ASGN INC (ASGN) Stock Fundamental Analysis
NYSE:ASGN - New York Stock Exchange, Inc. - US00191U1025 - Common Stock - Currency: USD
ASGN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 81 industry peers in the IT Services industry. ASGN has an average financial health and profitability rating. ASGN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ASGN was profitable.
In the past year ASGN had a positive cash flow from operations.
In the past 5 years ASGN has always been profitable.
ASGN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ASGN has a better Return On Assets (5.34%) than 70.37% of its industry peers.
With a decent Return On Equity value of 10.32%, ASGN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.59%, ASGN is doing good in the industry, outperforming 71.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.34% | ||
| ROE | 10.32% | ||
| ROIC | 7.59% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ASGN has a Profit Margin of 4.37%. This is in the better half of the industry: ASGN outperforms 64.20% of its industry peers.
ASGN's Profit Margin has declined in the last couple of years.
The Operating Margin of ASGN (7.49%) is better than 65.43% of its industry peers.
In the last couple of years the Operating Margin of ASGN has declined.
ASGN's Gross Margin of 28.71% is on the low side compared to the rest of the industry. ASGN is outperformed by 62.96% of its industry peers.
ASGN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.49% | ||
| PM (TTM) | 4.37% | ||
| GM | 28.71% |
OM growth 3Y-5.33%
OM growth 5Y-1.69%
PM growth 3Y-25.23%
PM growth 5Y-3.53%
GM growth 3Y0.44%
GM growth 5Y0.3%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ASGN is destroying value.
ASGN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 3.19 indicates that ASGN is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.19, ASGN perfoms like the industry average, outperforming 58.02% of the companies in the same industry.
The Debt to FCF ratio of ASGN is 2.69, which is a good value as it means it would take ASGN, 2.69 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.69, ASGN is doing good in the industry, outperforming 62.96% of the companies in the same industry.
A Debt/Equity ratio of 0.58 indicates that ASGN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.58, ASGN is in line with its industry, outperforming 44.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 2.69 | ||
| Altman-Z | 3.19 |
ROIC/WACC0.76
WACC9.94%
2.3 Liquidity
A Current Ratio of 2.25 indicates that ASGN has no problem at all paying its short term obligations.
ASGN has a Current ratio of 2.25. This is in the better half of the industry: ASGN outperforms 75.31% of its industry peers.
A Quick Ratio of 2.25 indicates that ASGN has no problem at all paying its short term obligations.
The Quick ratio of ASGN (2.25) is better than 75.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 2.25 |
3. Growth
3.1 Past
The earnings per share for ASGN have decreased strongly by -14.26% in the last year.
ASGN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.16% yearly.
Looking at the last year, ASGN shows a decrease in Revenue. The Revenue has decreased by -7.88% in the last year.
The Revenue has been growing slightly by 3.72% on average over the past years.
EPS 1Y (TTM)-14.26%
EPS 3Y-2.25%
EPS 5Y2.16%
EPS Q2Q%-11.72%
Revenue 1Y (TTM)-7.88%
Revenue growth 3Y0.74%
Revenue growth 5Y3.72%
Sales Q2Q%-8.3%
3.2 Future
Based on estimates for the next years, ASGN will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.73% on average per year.
The Revenue is expected to grow by 4.44% on average over the next years.
EPS Next Y-1.93%
EPS Next 2Y6.29%
EPS Next 3Y12.73%
EPS Next 5YN/A
Revenue Next Year-1.14%
Revenue Next 2Y2.48%
Revenue Next 3Y4.44%
Revenue Next 5YN/A
3.3 Evolution
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ASGN is valuated correctly with a Price/Earnings ratio of 13.09.
ASGN's Price/Earnings ratio is rather cheap when compared to the industry. ASGN is cheaper than 90.12% of the companies in the same industry.
ASGN is valuated cheaply when we compare the Price/Earnings ratio to 29.71, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.35, which indicates a correct valuation of ASGN.
Based on the Price/Forward Earnings ratio, ASGN is valued cheaply inside the industry as 83.95% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ASGN to the average of the S&P500 Index (22.34), we can say ASGN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 13.35 |
4.2 Price Multiples
83.95% of the companies in the same industry are more expensive than ASGN, based on the Enterprise Value to EBITDA ratio.
