ASGN INC (NYSE:ASGN) is an undervalued gem with solid fundamentals.

Consider ASGN INC (NYSE:ASGN) as a top value stock, identified by our stock screening tool. ASGN shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

What does the Valuation looks like for ASGN

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. ASGN boasts a 7 out of 10:

• The Price/Earnings ratio is 11.71, which indicates a very decent valuation of ASGN.
• Based on the Price/Earnings ratio, ASGN is valued cheaper than 90.00% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 27.10, ASGN is valued rather cheaply.
• A Price/Forward Earnings ratio of 11.90 indicates a reasonable valuation of ASGN.
• ASGN's Price/Forward Earnings ratio is rather cheap when compared to the industry. ASGN is cheaper than 87.50% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of ASGN to the average of the S&P500 Index (20.33), we can say ASGN is valued slightly cheaper.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ASGN indicates a rather cheap valuation: ASGN is cheaper than 86.25% of the companies listed in the same industry.
• ASGN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ASGN is cheaper than 95.00% of the companies in the same industry.
• A more expensive valuation may be justified as ASGN's earnings are expected to grow with 12.73% in the coming years.

A Closer Look at Profitability for ASGN

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of ASGN, the assigned 5 is noteworthy for profitability:

• ASGN has a better Return On Assets (5.11%) than 68.75% of its industry peers.
• The Return On Equity of ASGN (9.86%) is better than 66.25% of its industry peers.
• ASGN has a better Return On Invested Capital (7.29%) than 67.50% of its industry peers.
• Looking at the Profit Margin, with a value of 4.27%, ASGN is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
• ASGN has a Operating Margin of 7.42%. This is in the better half of the industry: ASGN outperforms 62.50% of its industry peers.

Health Assessment of ASGN

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. ASGN has earned a 7 out of 10:

• An Altman-Z score of 3.10 indicates that ASGN is not in any danger for bankruptcy at the moment.
• The Debt to FCF ratio of ASGN is 2.83, which is a good value as it means it would take ASGN, 2.83 years of fcf income to pay off all of its debts.
• ASGN has a better Debt to FCF ratio (2.83) than 63.75% of its industry peers.
• ASGN has a Current Ratio of 2.50. This indicates that ASGN is financially healthy and has no problem in meeting its short term obligations.
• ASGN has a Current ratio of 2.50. This is in the better half of the industry: ASGN outperforms 76.25% of its industry peers.
• ASGN has a Quick Ratio of 2.50. This indicates that ASGN is financially healthy and has no problem in meeting its short term obligations.
• With a decent Quick ratio value of 2.50, ASGN is doing good in the industry, outperforming 76.25% of the companies in the same industry.

A Closer Look at Growth for ASGN

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. ASGN scores a 4 out of 10:

• ASGN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.73% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of ASGN

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.