Should you consider NYSE:PSN for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if PARSONS CORP (NYSE:PSN) is suited for quality investing. Investors should of course do their own research, but we spotted PARSONS CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Exploring Why NYSE:PSN Holds Appeal for Quality Investors.

• PARSONS CORP has demonstrated significant revenue growth over the past 5 years, with a 6.82% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• With a notable ROIC excluding cash and goodwill at 18.65%, 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 3.12, 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.
• With a favorable Profit Quality (5-year) ratio of 200.0%, PARSONS CORP showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• With a robust 5-year EBIT growth of 8.84%, PARSONS CORP showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• PARSONS CORP demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental Analysis Observations

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

PSN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 80 industry peers in the Professional Services industry. PSN has only an average score on both its financial health and profitability. PSN is valied quite expensively at the moment, while it does show a decent growth rate.

Check the latest full fundamental report of PSN for a complete fundamental analysis.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.