ASGN INC (ASGN) Stock Fundamental Analysis
USA - NYSE:ASGN - US00191U1025 - Common Stock
43.68 USD
+0.06 (+0.14%)
44.2 USD
+0.52 (+1.19%)
Taking everything into account, ASGN scores 5 out of 10 in our fundamental rating. ASGN was compared to 84 industry peers in the IT Services industry. Both the profitability and the financial health of ASGN get a neutral evaluation. Nothing too spectacular is happening here. ASGN has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
ASGN had positive earnings in the past year.
In the past year ASGN had a positive cash flow from operations.
ASGN had positive earnings in each of the past 5 years.
In the past 5 years ASGN always reported a positive cash flow from operatings.
1.2 Ratios
ASGN has a Return On Assets of 3.77%. This is in the better half of the industry: ASGN outperforms 63.10% of its industry peers.
Looking at the Return On Equity, with a value of 7.67%, ASGN is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
The Return On Invested Capital of ASGN (5.97%) is better than 61.90% of its industry peers.
ASGN had an Average Return On Invested Capital over the past 3 years of 8.44%. This is significantly below the industry average of 28.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 7.67% | ||
| ROIC | 5.97% |
ROA(3y)6.26%
ROA(5y)7.32%
ROE(3y)11.85%
ROE(5y)14.03%
ROIC(3y)8.44%
ROIC(5y)8.19%
1.3 Margins
ASGN's Profit Margin of 3.50% is in line compared to the rest of the industry. ASGN outperforms 58.33% of its industry peers.
In the last couple of years the Profit Margin of ASGN has declined.
ASGN has a Operating Margin (6.67%) which is in line with its industry peers.
ASGN's Operating Margin has declined in the last couple of years.
ASGN's Gross Margin of 28.84% is on the low side compared to the rest of the industry. ASGN is outperformed by 64.29% of its industry peers.
ASGN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.67% | ||
| PM (TTM) | 3.5% | ||
| GM | 28.84% |
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 less shares outstanding than it did 1 year ago.
ASGN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ASGN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.49 indicates that ASGN is not a great score, but indicates only limited risk for bankruptcy at the moment.
ASGN has a Altman-Z score (2.49) which is in line with its industry peers.
The Debt to FCF ratio of ASGN is 3.57, which is a good value as it means it would take ASGN, 3.57 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.57, ASGN is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
ASGN has a Debt/Equity ratio of 0.66. This is a neutral value indicating ASGN is somewhat dependend on debt financing.
ASGN has a worse Debt to Equity ratio (0.66) than 60.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 2.49 |
ROIC/WACC0.71
WACC8.45%
2.3 Liquidity
ASGN has a Current Ratio of 2.11. This indicates that ASGN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ASGN (2.11) is better than 61.90% of its industry peers.
A Quick Ratio of 2.11 indicates that ASGN has no problem at all paying its short term obligations.
ASGN has a Quick ratio of 2.11. This is in the better half of the industry: ASGN outperforms 63.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 2.11 |
3. Growth
3.1 Past
The earnings per share for ASGN have decreased strongly by -13.33% in the last year.
Measured over the past 5 years, ASGN shows a small growth in Earnings Per Share. The EPS has been growing by 2.16% on average per year.
ASGN shows a decrease in Revenue. In the last year, the revenue decreased by -4.86%.
ASGN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.72% yearly.
EPS 1Y (TTM)-13.33%
EPS 3Y-2.25%
EPS 5Y2.16%
EPS Q2Q%-8.39%
Revenue 1Y (TTM)-4.86%
Revenue growth 3Y0.74%
Revenue growth 5Y3.72%
Sales Q2Q%-1.9%
3.2 Future
The Earnings Per Share is expected to grow by 3.48% on average over the next years.
ASGN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.62% yearly.
EPS Next Y-10.98%
EPS Next 2Y-2.06%
EPS Next 3Y3.48%
EPS Next 5YN/A
Revenue Next Year-3.48%
Revenue Next 2Y-1.45%
Revenue Next 3Y0.62%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.33 indicates a reasonable valuation of ASGN.
90.48% of the companies in the same industry are more expensive than ASGN, based on the Price/Earnings ratio.
ASGN is valuated cheaply when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.71, which indicates a very decent valuation of ASGN.
Based on the Price/Forward Earnings ratio, ASGN is valued cheaper than 91.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.73, ASGN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.33 | ||
| Fwd PE | 8.71 |
4.2 Price Multiples
84.52% of the companies in the same industry are more expensive than ASGN, based on the Enterprise Value to EBITDA ratio.
