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Is this Large Market Cap Stock target price reasonable for Pearson plc (NYSE:PSO)?

The company in question is, Pearson plc (NYSE:PSO) currently with a stock price of 12.71 (-0.23% today). The market cap for Pearson plc is 10362.72, and is in the sector Services, and Publishing РBooks industry. The target price for Pearson plc is 13.8. Currently Pearson plc is trading with a P/E of *TBA, and a forward P/E of 17.31. Average volume for Pearson plc is 375.37 and so far today it is 91269.

Performance in the last year for Pearson plc has been -28.67%. For EPS growth, Pearson plc has seen a growth of -275.70%, and is looking to grow in the next year to -0.27%. More long term stats show that EPS growth has been -21.60% over the last five years and could be -0.70% for the next five years. Pearson plc has seen sales growth quarter over quarter at -18.20%, with EPS growth quarter over quarter at -193.50%. The 20-day simple moving average is 4.12%, with the 200-day simple moving average coming to 6.48%.

Since the IPO date for Pearson plc on the 11/18/1996, Pearson plc has seen performance year to date to be 23.06%. With Pearson plc trading at 12.71, the dividend yield is 7.69%, and the EPS is -0.58.

So could Pearson plc, be undervalued? Well as said before P/E is *TBA. The PEG is *TBA, P/S is 1.74 and the P/B is at 1.21. The P/cash is 4.49, with P/free cash flow at *TBA.

Pearson plc ability to deal with debt shows that the current ratio is 2.1, and the quick ratio is 2. This is with long term debt/equity at 0.32, and total debt/equity at 0.36.

In terms of margins, Pearson plc has a gross margin of 55.70%, an operating margin of -9.00% and a profit margin of 18.40%.Payout ratio for Pearson plc is 51.40%. Return on assets come to 7.40% with return on investment coming to -3.70%.

Insider ownership for Pearson plc, is at 1.90% and institutional ownership comes to 2.10%. Outstanding shares are at 813.4. While shares float is 812.35. The float short is currently 0.11%, and short ratio is 2.41.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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