Looking for growth without the hefty price tag? Consider NYSE:PSN.

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.

Growth Assessment of NYSE:PSN

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:PSN boasts 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%.
• The Revenue has been growing by 9.20% on average over the past years. This is quite good.
• PSN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.25% yearly.
• The Revenue is expected to grow by 14.66% on average over the next years. This is quite good.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

A Closer Look at Valuation for NYSE:PSN

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:PSN boasts a 6 out of 10:

• PSN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 94.77.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of PSN indicates a rather cheap valuation: PSN is cheaper than 81.01% of the companies listed 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.
• 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 22.25% in the coming years.

Health Assessment of NYSE:PSN

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:PSN has achieved a 5 out of 10:

• PSN has an Altman-Z score of 3.31. This indicates that PSN is financially healthy and has little risk of bankruptcy at the moment.
• 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 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 Examination 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:

• The Return On Invested Capital of PSN (9.43%) is better than 63.29% 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.
• 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.
• PSN's Operating Margin has improved in the last couple of years.
• In the last couple of years the Gross Margin of PSN has grown nicely.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

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.