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Why PARSONS CORP (NYSE:PSN) Deserves Consideration as a Quality Investment.

By Mill Chart

Last update: Oct 4, 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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What matters for quality investors.

  • 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.
  • PARSONS CORP demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 27.06% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • With a favorable Debt/Free Cash Flow Ratio of 2.79, 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 223.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • 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 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.

What is the full fundamental picture of NYSE:PSN telling us.

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple 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 an average financial health and profitability rating. PSN is valued quite expensively, but it does show have an excellent growth rating. This makes PSN very considerable for growth investing!

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

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

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