%	4.5%	4.52%
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

10.08 GBP

Average target price

11.36 GBP

Spread / Average Target

+12.75%

Consensus

EPS Revisions

Estimates Revisions

Quarterly revenue - Rate of surprise

Company calendar

Sector Other Consumer Publishing

	1st Jan change	Capi.
SCHIBSTED ASA	+11.21%	6.96B
SAUDI RESEARCH AND MEDIA GROUP	+36.76%	4.89B
JIANGSU PHOENIX PUBLISHING & MEDIA CORPORATION LIMITED	+23.84%	3.82B
LAGARDÈRE S.A.	+20.78%	3.35B
CHINA SOUTH PUBLISHING & MEDIA GROUP CO., LTD	+21.73%	3.06B
KADOKAWA CORPORATION	-1.57%	2.33B
SOUTHERN PUBLISHING AND MEDIA CO.,LTD.	-9.78%	1.42B
CHANGJIANG PUBLISHING & MEDIA CO.,LTD	+10.87%	1.38B
SANOMA OYJ	-7.63%	1.12B

Other Consumer Publishing