Pearson plc (PSORF)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Pearson plc (PSORF) trades at $12.65 with AI Score 50/100 (Grade B). Pearson plc is a global education company providing courseware, assessments, and related services. Market cap: $7.60B, Sector: Communication services.
Price live · AI analysis from Mar 16, 2026Analyst Coverage for PSORF: PSORF does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates PSORF against Communication Services peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
PSORF: 5/7 perspectives are bullish. Dominant signal: Seth Klarman bullish.
How is this calculated? →Pearson plc (PSORF) Media & Communications Profile
Pearson plc, a global leader in educational publishing and assessment, delivers courseware, online learning, and testing services across diverse segments. With a focus on digital transformation and workforce skills, Pearson leverages its established brand and extensive content library to serve students, educators, and professionals worldwide, navigating a rapidly evolving education landscape.
What Is the Investment Thesis for PSORF?
Pearson's investment thesis hinges on its ongoing digital transformation and strategic focus on high-growth areas like online learning and workforce skills. The company's established brand, extensive content library, and global reach provide a competitive advantage in a rapidly evolving education market. With a P/E ratio of 21.7 and a dividend yield of 2.47%, Pearson offers a blend of value and income potential. Key catalysts include the continued expansion of its virtual learning segment and the increasing demand for workforce skills training. Potential risks include competition from emerging EdTech companies and the impact of economic downturns on education spending.
Based on FMP financials and quantitative analysis
PSORF Key Highlights
- Market capitalization of $7.60B reflects Pearson's significant presence in the global education market.
- Profit margin of 9.4% indicates healthy profitability and efficient operations.
- Gross margin of 52.0% demonstrates Pearson's ability to maintain pricing power and manage costs effectively.
- Dividend yield of 2.47% provides investors with a steady stream of income.
- Beta of -0.07 suggests that the stock is less volatile than the overall market.
Who Are PSORF's Competitors?
PSORF is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| ATDRF Auto Trader Group plc | $6.66 | +2.90% | $5.26B | 47 |
| ATDRY Auto Trader Group plc | $1.61 | -2.98% | $5.07B | 49 |
| BCEXF BCE Inc. | $10.00 | +0.00% | $9.33B | 52 |
| BECEF BCE Inc. | $11.58 | -23.35% | $10.80B | 53 |
| CEVMF CTS Eventim AG & Co. KGaA | $60.75 | +0.00% | $5.83B | 43 |
| DTRL The Detroit Legal News Company | $280.00 | -8.20% | $10.57M | 61 |
| LEE Lee Enterprises, Incorporated | $9.09 | +4.12% | $55.44M | 56 |
| GWOX The Goodheart-Willcox Company, Inc. | $409.75 | +4.53% | $190.99M | 55 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are PSORF's Key Strengths?
- Strong brand recognition and reputation in the education market.
- Extensive content library and intellectual property assets.
- Global reach and distribution network.
- Diversified product and service offerings across multiple segments.
What Are PSORF's Weaknesses?
- Dependence on traditional publishing models.
- Slow pace of digital transformation in some areas.
- Exposure to cyclical trends in education spending.
- Complexity of managing a large and diverse organization.
What Could Drive PSORF Stock Higher?
- Continued expansion of digital learning platforms and online course offerings.
- Potential partnerships with universities and educational institutions to expand reach.
- Increasing demand for workforce skills training and professional certifications.
- New product launches and technology innovations in the education sector.
What Are the Key Risks for PSORF?
- Competition from emerging EdTech companies and online learning platforms.
- Disruption of traditional publishing models by digital technologies.
- Economic downturns and reduced education spending.
- Changes in government regulations and education policies.
What Are the Growth Opportunities for PSORF?
