Is the business good?
How good a business is PSO?
Pearson plc earns 8.3% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
8.3%
Return on invested capital · cost of capital 9.0% · 0.75 points below what the capital costs: growth destroys value
- Operating margin
- 14%
Operating margin · Communication Services median 12% · fiscal year to FY2025
- Share count, year on year
- −3.5%
Share count, year on year · bought back, each share owns more of the company
- R&D as % of revenue
- 0.22%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 12% |
| FY2021 | 5.3% |
| FY2022 | 7.1% |
| FY2023 | 14% |
| FY2024 | 15% |
| FY2025 | 14% |
Details›
- Gross marginfiscal year to FY2025
- 52%
- Operating marginfiscal year to FY2025
- 14%
- Net marginfiscal year to FY2025
- 9.4%
- R&D as % of revenue
- 0.22%
- Revenue, trailing twelve months
- $3.58B
- Net income, trailing twelve months
- $335M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.3%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Communication Services
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