PARSONS CORP (PSN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSN - US70202L1026 - Common Stock
61.8 USD
-0.45 (-0.72%)
61.8 USD
0 (0%)
PSN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 86 industry peers in the Professional Services industry. PSN has an average financial health and profitability rating. PSN is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
PSN had positive earnings in the past year.
PSN had a positive operating cash flow in the past year.
In the past 5 years PSN has always been profitable.
Each year in the past 5 years PSN had a positive operating cash flow.
1.2 Ratios
PSN's Return On Assets of 6.74% is fine compared to the rest of the industry. PSN outperforms 65.12% of its industry peers.
PSN has a better Return On Equity (15.12%) than 67.44% of its industry peers.
PSN has a Return On Invested Capital of 7.82%. This is comparable to the rest of the industry: PSN outperforms 56.98% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PSN is significantly below the industry average of 12.04%.
The 3 year average ROIC (6.99%) for PSN is below the current ROIC(7.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.74% | ||
| ROE | 15.12% | ||
| ROIC | 7.82% |
ROA(3y)3.31%
ROA(5y)2.82%
ROE(3y)7.17%
ROE(5y)6.06%
ROIC(3y)6.99%
ROIC(5y)5.59%
1.3 Margins
PSN has a better Profit Margin (5.96%) than 66.28% of its industry peers.
In the last couple of years the Profit Margin of PSN has grown nicely.
The Operating Margin of PSN (6.33%) is comparable to the rest of the industry.
PSN's Operating Margin has improved in the last couple of years.
PSN has a worse Gross Margin (22.05%) than 68.60% of its industry peers.
PSN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.33% | ||
| PM (TTM) | 5.96% | ||
| GM | 22.05% |
OM growth 3Y36.86%
OM growth 5Y34.23%
PM growth 3Y25.75%
PM growth 5Y2.71%
GM growth 3Y-3.65%
GM growth 5Y-0.19%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PSN is destroying value.
Compared to 1 year ago, PSN has more shares outstanding
Compared to 5 years ago, PSN has more shares outstanding
PSN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.98 indicates that PSN is not a great score, but indicates only limited risk for bankruptcy at the moment.
PSN has a Altman-Z score of 2.98. This is comparable to the rest of the industry: PSN outperforms 58.14% of its industry peers.
PSN has a debt to FCF ratio of 3.26. This is a good value and a sign of high solvency as PSN would need 3.26 years to pay back of all of its debts.
PSN has a better Debt to FCF ratio (3.26) than 68.60% of its industry peers.
PSN has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
PSN has a Debt to Equity ratio (0.49) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 2.98 |
ROIC/WACC0.98
WACC7.97%
2.3 Liquidity
A Current Ratio of 1.67 indicates that PSN should not have too much problems paying its short term obligations.
The Current ratio of PSN (1.67) is comparable to the rest of the industry.
PSN has a Quick Ratio of 1.67. This is a normal value and indicates that PSN is financially healthy and should not expect problems in meeting its short term obligations.
PSN has a Quick ratio (1.67) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
PSN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.63%.
Measured over the past years, PSN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.84% on average per year.
Looking at the last year, PSN shows a decrease in Revenue. The Revenue has decreased by -0.24% in the last year.
Measured over the past years, PSN shows a quite strong growth in Revenue. The Revenue has been growing by 11.29% on average per year.
EPS 1Y (TTM)0.63%
EPS 3Y32.68%
EPS 5Y13.84%
EPS Q2Q%-9.47%
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y22.63%
Revenue growth 5Y11.29%
Sales Q2Q%-10.41%
3.2 Future
PSN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.54% yearly.
PSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.65% yearly.
EPS Next Y-0.34%
EPS Next 2Y2.8%
EPS Next 3Y6.54%
EPS Next 5YN/A
Revenue Next Year-4.84%
Revenue Next 2Y-0.38%
Revenue Next 3Y2.65%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 19.31, PSN is valued on the expensive side.
Based on the Price/Earnings ratio, PSN is valued a bit cheaper than the industry average as 61.63% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.51, PSN is valued a bit cheaper.
PSN is valuated rather expensively with a Price/Forward Earnings ratio of 17.88.
PSN's Price/Forward Earnings ratio is in line with the industry average.
PSN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.31 | ||
| Fwd PE | 17.88 |
4.2 Price Multiples
PSN's Enterprise Value to EBITDA ratio is in line with the industry average.