- Expansion of Virtual Learning Segment: Pearson's Virtual Learning segment, which includes virtual schools and online program management services, is poised for significant growth. The increasing demand for online education, driven by factors such as convenience, flexibility, and accessibility, is fueling the growth of this segment. The global virtual school market is projected to reach $12 billion by 2027. Pearson can capitalize on this trend by expanding its virtual school offerings and partnering with universities to provide online degree programs.
- Focus on Workforce Skills Training: Pearson is strategically focusing on workforce skills training to address the growing skills gap and the increasing demand for skilled workers. The company offers a range of workforce skills programs, including BTEC, GED, TalentLens, Faethm, Pearson college, and apprenticeships. The global workforce training market is estimated to be worth $400 billion annually. Pearson can leverage its expertise in education and assessment to provide high-quality workforce skills training programs that meet the needs of employers and employees.
- Growth in English Language Learning: The English Language Learning (ELL) market is a significant growth opportunity for Pearson. The increasing globalization of business and education is driving the demand for English language proficiency. Pearson offers a range of ELL products and services, including the Pearson Test of English, institutional courseware, and English online solutions. The global ELL market is projected to reach $65 billion by 2028. Pearson can expand its presence in this market by developing innovative ELL products and services that cater to the diverse needs of learners.
- Digital Transformation of Higher Education Courseware: Pearson is actively transforming its higher education courseware business by shifting from print to digital formats. Digital courseware offers several advantages over traditional print textbooks, including interactive learning experiences, personalized feedback, and cost savings. The digital higher education courseware market is projected to reach $15 billion by 2026. Pearson can further accelerate its digital transformation by investing in the development of high-quality digital courseware and online learning platforms.
- Strategic Acquisitions and Partnerships: Pearson can pursue strategic acquisitions and partnerships to expand its product offerings, geographic reach, and market share. The company can acquire complementary businesses in areas such as online learning, workforce skills training, and assessment. Pearson can also partner with universities, corporations, and government agencies to develop and deliver innovative educational solutions. These strategic initiatives can help Pearson to accelerate its growth and strengthen its competitive position.
What Opportunities Does PSORF Have?
- Expansion of online learning and virtual education offerings.
- Growth in workforce skills training and professional certifications.
- Strategic acquisitions and partnerships to expand market reach.
- Development of innovative educational technology solutions.
What Threats Does PSORF Face?
- Competition from emerging EdTech companies and online learning platforms.
- Disruption of traditional publishing models by digital technologies.
- Economic downturns and reduced education spending.
- Changes in government regulations and education policies.
What Are PSORF's Competitive Advantages?
- Established brand reputation and recognition in the education industry.
- Extensive content library and intellectual property.
- Global reach and distribution network.
- Strong relationships with educational institutions and businesses.
What Does PSORF Do?
Founded in 1844, Pearson plc has evolved from a construction business to a leading global education company. Initially involved in building railways and infrastructure, the company transitioned to publishing in the 20th century, acquiring prominent publishing houses like Longman. Today, Pearson provides a range of educational materials, technologies, assessments, and related services to learners, educators, and institutions worldwide. The company operates through five key segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Higher Education, and Workforce Skills. Its offerings include digital courseware, online learning platforms, and professional certifications. Pearson's geographic reach spans the United Kingdom, the United States, Canada, the Asia Pacific region, and other European countries. The company aims to improve learning outcomes and employability through innovative educational solutions.
What Products and Services Does PSORF Offer?
- Provides educational courseware across various subjects.
- Offers assessment and qualification services, including standardized tests.
- Delivers virtual learning solutions through online schools and programs.
- Provides English language learning resources and testing.
- Offers higher education courseware and digital learning platforms.
- Provides workforce skills training and certification programs.
- Develops and distributes educational technology solutions.
How Does PSORF Make Money?
- Generates revenue through the sale of educational courseware and digital learning resources.
- Earns fees from assessment and qualification services, such as standardized tests and professional certifications.
- Receives tuition fees from virtual schools and online programs.
- Derives income from licensing its content and technology to educational institutions and businesses.
