PARSONS CORP (NYSE:PSN) Exhibits Quality Stock Traits. Here's Why.

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.

Looking into the quality metrics of PARSONS CORP

• Over the past 5 years, PARSONS CORP has experienced impressive revenue growth, with 9.2% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a robust ROIC excluding cash and goodwill at 23.37%, 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.
• The Debt/Free Cash Flow Ratio of PARSONS CORP stands at 4.03, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• 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.
• PARSONS CORP has consistently achieved strong EBIT growth over the past 5 years, with a 23.04% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• 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.

A complete 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.

Taking everything into account, PSN scores 5 out of 10 in our fundamental rating. PSN was compared to 81 industry peers in the Professional Services industry. PSN has only an average score on both its financial health and profitability. PSN is valued quite expensively, but it does show have an excellent growth rating. This makes PSN very considerable for growth investing!

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

More quality stocks can be found in our Caviar Cruise screen.

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.