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Why PARSONS CORP (NYSE:PSN) qualifies as a quality stock.

By Mill Chart

Last update: Sep 13, 2024

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.


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Key Considerations for Quality Investors.

  • The 5-year revenue growth of PARSONS CORP has been remarkable, with 9.2% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • With a robust ROIC excluding cash and goodwill at 27.06%, 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 2.79, 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.
  • With a robust 5-year EBIT growth of 23.04%, 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.

A complete fundamental analysis of NYSE:PSN

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

PSN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 80 industry peers in the Professional Services industry. PSN has an average financial health and profitability rating. PSN shows excellent growth, but is valued quite expensive already. This makes PSN very considerable for growth investing!

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

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

Keep in mind

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.

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