$15.95+14% 1Y

RyuScore

Seven criteria, each scored 0 to 100 on a published scale, weighted into one number.

RyuScore 62 out of 100, Above average
Today's price. Only valuation depends on it.

Above average. Pearson plc scores higher than 70% of the 1,794 companies Ryufin scores.

Carried by capital allocation and return on new capital, held back by valuation and cycle position.

Communication Services median 55 · all companies 50

Valuation

26% of the score, 32% here after data gaps

37median 13

Pearson plc is valued at 18.8x its operating profit before acquisition amortisation (EBITA), including debt: a rich multiple.

25x
20x
15x
10x
6x
18.8x
Full points at 6x or less, none from 25xfull points

Return on capital

Taken out: its 18% is shared by the others

n/ano data

Fewer than three years of operating profit and capital on file.

Return on new capital

16% of the score, 20% here after data gaps

83median 49

For every dollar of operating profit earned over 6 years, yearly profit grew by 9 cents.

-5%
12%
9.2%
None at minus 5 cents, full points from 12 centsfull points

Capital allocation

14% of the score, 17% here after data gaps

98median 64

How management spends the money: shares bought back or issued, and whether assets grow faster than the business they serve.

Share countDown 2.7% a year over 6 years: buybacks
96
5%
-3%
-2.7%
0 pointsfull points
Assets against salesAssets grew -2.8% a year, sales 1%
100
12%
-2%
-3.9%
0 pointsfull points

Cycle position

12% of the score, 15% here after data gaps

39median 62

Today's operating margin of 14% is 1.33x its normal 11%: above its usual level. Normal is half the 10 year median, half the last four years, so a margin that has held is not taken for a peak.

2x
1.5x
1x
0.7x
1.3x
A trough earns points, a peak costs themfull points
Operating margin by year, against its normal level
10 years agonow 14%

Balance sheet

8% of the score, 10% here after data gaps

46median 50

What the debt weighs against the profit that has to carry it.

Net debt to EBITDA2.2x a year of EBITDA
58
4.5x
0.5x
2.2x
0 pointsfull points
Interest coverOperating profit covers interest 5x
35
1.5x
12x
5.2x
0 pointsfull points

Earnings quality

6% of the score, 7% here after data gaps

92median 90

Whether the reported profit arrives as cash, and whether the accounts show the usual signs of stretching.

Cash against profitOperating cash flow was 1.58x profit over 3 years
100
0.7x
1x
1.3x
1.6x
0 pointsfull points
AccrualsCash ran ahead of profit by 4.8% of assets
84
8%
0%
-8%
-4.8%
0 pointsfull points

How the RyuScore works

Each criterion earns 0 to 100 points on the scale drawn under it, and the RyuScore is their average weighted 26, 18, 16, 14, 12, 8 and 6. Scales bend in the company's favour between their ends, so an ordinary figure is never already near zero. For PSO, return on capital could not be measured from the filings, so it is taken out and the remaining weights scale up.

Built from the company's annual and quarterly filings with the SEC and today's share price. Banks, insurers and property trusts are not scored: their debt is their raw material, so these yardsticks mean something else there. Figures as of 2025-12-31, latest annual report FY2025.