What Industry Does PSORF Operate In?
Pearson operates in the global education market, which is undergoing significant transformation driven by technological advancements and changing learner needs. The industry is characterized by increasing demand for online learning, personalized education, and workforce skills training. Pearson competes with traditional publishers, EdTech companies, and online learning platforms. The company's established brand, extensive content library, and global reach provide a competitive advantage in this dynamic landscape. The global e-learning market is projected to reach $325 billion by 2025, presenting significant growth opportunities for Pearson.
Who Are PSORF's Key Customers?
- Students in primary, secondary, and higher education.
- Educational institutions, including schools, colleges, and universities.
- Businesses and organizations seeking workforce skills training for their employees.
- Individuals seeking professional certifications and qualifications.
FY2026 estForward Outlook
Wall Street analysts project Pearson plc revenue of about $3.69B for fiscal 2026, with EPS near $0.70. The estimate reflects 10 contributing analysts.
F-Score 7/9Financial Health
Pearson plc's Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 3.38 places it in the safe zone, indicating low near-term bankruptcy risk.
ROE 9%Key Financial Metrics
Return on equity for Pearson plc stands at 9.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 5.2%, showing how much profit it generates from its asset base. PSORF trades at a trailing price-to-earnings ratio of 21.75, above the Communication Services sector average of ~18x. Its free cash flow yield is 8.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.00 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 4.3%, the inverse of the P/E and a quick read on earnings relative to price.
Pearson plc (PSORF) Valuation Context
Valued at $7.60B, PSORF is classified as a mid-cap stock. Relative to its peer group, PSORF's quantitative score of 50/100 is roughly in line with the peer average of 49/100.
Company Profile
Pearson plc operates in the Publishing industry within the Communication Services sector. It is headquartered in London, GB. The company is led by CEO Omar Paul Abbosh. PSORF has traded publicly since 2012.
PSORF Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Strong brand recognition and reputation in the education market.
- Extensive content library and intellectual property assets.
- Global reach and distribution network.
- Diversified product and service offerings across multiple segments.
Bear Case
- Dependence on traditional publishing models.
- Slow pace of digital transformation in some areas.
- Exposure to cyclical trends in education spending.
- Complexity of managing a large and diverse organization.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · July 2026
PSORF Latest News
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Entry-Level Work Remains Essential: 94% of HR Leaders Expect AI to Create New Entry-Level Roles, Cognizant and Pearson Study Reveals
Yahoo! Finance: PSORF News · Jun 18, 2026
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Pearson Crowns Certiport 2026 Microsoft Office Specialist U.S. National Champions
Yahoo! Finance: PSORF News · Jun 17, 2026
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Pearson Names Certiport 2026 Adobe Certified Professional U.S. National Champion
Yahoo! Finance: PSORF News · Jun 17, 2026
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North Carolina teachers named 2026 CERTIFIED Educators of the Year
Yahoo! Finance: PSORF News · Jun 17, 2026
PSORF Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for PSORF.
Price Targets
Wall Street price target analysis for PSORF.
PSORF MoonshotScore
What does this score mean?
The MoonshotScore rates PSORF's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
Entry-Level Work Remains Essential: 94% of HR Leaders Expect AI to Create New Entry-Level Roles, Cognizant and Pearson Study Reveals
Pearson Crowns Certiport 2026 Microsoft Office Specialist U.S. National Champions
Pearson Names Certiport 2026 Adobe Certified Professional U.S. National Champion
North Carolina teachers named 2026 CERTIFIED Educators of the Year
Leadership: Omar Paul Abbosh
Chief Executive Officer
Omar Paul Abbosh is the Chief Executive Officer of Pearson plc. Prior to joining Pearson, Abbosh held various leadership positions at Accenture, including Chief Strategy Officer and Group Chief Executive of Communications, Media & Technology. He has extensive experience in digital transformation, technology strategy, and business operations. Abbosh holds a degree in Electrical and Electronic Engineering from Imperial College London.
