ASGN INC (ASGN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ASGN - US00191U1025 - Common Stock
51.21 USD
+0.73 (+1.45%)
51.15 USD
-0.06 (-0.12%)
Taking everything into account, ASGN scores 4 out of 10 in our fundamental rating. ASGN was compared to 88 industry peers in the IT Services industry. ASGN has only an average score on both its financial health and profitability. ASGN has a bad growth rate and is valued cheaply.
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.
Each year in the past 5 years ASGN has been profitable.
ASGN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ASGN (3.53%) is better than 62.50% of its industry peers.
ASGN has a Return On Equity of 7.13%. This is in the better half of the industry: ASGN outperforms 62.50% of its industry peers.
With a decent Return On Invested Capital value of 6.08%, ASGN is doing good in the industry, outperforming 63.64% of the companies in the same industry.
ASGN had an Average Return On Invested Capital over the past 3 years of 8.44%. This is significantly below the industry average of 28.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 7.13% | ||
| ROIC | 6.08% |
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 3.28% is in line compared to the rest of the industry. ASGN outperforms 57.95% of its industry peers.
In the last couple of years the Profit Margin of ASGN has declined.
The Operating Margin of ASGN (6.74%) is better than 63.64% of its industry peers.
ASGN's Operating Margin has declined in the last couple of years.
ASGN has a worse Gross Margin (28.90%) than 63.64% of its industry peers.
In the last couple of years the Gross Margin of ASGN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.74% | ||
| PM (TTM) | 3.28% | ||
| GM | 28.9% |
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.
Compared to 1 year ago, ASGN has less shares outstanding
The number of shares outstanding for ASGN has been reduced compared to 5 years ago.
The debt/assets ratio for ASGN is higher compared to a year ago.
2.2 Solvency
ASGN has an Altman-Z score of 2.59. This is not the best score and indicates that ASGN is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.59, ASGN is in line with its industry, outperforming 50.00% of the companies in the same industry.
ASGN has a debt to FCF ratio of 4.11. This is a neutral value as ASGN would need 4.11 years to pay back of all of its debts.
ASGN has a Debt to FCF ratio (4.11) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.64 indicates that ASGN is somewhat dependend on debt financing.
The Debt to Equity ratio of ASGN (0.64) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.7
WACC8.74%
2.3 Liquidity
ASGN has a Current Ratio of 1.99. This is a normal value and indicates that ASGN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.99, ASGN is in line with its industry, outperforming 57.95% of the companies in the same industry.
A Quick Ratio of 1.99 indicates that ASGN should not have too much problems paying its short term obligations.
ASGN has a Quick ratio (1.99) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
The earnings per share for ASGN have decreased strongly by -13.33% in the last year.
The Earnings Per Share has been growing slightly by 2.16% on average over the past years.
The Revenue has decreased by -4.86% in the past year.
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 3.87% on average over the next years.
The Revenue is expected to grow by 0.54% on average over the next years.
EPS Next Y-10.98%
EPS Next 2Y-2.02%
EPS Next 3Y3.87%
EPS Next 5YN/A
Revenue Next Year-3.48%
Revenue Next 2Y-1.49%
Revenue Next 3Y0.54%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
ASGN is valuated reasonably with a Price/Earnings ratio of 10.94.
ASGN's Price/Earnings ratio is rather cheap when compared to the industry. ASGN is cheaper than 89.77% of the companies in the same industry.
ASGN is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.20, the valuation of ASGN can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ASGN indicates a rather cheap valuation: ASGN is cheaper than 92.05% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ASGN to the average of the S&P500 Index (23.92), we can say ASGN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.94 | ||
| Fwd PE | 10.2 |
4.2 Price Multiples
86.36% of the companies in the same industry are more expensive than ASGN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ASGN is valued cheaply inside the industry as 93.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.72 | ||
| EV/EBITDA | 8.58 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.07
EPS Next 2Y-2.02%
EPS Next 3Y3.87%
5. Dividend
5.1 Amount
ASGN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
51.21
+0.73 (+1.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners101.19%
Inst Owner Change0.12%
Ins Owners3.68%
Ins Owner Change9.99%
Market Cap2.19B
Revenue(TTM)3.99B
Net Income(TTM)130.70M
Analysts72.31
Price Target49.64 (-3.07%)
Short Float %5.36%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)5.35%
Min EPS beat(2)4.9%
Max EPS beat(2)5.79%
EPS beat(4)3
Avg EPS beat(4)2.24%
Min EPS beat(4)-5.06%
Max EPS beat(4)5.79%
EPS beat(8)7
Avg EPS beat(8)2.43%
EPS beat(12)9
Avg EPS beat(12)1.95%
EPS beat(16)12
Avg EPS beat(16)3.08%
Revenue beat(2)1
Avg Revenue beat(2)-0.39%
Min Revenue beat(2)-1.33%
Max Revenue beat(2)0.55%
Revenue beat(4)1
Avg Revenue beat(4)-1.38%
Min Revenue beat(4)-3.43%
Max Revenue beat(4)0.55%
Revenue beat(8)1
Avg Revenue beat(8)-1.55%
Revenue beat(12)1
Avg Revenue beat(12)-1.74%
Revenue beat(16)3
Avg Revenue beat(16)-1.32%
PT rev (1m)0%
PT rev (3m)-15.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.73%
EPS NY rev (1m)0%
EPS NY rev (3m)1.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.94 | ||
| Fwd PE | 10.2 | ||
| P/S | 0.55 | ||
| P/FCF | 7.72 | ||
| P/OCF | 6.71 | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.58 |
EPS(TTM)4.68
EY9.14%
EPS(NY)5.02
Fwd EY9.81%
FCF(TTM)6.63
FCFY12.96%
OCF(TTM)7.63
OCFY14.9%
SpS93.33
BVpS42.93
TBVpS-18.26
PEG (NY)N/A
PEG (5Y)5.07
Graham Number67.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 7.13% | ||
| ROCE | 8.29% | ||
| ROIC | 6.08% | ||
| ROICexc | 6.33% | ||
| ROICexgc | 39.49% | ||
| OM | 6.74% | ||
| PM (TTM) | 3.28% | ||
| GM | 28.9% | ||
| FCFM | 7.11% |
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 | 0.64 | ||
| Debt/FCF | 4.11 | ||
| Debt/EBITDA | 3.1 | ||
| Cap/Depr | 39.53% | ||
| Cap/Sales | 1.07% | ||
| Interest Coverage | 4.1 | ||
| Cash Conversion | 86.65% | ||
| Profit Quality | 216.76% | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z | 2.59 |
F-Score5
WACC8.74%
ROIC/WACC0.7
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-2.02%
EPS Next 3Y3.87%
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-1.49%
Revenue Next 3Y0.54%
Revenue Next 5YN/A
EBIT growth 1Y-14.38%
EBIT growth 3Y-4.63%
EBIT growth 5Y1.96%
EBIT Next Year38.4%
EBIT Next 3Y15.46%
EBIT Next 5YN/A
FCF growth 1Y-23.97%
FCF growth 3Y31.88%
FCF growth 5Y5.39%
OCF growth 1Y-21.64%
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 4 / 10 to ASGN.
What is the valuation status of ASGN INC (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 5 / 10.
How financially healthy is ASGN INC?
The financial health rating of ASGN INC (ASGN) is 4 / 10.
What is the expected EPS growth for ASGN INC (ASGN) stock?
The Earnings per Share (EPS) of ASGN INC (ASGN) is expected to decline by -10.98% in the next year.