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ASGN INC (ASGN) Stock Fundamental Analysis

NYSE:ASGN - New York Stock Exchange, Inc. - US00191U1025 - Common Stock - Currency: USD

88.21  -0.66 (-0.74%)

After market: 88.21 0 (0%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to ASGN. ASGN was compared to 82 industry peers in the IT Services industry. ASGN has an excellent financial health rating, but there are some minor concerns on its profitability. ASGN has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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6

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.
In the past 5 years ASGN has always been profitable.
In the past 5 years ASGN always reported a positive cash flow from operatings.
ASGN Yearly Net Income VS EBIT VS OCF VS FCFASGN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M

1.2 Ratios

ASGN has a Return On Assets of 5.34%. This is in the better half of the industry: ASGN outperforms 67.09% of its industry peers.
Looking at the Return On Equity, with a value of 10.32%, ASGN is in the better half of the industry, outperforming 65.82% of the companies in the same industry.
The Return On Invested Capital of ASGN (7.62%) is better than 69.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ASGN is in line with the industry average of 9.86%.
Industry RankSector Rank
ROA 5.34%
ROE 10.32%
ROIC 7.62%
ROA(3y)8.46%
ROA(5y)7.48%
ROE(3y)15.89%
ROE(5y)14.6%
ROIC(3y)8.84%
ROIC(5y)8.31%
ASGN Yearly ROA, ROE, ROICASGN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

1.3 Margins

With a decent Profit Margin value of 4.37%, ASGN is doing good in the industry, outperforming 62.03% of the companies in the same industry.
ASGN's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 7.49%, ASGN is in the better half of the industry, outperforming 64.56% of the companies in the same industry.
ASGN's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 28.71%, ASGN is doing worse than 65.82% of the companies in the same industry.
ASGN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 7.49%
PM (TTM) 4.37%
GM 28.71%
OM growth 3Y0.62%
OM growth 5Y0.1%
PM growth 3Y-4.85%
PM growth 5Y1.22%
GM growth 3Y2.07%
GM growth 5Y-0.91%
ASGN Yearly Profit, Operating, Gross MarginsASGN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30

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7

2. Health

2.1 Basic Checks

ASGN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ASGN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ASGN has less shares outstanding
Compared to 1 year ago, ASGN has an improved debt to assets ratio.
ASGN Yearly Shares OutstandingASGN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M 50M
ASGN Yearly Total Debt VS Total AssetsASGN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.2 Solvency

An Altman-Z score of 3.57 indicates that ASGN is not in any danger for bankruptcy at the moment.
ASGN has a Altman-Z score of 3.57. This is comparable to the rest of the industry: ASGN outperforms 54.43% of its industry peers.
ASGN has a debt to FCF ratio of 2.69. This is a good value and a sign of high solvency as ASGN would need 2.69 years to pay back of all of its debts.
ASGN has a Debt to FCF ratio of 2.69. This is in the better half of the industry: ASGN outperforms 64.56% of its industry peers.
ASGN has a Debt/Equity ratio of 0.58. This is a neutral value indicating ASGN is somewhat dependend on debt financing.
ASGN's Debt to Equity ratio of 0.58 is in line compared to the rest of the industry. ASGN outperforms 41.77% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF 2.69
Altman-Z 3.57
ROIC/WACC0.72
WACC10.65%
ASGN Yearly LT Debt VS Equity VS FCFASGN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

2.3 Liquidity

A Current Ratio of 2.25 indicates that ASGN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.25, ASGN is in the better half of the industry, outperforming 73.42% of the companies in the same industry.
A Quick Ratio of 2.25 indicates that ASGN has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.25, ASGN is doing good in the industry, outperforming 73.42% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.25
Quick Ratio 2.25
ASGN Yearly Current Assets VS Current LiabilitesASGN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

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3

3. Growth

3.1 Past

ASGN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.34%.
ASGN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.85% yearly.
Looking at the last year, ASGN shows a decrease in Revenue. The Revenue has decreased by -7.47% in the last year.
The Revenue has been growing slightly by 5.53% on average over the past years.
EPS 1Y (TTM)-12.34%
EPS 3Y8.09%
EPS 5Y6.85%
EPS Q2Q%-14.88%
Revenue 1Y (TTM)-7.47%
Revenue growth 3Y8.32%
Revenue growth 5Y5.53%
Sales Q2Q%-7.68%

3.2 Future

The Earnings Per Share is expected to grow by 8.41% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.99% on average over the next years.
EPS Next Y-13.74%
EPS Next 2Y-3.8%
EPS Next 3Y3.25%
EPS Next 5Y8.41%
Revenue Next Year-7.13%
Revenue Next 2Y-2.74%
Revenue Next 3Y0.7%
Revenue Next 5Y2.99%

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.
ASGN Yearly Revenue VS EstimatesASGN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B 4B 5B
ASGN Yearly EPS VS EstimatesASGN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8