95.24% 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 | 5.64 | ||
| EV/EBITDA | 8.1 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.32
EPS Next 2Y-2.06%
EPS Next 3Y3.48%
5. Dividend
5.1 Amount
ASGN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
43.68
+0.06 (+0.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners98.61%
Inst Owner Change-0.09%
Ins Owners3.59%
Ins Owner Change-0.02%
Market Cap1.91B
Revenue(TTM)3.99B
Net Income(TTM)140.10M
Analysts72.31
Price Target54.23 (24.15%)
Short Float %5.42%
Short Ratio3.86
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)1
Avg EPS beat(2)0.37%
Min EPS beat(2)-5.06%
Max EPS beat(2)5.79%
EPS beat(4)3
Avg EPS beat(4)1.87%
Min EPS beat(4)-5.06%
Max EPS beat(4)5.79%
EPS beat(8)7
Avg EPS beat(8)2.52%
EPS beat(12)8
Avg EPS beat(12)1.43%
EPS beat(16)12
Avg EPS beat(16)3.13%
Revenue beat(2)1
Avg Revenue beat(2)-0.38%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)0.55%
Revenue beat(4)1
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-3.43%
Max Revenue beat(4)0.55%
Revenue beat(8)1
Avg Revenue beat(8)-1.6%
Revenue beat(12)1
Avg Revenue beat(12)-1.77%
Revenue beat(16)3
Avg Revenue beat(16)-1.28%
PT rev (1m)-7.54%
PT rev (3m)-7.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)1.78%
EPS NY rev (3m)3.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.33 | ||
| Fwd PE | 8.71 | ||
| P/S | 0.48 | ||
| P/FCF | 5.64 | ||
| P/OCF | 5.07 | ||
| P/B | 1.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.1 |
EPS(TTM)4.68
EY10.71%
EPS(NY)5.02
Fwd EY11.49%
FCF(TTM)7.74
FCFY17.73%
OCF(TTM)8.62
OCFY19.74%
SpS91.44
BVpS41.71
TBVpS-18.3
PEG (NY)N/A
PEG (5Y)4.32
Graham Number66.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 7.67% | ||
| ROCE | 8.14% | ||
| ROIC | 5.97% | ||
| ROICexc | 6.23% | ||
| ROICexgc | 38.16% | ||
| OM | 6.67% | ||
| PM (TTM) | 3.5% | ||
| GM | 28.84% | ||
| FCFM | 8.47% |
ROA(3y)6.26%
ROA(5y)7.32%
ROE(3y)11.85%
ROE(5y)14.03%
ROIC(3y)8.44%
ROIC(5y)8.19%
ROICexc(3y)8.85%
ROICexc(5y)8.94%
ROICexgc(3y)45.83%
ROICexgc(5y)47.14%
ROCE(3y)11.51%
ROCE(5y)11.17%
ROICexgc growth 3Y-8.35%
ROICexgc growth 5Y2.66%
ROICexc growth 3Y-8.5%
ROICexc growth 5Y-0.68%
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-Score5
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 3.57 | ||
| Debt/EBITDA | 3.29 | ||
| Cap/Depr | 37.89% | ||
| Cap/Sales | 0.96% | ||
| Interest Coverage | 4.15 | ||
| Cash Conversion | 102.47% | ||
| Profit Quality | 242.11% | ||
| Current Ratio | 2.11 | ||
| Quick Ratio | 2.11 | ||
| Altman-Z | 2.49 |
F-Score5
WACC8.45%
ROIC/WACC0.71
Cap/Depr(3y)39.16%
Cap/Depr(5y)38.51%
Cap/Sales(3y)0.86%
Cap/Sales(5y)0.87%
Profit Quality(3y)166.38%
Profit Quality(5y)146.75%
High Growth Momentum
Growth
EPS 1Y (TTM)-13.33%
EPS 3Y-2.25%
EPS 5Y2.16%
EPS Q2Q%-8.39%
EPS Next Y-10.98%
EPS Next 2Y-2.06%
EPS Next 3Y3.48%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.86%
Revenue growth 3Y0.74%
Revenue growth 5Y3.72%
Sales Q2Q%-1.9%
Revenue Next Year-3.48%
Revenue Next 2Y-1.45%
Revenue Next 3Y0.62%
Revenue Next 5YN/A
EBIT growth 1Y-19.89%
EBIT growth 3Y-4.63%
EBIT growth 5Y1.96%
EBIT Next Year37.71%
EBIT Next 3Y16.33%
EBIT Next 5YN/A
FCF growth 1Y7.89%
FCF growth 3Y31.88%
FCF growth 5Y5.39%
OCF growth 1Y5.98%
OCF growth 3Y27.34%
OCF growth 5Y5.01%
ASGN INC / ASGN FAQ
What is the fundamental rating for ASGN stock?
ChartMill assigns a fundamental rating of 5 / 10 to ASGN.
What is the valuation status for ASGN stock?
ChartMill assigns a valuation rating of 7 / 10 to ASGN INC (ASGN). This can be considered as Undervalued.
How profitable is ASGN INC (ASGN) stock?
ASGN INC (ASGN) has a profitability rating of 4 / 10.
What is the financial health of ASGN INC (ASGN) stock?
The financial health rating of ASGN INC (ASGN) is 6 / 10.