PARSONS CORP (PSN)
US70202L1026 - Common Stock
We assign a fundamental rating of 6 out of 10 to PSN. PSN was compared to 81 industry peers in the Professional Services industry. Both the profitability and the financial health of PSN get a neutral evaluation. Nothing too spectacular is happening here. PSN is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make PSN suitable for growth investing!
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.
Each year in the past 5 years PSN has been profitable.
Each year in the past 5 years PSN had a positive operating cash flow.
1.2 Ratios
PSN has a Return On Assets of 1.45%. This is comparable to the rest of the industry: PSN outperforms 44.16% of its industry peers.
The Return On Equity of PSN (3.40%) is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 9.43%, PSN is doing good in the industry, outperforming 62.34% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PSN is significantly below the industry average of 12.35%.
The last Return On Invested Capital (9.43%) for PSN is above the 3 year average (4.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.45% | ||
| ROE | 3.4% | ||
| ROIC | 9.43% |
ROA(3y)2.44%
ROA(5y)2.66%
ROE(3y)5.05%
ROE(5y)5.59%
ROIC(3y)4.85%
ROIC(5y)4.17%
1.3 Margins
PSN's Profit Margin of 1.21% is in line compared to the rest of the industry. PSN outperforms 41.56% of its industry peers.
PSN's Profit Margin has declined in the last couple of years.
PSN has a Operating Margin of 7.31%. This is in the better half of the industry: PSN outperforms 62.34% of its industry peers.
In the last couple of years the Operating Margin of PSN has grown nicely.
The Gross Margin of PSN (21.56%) is worse than 76.62% of its industry peers.
PSN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.31% | ||
| PM (TTM) | 1.21% | ||
| GM | 21.56% |
OM growth 3Y16.46%
OM growth 5Y12.67%
PM growth 3Y5.61%
PM growth 5Y-14.13%
GM growth 3Y-0.33%
GM growth 5Y1.8%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PSN is creating some value.
Compared to 1 year ago, PSN has more shares outstanding
The number of shares outstanding for PSN has been increased compared to 5 years ago.
The debt/assets ratio for PSN has been reduced compared to a year ago.
2.2 Solvency
PSN has an Altman-Z score of 3.68. This indicates that PSN is financially healthy and has little risk of bankruptcy at the moment.
PSN's Altman-Z score of 3.68 is fine compared to the rest of the industry. PSN outperforms 67.53% of its industry peers.
The Debt to FCF ratio of PSN is 2.30, which is a good value as it means it would take PSN, 2.30 years of fcf income to pay off all of its debts.
PSN has a Debt to FCF ratio of 2.30. This is in the better half of the industry: PSN outperforms 72.73% of its industry peers.
PSN has a Debt/Equity ratio of 0.54. This is a neutral value indicating PSN is somewhat dependend on debt financing.
PSN has a Debt to Equity ratio (0.54) which is in line with its industry peers.
Although PSN does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.3 | ||
| Altman-Z | 3.68 |
ROIC/WACC1.09
WACC8.62%
2.3 Liquidity
PSN has a Current Ratio of 1.55. This is a normal value and indicates that PSN is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of PSN (1.55) is comparable to the rest of the industry.
PSN has a Quick Ratio of 1.55. This is a normal value and indicates that PSN is financially healthy and should not expect problems in meeting its short term obligations.
PSN's Quick ratio of 1.55 is in line compared to the rest of the industry. PSN outperforms 53.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.71% over the past year.
The Earnings Per Share has been decreasing by -9.19% on average over the past years.
The Revenue has grown by 28.88% in the past year. This is a very strong growth!
PSN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.20% yearly.
EPS 1Y (TTM)40.71%
EPS 3Y36%
EPS 5Y-9.19%
EPS Q2Q%37.68%
Revenue 1Y (TTM)28.88%
Revenue growth 3Y11.57%
Revenue growth 5Y9.2%
Sales Q2Q%27.6%
3.2 Future
Based on estimates for the next years, PSN will show a very strong growth in Earnings Per Share. The EPS will grow by 22.79% on average per year.
Based on estimates for the next years, PSN will show a quite strong growth in Revenue. The Revenue will grow by 14.63% on average per year.
EPS Next Y39.7%
EPS Next 2Y26.71%
EPS Next 3Y22.79%
EPS Next 5YN/A
Revenue Next Year27.96%
Revenue Next 2Y17.98%
Revenue Next 3Y14.63%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 31.56 indicates a quite expensive valuation of PSN.
62.34% of the companies in the same industry are cheaper than PSN, based on the Price/Earnings ratio.
PSN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.65.
Based on the Price/Forward Earnings ratio of 25.62, the valuation of PSN can be described as expensive.
PSN's Price/Forward Earnings is on the same level as the industry average.
PSN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.56 | ||
| Fwd PE | 25.62 |
4.2 Price Multiples
PSN's Enterprise Value to EBITDA ratio is in line with the industry average.
71.43% of the companies in the same industry are more expensive than PSN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.48 | ||
| EV/EBITDA | 18.38 |
4.3 Compensation for Growth
PSN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of PSN may justify a higher PE ratio.
A more expensive valuation may be justified as PSN's earnings are expected to grow with 22.79% in the coming years.
PEG (NY)0.79
PEG (5Y)N/A
EPS Next 2Y26.71%
EPS Next 3Y22.79%
5. Dividend
5.1 Amount
PSN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PARSONS CORP
NYSE:PSN (11/21/2024, 2:00:04 PM)
100.365
+5.06 (+5.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.66B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.56 | ||
| Fwd PE | 25.62 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.79
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.45% | ||
| ROE | 3.4% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.31% | ||
| PM (TTM) | 1.21% | ||
| GM | 21.56% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)40.71%
EPS 3Y36%
EPS 5Y
EPS Q2Q%
EPS Next Y39.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)28.88%
Revenue growth 3Y11.57%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y