Is PEARSON PLC (PSO) Halal?

NYSE Communication Services United Kingdom $7.8B
✓ HALAL
Confidence: 83/100
PEARSON PLC (PSO) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 17.9% against the AAOIFI threshold of 30%, PEARSON PLC comfortably passes the key financial ratio tests. The company operates in the Communication Services sector (Publishing), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 17.9%
/ 30%
4.0%
/ 30%
13.1%
/ 30%
N/A ✓ HALAL
DJIM 17.9%
/ 33%
4.0%
/ 33%
13.1%
/ 33%
N/A ✓ HALAL
MSCI 22.9%
/ 33%
5.2%
/ 33%
16.8%
/ 33%
N/A ✓ HALAL
S&P 17.9%
/ 33%
4.0%
/ 33%
13.1%
/ 33%
N/A ✓ HALAL
FTSE 22.9%
/ 33%
5.2%
/ 33%
16.8%
/ 50%
N/A ✓ HALAL

Financial Highlights

P/E Ratio
18.5
Forward: 12.1
EPS
$0.68
Dividend Yield
271.0%
Payout: 49.1%
P/B Ratio
1.7
EV/EBITDA
15.6
EV: $9.2B
Revenue
$3.6B
Growth: 3.2%
Beta
-0.1
Low volatility
Current Ratio
2.0

Profitability

Gross Margin 52.0%
Operating Margin 14.0%
Net Margin 9.4%
Return on Equity (ROE) 8.7%
Return on Assets (ROA) 4.7%

Cash Flow & Balance Sheet

Operating Cash Flow$656M
Free Cash Flow$522M
Total Debt$1.5B
Debt-to-Equity40.5
Current Ratio2.0
Total Assets$6.5B

Price & Trading

Last Close$12.76
50-Day MA$12.79
200-Day MA$13.81
Avg Volume1.1M
Beta-0.1
52-Week Range
$12.02
$16.67

About PEARSON PLC (PSO)

CEO
Mr. Omar Paul Abbosh
Employees
13,665
Sector
Communication Services
Industry
Publishing
Country
United Kingdom
Exchange
NYSE
Market Cap
$7.8B
Currency
USD

Pearson plc provides educational courseware, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, other European countries, and internationally. It operates through five segments: Assessment & Qualifications, Virtual Learning, English Language Learning, Enterprise Learning & Skills, and Higher Education. The Assessment & Qualifications segment offers pearson professional assessments, US student assessment, clinical assessment, UK GCSE, and A levels and international academic qualifications and associated courseware, including the English-speaking Canadian and Australian K-12 businesses, and PDR. The Virtual Learning segment provides virtual schools and online program management. The English Language Learning segment offers Pearson test of English, institutional courseware, and English online solutions. The Enterprise Learning & Skills segment provides vocational qualifications, GED, TalentLens, Faethm, Credly, Pearson College, and Enterprise content and training. The Higher Education segment engages in the US, Canadian, and international higher education courseware businesses. Pearson plc was founded in 1844 and is headquartered in London, the United Kingdom.

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Frequently Asked Questions

Is PEARSON PLC (PSO) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), PEARSON PLC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is PEARSON PLC's debt ratio?

PEARSON PLC's debt ratio is 17.9% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 22.9%.

What are PEARSON PLC's key financial metrics?

PEARSON PLC has a market capitalization of $7.8B, trailing P/E ratio of 18.5, and revenue of $3.6B. The company maintains a gross margin of 52.0% and a net margin of 9.4%. Return on equity stands at 8.7%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.