PSN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PSN is cheaper than 72.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.19 | ||
| EV/EBITDA | 14.17 |
4.3 Compensation for Growth
The decent profitability rating of PSN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.4
EPS Next 2Y2.8%
EPS Next 3Y6.54%
5. Dividend
5.1 Amount
PSN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
61.8
-0.45 (-0.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners107.41%
Inst Owner Change11.97%
Ins Owners1.1%
Ins Owner Change-1.51%
Market Cap6.58B
Revenue(TTM)6.49B
Net Income(TTM)386.84M
Analysts82.67
Price Target87.78 (42.04%)
Short Float %4.83%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.98%
Min EPS beat(2)4.59%
Max EPS beat(2)13.38%
EPS beat(4)3
Avg EPS beat(4)1.66%
Min EPS beat(4)-15.41%
Max EPS beat(4)13.38%
EPS beat(8)7
Avg EPS beat(8)8.02%
EPS beat(12)9
Avg EPS beat(12)7.6%
EPS beat(16)11
Avg EPS beat(16)5.67%
Revenue beat(2)0
Avg Revenue beat(2)-2.71%
Min Revenue beat(2)-3.58%
Max Revenue beat(2)-1.84%
Revenue beat(4)0
Avg Revenue beat(4)-3.26%
Min Revenue beat(4)-5.34%
Max Revenue beat(4)-1.84%
Revenue beat(8)4
Avg Revenue beat(8)3.24%
Revenue beat(12)8
Avg Revenue beat(12)5.64%
Revenue beat(16)11
Avg Revenue beat(16)5.54%
PT rev (1m)-7.71%
PT rev (3m)-1.14%
EPS NQ rev (1m)-1.76%
EPS NQ rev (3m)-12.05%
EPS NY rev (1m)0.43%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-4.92%
Revenue NY rev (1m)-1.93%
Revenue NY rev (3m)-1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.31 | ||
| Fwd PE | 17.88 | ||
| P/S | 1.01 | ||
| P/FCF | 17.19 | ||
| P/OCF | 15.04 | ||
| P/B | 2.57 | ||
| P/tB | 119.8 | ||
| EV/EBITDA | 14.17 |
EPS(TTM)3.2
EY5.18%
EPS(NY)3.46
Fwd EY5.59%
FCF(TTM)3.6
FCFY5.82%
OCF(TTM)4.11
OCFY6.65%
SpS60.99
BVpS24.02
TBVpS0.52
PEG (NY)N/A
PEG (5Y)1.4
Graham Number41.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.74% | ||
| ROE | 15.12% | ||
| ROCE | 9.91% | ||
| ROIC | 7.82% | ||
| ROICexc | 8.7% | ||
| ROICexgc | 26.51% | ||
| OM | 6.33% | ||
| PM (TTM) | 5.96% | ||
| GM | 22.05% | ||
| FCFM | 5.89% |
ROA(3y)3.31%
ROA(5y)2.82%
ROE(3y)7.17%
ROE(5y)6.06%
ROIC(3y)6.99%
ROIC(5y)5.59%
ROICexc(3y)7.72%
ROICexc(5y)6.29%
ROICexgc(3y)23.62%
ROICexgc(5y)18.96%
ROCE(3y)9.34%
ROCE(5y)7.4%
ROICexgc growth 3Y50.98%
ROICexgc growth 5Y39.48%
ROICexc growth 3Y48.02%
ROICexc growth 5Y34.54%
OM growth 3Y36.86%
OM growth 5Y34.23%
PM growth 3Y25.75%
PM growth 5Y2.71%
GM growth 3Y-3.65%
GM growth 5Y-0.19%
F-Score7
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.26 | ||
| Debt/EBITDA | 2.38 | ||
| Cap/Depr | 49.11% | ||
| Cap/Sales | 0.84% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.73% | ||
| Profit Quality | 98.96% | ||
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z | 2.98 |
F-Score7
WACC7.97%
ROIC/WACC0.98
Cap/Depr(3y)36.22%
Cap/Depr(5y)29.97%
Cap/Sales(3y)0.73%
Cap/Sales(5y)0.73%
Profit Quality(3y)214.57%
Profit Quality(5y)238.13%
High Growth Momentum
Growth
EPS 1Y (TTM)0.63%
EPS 3Y32.68%
EPS 5Y13.84%
EPS Q2Q%-9.47%
EPS Next Y-0.34%
EPS Next 2Y2.8%
EPS Next 3Y6.54%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y22.63%
Revenue growth 5Y11.29%
Sales Q2Q%-10.41%
Revenue Next Year-4.84%
Revenue Next 2Y-0.38%
Revenue Next 3Y2.65%
Revenue Next 5YN/A
EBIT growth 1Y-13.59%
EBIT growth 3Y67.83%
EBIT growth 5Y49.38%
EBIT Next Year38.7%
EBIT Next 3Y17.17%
EBIT Next 5YN/A
FCF growth 1Y44.47%
FCF growth 3Y37%
FCF growth 5Y25.46%
OCF growth 1Y42.69%
OCF growth 3Y36.56%
OCF growth 5Y18.92%
PARSONS CORP / PSN FAQ
What is the ChartMill fundamental rating of PARSONS CORP (PSN) stock?
ChartMill assigns a fundamental rating of 4 / 10 to PSN.
What is the valuation status of PARSONS CORP (PSN) stock?
ChartMill assigns a valuation rating of 4 / 10 to PARSONS CORP (PSN). This can be considered as Fairly Valued.
Can you provide the profitability details for PARSONS CORP?
PARSONS CORP (PSN) has a profitability rating of 6 / 10.
What is the expected EPS growth for PARSONS CORP (PSN) stock?
The Earnings per Share (EPS) of PARSONS CORP (PSN) is expected to decline by -0.34% in the next year.
Is the dividend of PARSONS CORP sustainable?
The dividend rating of PARSONS CORP (PSN) is 0 / 10 and the dividend payout ratio is 0%.