Pearson (PSO) Stock Analysis

November 11, 2026

This is a peer-relative look at Pearson (PSO): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Consumer Services peers, so every number reads in context rather than in isolation.

Company Profile

Pearson (PSO) trades as an ADR rather than ordinary local shares — read it with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile fields for Pearson (PSO)
Profile Item	PSO
Name	Pearson plc Sponsored ADR
Country/Region	United Kingdom
GICS Sector	Consumer Discretionary
GICS Industry Group	Consumer Services
GICS Industry	Diversified Consumer Services
GICS Sub-Industry	Education Services
Market Capitalization	10.38 billion USD
Currency	USD
Exchange	NYSE
Listing Date	November 18, 1996
Security Type	ADR

Price Performance

Cumulative Growth

PSO

GSPC

Pearson (PSO) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Pearson (PSO) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Pearson (PSO) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Pearson (PSO) metric values compared with Consumer Services industry-group medians
Metric	Current stock: PSO	Industry group median
Total Return (1Y)	34.42%	2.96%
Total Return (3Y, Annualized)	15.38%	9.94%
Total Return (5Y, Annualized)	17.99%	1.66%

Risk Profile

Drawdown History

PSO

GSPC

Pearson (PSO) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Pearson (PSO) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Pearson (PSO) metric values compared with Consumer Services industry-group medians
Metric	Current stock: PSO	Industry group median
Volatility (1Y, Annualized)	25.07%	42.89%
Beta (5Y)	0.43	1.05
Max Drawdown (5Y)	-30.73%	-59.81%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. PSO is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Pearson (PSO) metric values compared with Consumer Services industry-group medians
Metric	Current stock: PSO	Industry group median
Sharpe Ratio (1Y)	1.20	-0.04
Sortino Ratio (1Y)	1.67	-0.08

Profitability

ROE (TTM)

Pearson (PSO) posts ROE of 9.16%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

PSO

Consumer Services industry group

9.16%

Group distribution

Max: 76.75%
Q3: 34.07%
Median: 15.90%
PSO: 9.16%
Q1: 3.23%
Min: -40.61%

Largest peers

RCL: 41.29%
ABNB: 35.79%
PSO: 9.16%
MCD: --
SBUX: --
BKNG: --
MAR: --

Where Pearson (PSO) stands on ROE within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Pearson (PSO) keeps 8.78% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

PSO

Consumer Services industry group

8.78%

Group distribution

Max: 25.52%
Q3: 12.95%
PSO: 8.78%
Median: 6.63%
Q1: 1.46%
Min: -14.36%

Largest peers

MAR: 35.00%
MCD: 32.38%
BKNG: 25.52%
RCL: 23.79%
ABNB: 23.02%
PSO: 8.78%
SBUX: 6.67%

Where Pearson (PSO) stands on net margin within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Pearson (PSO) turns 13.32% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

PSO

Consumer Services industry group

13.32%

Group distribution

Max: 49.05%
Q3: 24.35%
Median: 14.23%
PSO: 13.32%
Q1: 5.67%
Min: -16.47%

Largest peers

MAR: 66.18%
MCD: 48.29%
ABNB: 41.51%
BKNG: 38.69%
RCL: 33.61%
PSO: 13.32%
SBUX: 12.76%

Where Pearson (PSO) stands on operating margin within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Pearson (PSO) metric values compared with Consumer Services industry-group medians
Metric	Current stock: PSO	Industry group median
ROE (TTM)	9.16%	15.90%
ROA (TTM)	5.09%	5.29%
Net Margin (TTM)	8.78%	6.63%
Operating Margin (TTM)	13.32%	14.23%
Gross Margin (TTM)	52.04%	44.51%

Growth

Revenue Growth

Pearson (PSO) grew revenue 0.70%, in the lower peer quartile. The top line is expanding more slowly than at most peers, which can reflect softer demand, lost share, or weaker pricing.

Pearson (PSO): Revenue Growth across different time periods, set against Consumer Services industry-group medians.

EPS Growth

Pearson (PSO) grew earnings per share -20.16%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

Pearson (PSO): EPS Growth across different time periods, set against Consumer Services industry-group medians.

Growth Metrics

Pearson (PSO) metric values compared with Consumer Services industry-group medians
Metric	Current stock: PSO	Industry group median
Revenue Growth (YoY)	0.70%	6.55%
Revenue Growth (3Y CAGR)	-2.35%	10.51%
EPS Growth (YoY)	-20.16%	10.50%
EPS Growth (3Y CAGR)	15.86%	14.33%

Financial Strength

Current Ratio (MRQ)

Pearson (PSO) has current ratio of 2.00, above the industry’s typical middle range. Liquidity looks ample versus peers, though an unusually high cushion can also mean idle current assets or inefficient working capital.