93.83% of the companies in the same industry are more expensive than ASGN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.86 | ||
| EV/EBITDA | 9.13 |
4.3 Compensation for Growth
A more expensive valuation may be justified as ASGN's earnings are expected to grow with 12.73% in the coming years.
PEG (NY)N/A
PEG (5Y)6.06
EPS Next 2Y6.29%
EPS Next 3Y12.73%
5. Dividend
5.1 Amount
No dividends for ASGN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
68.48
+3.04 (+4.65%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners100.06%
Inst Owner Change0.72%
Ins Owners3.53%
Ins Owner Change-0.01%
Market Cap3.03B
Analysts76.92
Price Target96.73 (41.25%)
Short Float %4.95%
Short Ratio4.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.93%
Min EPS beat(2)0.44%
Max EPS beat(2)3.41%
EPS beat(4)4
Avg EPS beat(4)2.61%
Min EPS beat(4)0.44%
Max EPS beat(4)4.02%
EPS beat(8)6
Avg EPS beat(8)1.8%
EPS beat(12)9
Avg EPS beat(12)3.36%
EPS beat(16)13
Avg EPS beat(16)3.88%
Revenue beat(2)0
Avg Revenue beat(2)-2.7%
Min Revenue beat(2)-3.12%
Max Revenue beat(2)-2.27%
Revenue beat(4)0
Avg Revenue beat(4)-1.72%
Min Revenue beat(4)-3.12%
Max Revenue beat(4)-0.08%
Revenue beat(8)0
Avg Revenue beat(8)-1.93%
Revenue beat(12)2
Avg Revenue beat(12)-1.3%
Revenue beat(16)2
Avg Revenue beat(16)-2.47%
PT rev (1m)-1.22%
PT rev (3m)-2.4%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)0.12%
EPS NY rev (1m)-9.28%
EPS NY rev (3m)-9.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-2.95%
Revenue NY rev (3m)-2.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.09 | ||
| Fwd PE | 13.35 | ||
| P/S | 0.72 | ||
| P/FCF | 7.86 | ||
| P/OCF | 7.27 | ||
| P/B | 1.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.13 |
EPS(TTM)5.23
EY7.64%
EPS(NY)5.13
Fwd EY7.49%
FCF(TTM)8.71
FCFY12.72%
OCF(TTM)9.42
OCFY13.75%
SpS94.77
BVpS40.14
TBVpS-12.98
PEG (NY)N/A
PEG (5Y)6.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.34% | ||
| ROE | 10.32% | ||
| ROCE | 10.36% | ||
| ROIC | 7.59% | ||
| ROICexc | 8.04% | ||
| ROICexgc | 44.78% | ||
| OM | 7.49% | ||
| PM (TTM) | 4.37% | ||
| GM | 28.71% | ||
| FCFM | 9.19% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-5.33%
OM growth 5Y-1.69%
PM growth 3Y-25.23%
PM growth 5Y-3.53%
GM growth 3Y0.44%
GM growth 5Y0.3%
F-Score4
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 2.69 | ||
| Debt/EBITDA | 2.51 | ||
| Cap/Depr | 31.8% | ||
| Cap/Sales | 0.74% | ||
| Interest Coverage | 4.89 | ||
| Cash Conversion | 101.09% | ||
| Profit Quality | 210.27% | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 2.25 | ||
| Altman-Z | 3.19 |
F-Score4
WACC9.94%
ROIC/WACC0.76
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-14.26%
EPS 3Y-2.25%
EPS 5Y2.16%
EPS Q2Q%-11.72%
EPS Next Y-1.93%
EPS Next 2Y6.29%
EPS Next 3Y12.73%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.88%
Revenue growth 3Y0.74%
Revenue growth 5Y3.72%
Sales Q2Q%-8.3%
Revenue Next Year-1.14%
Revenue Next 2Y2.48%
Revenue Next 3Y4.44%
Revenue Next 5YN/A
EBIT growth 1Y-15.49%
EBIT growth 3Y-4.63%
EBIT growth 5Y1.96%
EBIT Next Year51.57%
EBIT Next 3Y24.1%
EBIT Next 5YN/A
FCF growth 1Y3.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.1%
OCF growth 3YN/A
OCF growth 5YN/A