ASGN INC (ASGN) Stock Fundamental Analysis
USA - NYSE:ASGN - US00191U1025 - Common Stock
44.98 USD
+0.67 (+1.51%)
44.98 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to ASGN. ASGN was compared to 85 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 is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
ASGN had positive earnings in the past year.
ASGN had a positive operating cash flow in the past year.
In the past 5 years ASGN has always been profitable.
Each year in the past 5 years ASGN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ASGN (3.77%) is better than 63.53% of its industry peers.
ASGN has a Return On Equity of 7.67%. This is in the better half of the industry: ASGN outperforms 62.35% of its industry peers.
ASGN has a Return On Invested Capital of 5.97%. This is in the better half of the industry: ASGN outperforms 62.35% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ASGN is significantly below the industry average of 27.96%.
| 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 has a Profit Margin (3.50%) which is in line with its industry peers.
ASGN's Profit Margin has declined in the last couple of years.
The Operating Margin of ASGN (6.67%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of ASGN has declined.
ASGN's Gross Margin of 28.84% is on the low side compared to the rest of the industry. ASGN is outperformed by 64.71% 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 | 6.67% | ||
| 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
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.
The number of shares outstanding for ASGN has been reduced compared to 5 years ago.
ASGN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.50 indicates that ASGN is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ASGN (2.50) is comparable to the rest of the industry.
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.
ASGN has a Debt to FCF ratio of 3.57. This is in the better half of the industry: ASGN outperforms 62.35% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that ASGN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.66, ASGN is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 2.5 |
ROIC/WACC0.7
WACC8.47%
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.
ASGN has a Current ratio of 2.11. This is in the better half of the industry: ASGN outperforms 61.18% of its industry peers.
A Quick Ratio of 2.11 indicates that ASGN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.11, ASGN is in the better half of the industry, outperforming 62.35% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing slightly by 2.16% on average over the past years.
Looking at the last year, ASGN shows a decrease in Revenue. The Revenue has decreased by -4.86% in the last year.
The Revenue has been growing slightly by 3.72% on average over the past years.
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 4.24% 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 1.46% yearly.
EPS Next Y-12.54%
EPS Next 2Y-1.08%
EPS Next 3Y4.24%
EPS Next 5YN/A
Revenue Next Year-3.48%
Revenue Next 2Y-0.66%
Revenue Next 3Y1.46%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 9.61, the valuation of ASGN can be described as reasonable.
Based on the Price/Earnings ratio, ASGN is valued cheaply inside the industry as 89.41% of the companies are valued more expensively.
ASGN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.13.
A Price/Forward Earnings ratio of 8.79 indicates a reasonable valuation of ASGN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ASGN indicates a rather cheap valuation: ASGN is cheaper than 91.76% 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 (22.35), we can say ASGN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.61 | ||
| Fwd PE | 8.79 |
4.2 Price Multiples
83.53% of the companies in the same industry are more expensive than ASGN, based on the Enterprise Value to EBITDA ratio.
95.29% 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 | 5.81 | ||
| EV/EBITDA | 8.18 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.45
EPS Next 2Y-1.08%
EPS Next 3Y4.24%
5. Dividend
5.1 Amount
No dividends for ASGN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
44.98
+0.67 (+1.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners98.61%
Inst Owner Change-0.23%
Ins Owners3.59%
Ins Owner Change-0.02%
Market Cap1.97B
Revenue(TTM)3.99B
Net Income(TTM)140.10M
Analysts72.31
Price Target54.23 (20.56%)
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)-10.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.59%
EPS NY rev (1m)0%
EPS NY rev (3m)1.52%
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 | 9.61 | ||
| Fwd PE | 8.79 | ||
| P/S | 0.49 | ||
| P/FCF | 5.81 | ||
| P/OCF | 5.22 | ||
| P/B | 1.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.18 |
EPS(TTM)4.68
EY10.4%
EPS(NY)5.12
Fwd EY11.38%
FCF(TTM)7.74
FCFY17.22%
OCF(TTM)8.62
OCFY19.17%
SpS91.44
BVpS41.71
TBVpS-18.3
PEG (NY)N/A
PEG (5Y)4.45
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 | 2.5 |
F-Score5
WACC8.47%
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-12.54%
EPS Next 2Y-1.08%
EPS Next 3Y4.24%
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-0.66%
Revenue Next 3Y1.46%
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.