PSO

Consumer Services industry group

2.00

Group distribution

Max: 3.41
PSO: 2.00
Q3: 1.85
Median: 1.06
Q1: 0.72
Min: 0.22

Largest peers

PSO: 2.00
ABNB: 1.73
BKNG: 1.12
SBUX: 0.76
MAR: 0.53
RCL: 0.22
MCD: --

Where Pearson (PSO) stands on current ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Pearson (PSO) has debt-to-equity ratio of 0.52, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

PSO

Consumer Services industry group

0.52

Group distribution

Max: 6.12
Q3: 2.93
Median: 1.29
PSO: 0.52
Q1: 0.37
Min: 0.01

Largest peers

RCL: 1.94
PSO: 0.52
ABNB: 0.27
MCD: --
SBUX: --
BKNG: --
MAR: --

Where Pearson (PSO) stands on debt-to-equity ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Pearson (PSO) metric values compared with Consumer Services industry-group medians
Metric	Current stock: PSO	Industry group median
Current Ratio (MRQ)	2.00	1.06
Debt / Equity (MRQ)	0.52	1.29
Net Debt / EBITDA	2.35	3.12

Dividends

Dividend Yield (TTM)

Pearson (PSO) has dividend yield of 1.46%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

PSO

Consumer Services industry group

1.46%

Group distribution

Max: 4.10%
Q3: 1.82%
PSO: 1.46%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

MCD: 2.68%
SBUX: 2.35%
RCL: 1.70%
PSO: 1.46%
BKNG: 0.98%
MAR: 0.67%
ABNB: 0.00%

Where Pearson (PSO) stands on dividend yield within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Pearson (PSO) has payout ratio of 51.09%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

PSO

Consumer Services industry group

51.09%

Group distribution

Max: 89.80%
PSO: 51.09%
Q3: 36.83%
Median: 0.00%
Q1: 0.00%
Min: 0.00%

Largest peers

SBUX: 142.77%
MCD: 58.86%
PSO: 51.09%
RCL: 32.54%
MAR: 27.92%
BKNG: 17.84%
ABNB: 0.00%

Where Pearson (PSO) stands on payout ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Pearson (PSO) metric values compared with Consumer Services industry-group medians
Metric	Current stock: PSO	Industry group median
Dividend Yield (TTM)	1.46%	0.00%
Dividend Payout Ratio (TTM)	51.09%	0.00%

Valuation

P/E Ratio (TTM)

Pearson (PSO) trades at P/E ratio of 25.78, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

PSO

Consumer Services industry group

25.78

Group distribution

Max: 71.70
Q3: 37.12
PSO: 25.78
Median: 21.88
Q1: 13.00
Min: 5.72

Largest peers

SBUX: 47.70
MAR: 41.52
ABNB: 35.65
PSO: 25.78
MCD: 21.88
RCL: 19.36
BKNG: 17.43

Where Pearson (PSO) stands on P/E ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Pearson (PSO) trades at 2.86 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

PSO

Consumer Services industry group

2.86

Group distribution

Max: 6.40
Q3: 3.01
PSO: 2.86
Median: 1.54
Q1: 0.74
Min: 0.08

Largest peers

MAR: 14.15
ABNB: 8.14
MCD: 7.02
RCL: 4.57
BKNG: 4.25
SBUX: 3.17
PSO: 2.86

Where Pearson (PSO) stands on P/S ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Pearson (PSO) trades at 2.38 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

PSO

Consumer Services industry group

2.38

Group distribution

Max: 12.02
Q3: 5.58
PSO: 2.38
Median: 2.37
Q1: 1.09
Min: -4.51

Largest peers

ABNB: 12.02
RCL: 7.47
PSO: 2.38
BKNG: -11.52
SBUX: -15.67
MAR: -21.17
MCD: -191.23

Where Pearson (PSO) stands on P/B ratio within its Consumer Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Pearson (PSO) metric values compared with Consumer Services industry-group medians
Metric	Current stock: PSO	Industry group median
P/E Ratio (TTM)	25.78	21.88
P/S Ratio (TTM)	2.86	1.54
P/B Ratio (MRQ)	2.38	2.37
Free Cash Flow Yield (TTM)	8.08%	4.54%