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6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 16.34, ASGN is valued correctly.
Based on the Price/Earnings ratio, ASGN is valued a bit cheaper than 78.48% of the companies in the same industry.
When comparing the Price/Earnings ratio of ASGN to the average of the S&P500 Index (28.46), we can say ASGN is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.63 indicates a correct valuation of ASGN.
ASGN's Price/Forward Earnings ratio is rather cheap when compared to the industry. ASGN is cheaper than 82.28% of the companies in the same industry.
ASGN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.56.
Industry RankSector Rank
PE 16.34
Fwd PE 15.63
ASGN Price Earnings VS Forward Price EarningsASGN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ASGN indicates a somewhat cheap valuation: ASGN is cheaper than 79.75% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ASGN indicates a rather cheap valuation: ASGN is cheaper than 93.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 10.13
EV/EBITDA 11.65
ASGN Per share dataASGN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

4.3 Compensation for Growth

The decent profitability rating of ASGN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.38
EPS Next 2Y-3.8%
EPS Next 3Y3.25%

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0

5. Dividend

5.1 Amount

ASGN does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ASGN INC

NYSE:ASGN (1/31/2025, 8:11:43 PM)

After market: 88.21 0 (0%)

88.21

-0.66 (-0.74%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)10-23 2024-10-23/amc
Earnings (Next)02-05 2025-02-05/amc
Inst Owners100.43%
Inst Owner Change0.01%
Ins Owners3.28%
Ins Owner Change-1.62%
Market Cap3.90B
Analysts76.92
Price Target99.79 (13.13%)
Short Float %4.6%
Short Ratio5.3
Dividend
Industry RankSector 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)0%
PT rev (3m)1.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.86%
EPS NY rev (1m)0%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.26%
Valuation
Industry RankSector Rank
PE 16.34
Fwd PE 15.63
P/S 0.93
P/FCF 10.13
P/OCF 9.37
P/B 2.2
P/tB N/A
EV/EBITDA 11.65
EPS(TTM)5.4
EY6.12%
EPS(NY)5.64
Fwd EY6.4%
FCF(TTM)8.71
FCFY9.87%
OCF(TTM)9.42
OCFY10.67%
SpS94.77
BVpS40.14
TBVpS-12.98
PEG (NY)N/A
PEG (5Y)2.38
Profitability
Industry RankSector Rank
ROA 5.34%
ROE 10.32%
ROCE 10.36%
ROIC 7.62%
ROICexc 8.06%
ROICexgc 44.91%
OM 7.49%
PM (TTM) 4.37%
GM 28.71%
FCFM 9.19%
ROA(3y)8.46%
ROA(5y)7.48%
ROE(3y)15.89%
ROE(5y)14.6%
ROIC(3y)8.84%
ROIC(5y)8.31%
ROICexc(3y)9.68%
ROICexc(5y)9.03%
ROICexgc(3y)50.22%
ROICexgc(5y)46.23%
ROCE(3y)12.03%
ROCE(5y)11.31%
ROICexcg growth 3Y2.26%
ROICexcg growth 5Y-0.67%
ROICexc growth 3Y4.04%
ROICexc growth 5Y0.68%
OM growth 3Y0.62%
OM growth 5Y0.1%
PM growth 3Y-4.85%
PM growth 5Y1.22%
GM growth 3Y2.07%
GM growth 5Y-0.91%
F-Score5
Asset Turnover1.22
Health
Industry RankSector 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 3.57
F-Score5
WACC10.65%
ROIC/WACC0.72
Cap/Depr(3y)39.85%
Cap/Depr(5y)38.35%
Cap/Sales(3y)0.86%
Cap/Sales(5y)0.89%
Profit Quality(3y)109.92%
Profit Quality(5y)137.23%
High Growth Momentum
Growth
EPS 1Y (TTM)-12.34%
EPS 3Y8.09%
EPS 5Y6.85%
EPS Q2Q%-14.88%
EPS Next Y-13.74%
EPS Next 2Y-3.8%
EPS Next 3Y3.25%
EPS Next 5Y8.41%
Revenue 1Y (TTM)-7.47%
Revenue growth 3Y8.32%
Revenue growth 5Y5.53%
Sales Q2Q%-7.68%
Revenue Next Year-7.13%
Revenue Next 2Y-2.74%
Revenue Next 3Y0.7%
Revenue Next 5Y2.99%
EBIT growth 1Y-15.49%
EBIT growth 3Y8.99%
EBIT growth 5Y5.64%
EBIT Next Year14.67%
EBIT Next 3Y9.81%
EBIT Next 5Y10.34%
FCF growth 1Y237.13%
FCF growth 3Y2.06%
FCF growth 5Y10.01%
OCF growth 1Y176.91%
OCF growth 3Y2.46%
OCF growth 5Y9.71%