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Why Quality Investors Should Delve into PARSONS CORP (NYSE:PSN) for Investment Opportunities.

By Mill Chart

Last update: Apr 16, 2024

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.

Highlighting Notable Quality Metrics of NYSE:PSN.

  • PARSONS CORP has shown strong performance in revenue growth over the past 5 years, with a 9.2% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • With a robust ROIC excluding cash and goodwill at 24.72%, PARSONS CORP showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • With a Debt/Free Cash Flow Ratio of 2.05, PARSONS CORP exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • The Profit Quality (5-year) of PARSONS CORP stands at 223.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • The 5-year EBIT growth of PARSONS CORP has been remarkable, with 23.04% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • PARSONS CORP has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental analysis 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.

We assign a fundamental rating of 5 out of 10 to PSN. PSN was compared to 81 industry peers in the Professional Services industry. PSN has an average financial health and profitability rating. PSN is valued quite expensively, but it does show have an excellent growth rating. These ratings could make PSN a good candidate for growth investing.

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.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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