In the world of growth stocks, NYSE:PSN shines as a value proposition.

Our stock screener has singled out PARSONS CORP (NYSE:PSN) as an attractive growth opportunity. NYSE:PSN is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

A Closer Look at Growth for NYSE:PSN

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:PSN has received a 8 out of 10:

• The Earnings Per Share has grown by an impressive 40.71% over the past year.
• PSN shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.88%.
• Measured over the past years, PSN shows a quite strong growth in Revenue. The Revenue has been growing by 9.20% on average per year.
• PSN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.06% yearly.
• The Revenue is expected to grow by 14.79% on average over the next years. This is quite good.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Insights: NYSE:PSN

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:PSN was assigned a score of 5 for valuation:

• PSN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PSN is cheaper than 73.42% of the companies in the same industry.
• PSN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• PSN has a very decent profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as PSN's earnings are expected to grow with 23.06% in the coming years.

Unpacking NYSE:PSN's Health Rating

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:PSN has earned a 6 out of 10:

• 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's Altman-Z score of 3.68 is fine compared to the rest of the industry. PSN outperforms 64.56% of its industry peers.
• PSN has a debt to FCF ratio of 2.30. This is a good value and a sign of high solvency as PSN would need 2.30 years to pay back of all of its debts.
• PSN has a Debt to FCF ratio of 2.30. This is in the better half of the industry: PSN outperforms 69.62% of its industry peers.
• Although PSN does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

Profitability Analysis 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's Return On Invested Capital of 9.43% is fine compared to the rest of the industry. PSN outperforms 62.03% of its industry peers.
• The last Return On Invested Capital (9.43%) for PSN is above the 3 year average (4.85%), which is a sign of increasing profitability.
• Looking at the Operating Margin, with a value of 7.31%, PSN is in the better half of the industry, outperforming 60.76% of the companies in the same industry.
• 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.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Disclaimer

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.