Track Record: Since becoming CEO, Omar Paul Abbosh has focused on accelerating Pearson's digital transformation, streamlining its operations, and expanding its presence in high-growth markets. He has overseen the launch of new digital learning platforms and the acquisition of key businesses in the workforce skills training sector. Abbosh's leadership has been instrumental in driving Pearson's strategic shift towards becoming a digital-first education company.
PSORF OTC Market Information
The OTC Other tier represents the lowest tier of the OTC market, indicating that Pearson plc (PSORF) may not meet the minimum financial standards required for higher tiers like OTCQX or OTCQB. Companies in this tier may have limited financial disclosure, be experiencing financial distress, or be newly formed. Investing in OTC Other stocks carries significantly higher risk compared to stocks listed on major exchanges like the NYSE or NASDAQ due to the lack of regulatory oversight and transparency.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited Financial Disclosure: The lack of comprehensive financial reporting increases the difficulty of assessing Pearson's true financial health and performance.
- Lower Liquidity: Reduced trading volume and wider bid-ask spreads can make it challenging to buy or sell shares efficiently.
- Increased Price Volatility: The OTC market is generally more susceptible to price swings due to lower trading volumes and potential manipulation.
- Regulatory Scrutiny: OTC-listed companies are subject to less regulatory oversight compared to exchange-listed companies, increasing the risk of fraud or mismanagement.
- Information Asymmetry: Limited information availability can create an uneven playing field for investors, making it difficult to make informed decisions.
- Verify the company's registration and legal standing.
- Thoroughly review any available financial statements and disclosures.
- Assess the company's management team and their track record.
- Understand the company's business model and competitive landscape.
- Evaluate the company's OTC tier and disclosure status.
- Monitor trading volume and price volatility.
- Consult with a qualified financial advisor.
- Established Operating History: Pearson has a long history as a global education company.
- Recognizable Brand: Pearson is a well-known and respected brand in the education industry.
- Regulatory Filings: Review any available regulatory filings to assess the company's compliance with applicable laws and regulations.
- Independent Audits: Look for evidence of independent audits of the company's financial statements.
- Publicly Available Information: Search for news articles, press releases, and other publicly available information about the company.
PSORF Communication Services Stock FAQ
What does Pearson plc do?
Pearson plc is a global education company that provides a wide range of educational materials, technologies, assessments, and related services. The company operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Higher Education, and Workforce Skills. Pearson's products and services are used by students, educators, and institutions worldwide to improve learning outcomes and employability. The company is focused on digital transformation and expanding its presence in high-growth markets such as online learning and workforce skills training.
What are the main risks for PSORF?
Pearson faces several risks, including competition from emerging EdTech companies and online learning platforms, disruption of traditional publishing models by digital technologies, economic downturns and reduced education spending, and changes in government regulations and education policies. The company's success depends on its ability to adapt to these challenges and maintain its competitive position in the education industry. Investors should carefully consider these risks before investing in PSORF.
What are the key factors to evaluate for PSORF?
Pearson plc (PSORF) holds an AI score of 50/100 (moderate). P/E: 21.7x vs the S&P 500's ~20-25x. Not financial advice.
How frequently does PSORF data refresh on this page?
PSORF prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven PSORF's recent stock price performance?
Pearson plc (PSORF) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strong brand recognition and reputation in the education market. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider PSORF overvalued or undervalued right now?
Pearson plc (PSORF) trades at 21.7x earnings. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying PSORF?
Before investing in Pearson plc (PSORF), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Why might investors consider adding PSORF to a portfolio?
Key strength of Pearson plc (PSORF): Strong brand recognition and reputation in the education market. Weigh rewards against risks and diversify. Not financial advice.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Financial data and market projections are based on available information and industry estimates.
- OTC market data may be limited and subject to inaccuracies.