Investors seeking growth at a reasonable cost should explore NYSE:PSN.

Last update: Nov 21, 2024

PARSONS CORP (NYSE:PSN) was identified as an affordable growth stock by our stock screener. NYSE:PSN is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

How We Gauge Growth for NYSE:PSN

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:PSN scores a 8 out of 10:

PSN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.71%, which is quite impressive.
Looking at the last year, PSN shows a very strong growth in Revenue. The Revenue has grown by 28.88%.
The Revenue has been growing by 9.20% on average over the past years. This is quite good.
The Earnings Per Share is expected to grow by 22.79% on average over the next years. This is a very strong growth
Based on estimates for the next years, PSN will show a quite strong growth in Revenue. The Revenue will grow by 14.63% on average per year.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Assessment of NYSE:PSN

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:PSN scores a 4 out of 10:

Based on the Price/Free Cash Flow ratio, PSN is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
PSN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of PSN may justify a higher PE ratio.
A more expensive valuation may be justified as PSN's earnings are expected to grow with 22.79% in the coming years.

Health Analysis for NYSE:PSN

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:PSN was assigned a score of 6 for health:

PSN has an Altman-Z score of 3.68. This indicates that PSN is financially healthy and has little risk of bankruptcy at the moment.
PSN has a Altman-Z score of 3.68. This is in the better half of the industry: PSN outperforms 67.53% of its industry peers.
The Debt to FCF ratio of PSN is 2.30, which is a good value as it means it would take PSN, 2.30 years of fcf income to pay off all of its debts.
PSN has a better Debt to FCF ratio (2.30) than 72.73% of its industry peers.
Even though the debt/equity ratio score it not favorable for PSN, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

A Closer Look at Profitability for NYSE:PSN

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:PSN has earned a 6 out of 10:

PSN has a Return On Invested Capital of 9.43%. This is in the better half of the industry: PSN outperforms 62.34% of its industry peers.
The 3 year average ROIC (4.85%) for PSN is below the current ROIC(9.43%), indicating increased profibility in the last year.
PSN has a Operating Margin of 7.31%. This is in the better half of the industry: PSN outperforms 62.34% of its industry peers.
In the last couple of years the Operating Margin of PSN has grown nicely.
In the last couple of years the Gross Margin of PSN has grown nicely.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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

Keep in mind

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.