News Image

Why NYSE:PSN qualifies as a quality stock.

By Mill Chart

Last update: Oct 30, 2023

In this article we will dive into PARSONS CORP (NYSE:PSN) as a possible candidate for quality investing. Investors should always do their own research, but we noticed PARSONS CORP showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Exploring Why NYSE:PSN Holds Appeal for Quality Investors.

  • PARSONS CORP has achieved substantial revenue growth over the past 5 years, with a 6.82% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • With a notable ROIC excluding cash and goodwill at 17.3%, PARSONS CORP demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • With a favorable Debt/Free Cash Flow Ratio of 3.92, PARSONS CORP showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • PARSONS CORP demonstrates consistent Profit Quality over the past 5 years, with a strong 201.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • The 5-year EBIT growth of PARSONS CORP has been remarkable, with 8.83% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • The EBIT 5-year growth of PARSONS CORP has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

What else is there to say on the fundamentals of NYSE:PSN?

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

PSN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 77 industry peers in the Professional Services industry. Both the profitability and the financial health of PSN get a neutral evaluation. Nothing too spectacular is happening here. PSN is quite expensive at the moment. It does show a decent growth rate.

Our latest full fundamental report of PSN contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This article should in no way be interpreted as advice in any way. 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.

Back