PARSONS CORP (PSN) Stock Fundamental Analysis
USA - NYSE:PSN - US70202L1026 - Common Stock
81.9 USD
+0.47 (+0.58%)
81.9 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to PSN. PSN was compared to 82 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. While showing a medium growth rate, PSN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year PSN was profitable.
PSN had a positive operating cash flow in the past year.
PSN had positive earnings in each of the past 5 years.
PSN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PSN has a better Return On Assets (6.90%) than 68.29% of its industry peers.
PSN's Return On Equity of 15.69% is fine compared to the rest of the industry. PSN outperforms 67.07% of its industry peers.
The Return On Invested Capital of PSN (8.00%) is comparable to the rest of the industry.
PSN had an Average Return On Invested Capital over the past 3 years of 6.99%. This is significantly below the industry average of 12.76%.
The 3 year average ROIC (6.99%) for PSN is below the current ROIC(8.00%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 15.69% | ||
| ROIC | 8% |
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
Looking at the Profit Margin, with a value of 5.91%, PSN is in the better half of the industry, outperforming 68.29% of the companies in the same industry.
In the last couple of years the Profit Margin of PSN has grown nicely.
Looking at the Operating Margin, with a value of 6.37%, PSN is in line with its industry, outperforming 56.10% of the companies in the same industry.
In the last couple of years the Operating Margin of PSN has grown nicely.
PSN has a Gross Margin of 21.43%. This is in the lower half of the industry: PSN underperforms 69.51% of its industry peers.
PSN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.37% | ||
| PM (TTM) | 5.91% | ||
| GM | 21.43% |
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.
The number of shares outstanding for PSN has been increased compared to 1 year ago.
PSN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PSN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.38 indicates that PSN is not in any danger for bankruptcy at the moment.
PSN's Altman-Z score of 3.38 is fine compared to the rest of the industry. PSN outperforms 60.98% of its industry peers.
The Debt to FCF ratio of PSN is 2.56, which is a good value as it means it would take PSN, 2.56 years of fcf income to pay off all of its debts.
PSN has a better Debt to FCF ratio (2.56) than 64.63% of its industry peers.
A Debt/Equity ratio of 0.53 indicates that PSN is somewhat dependend on debt financing.
PSN has a Debt to Equity ratio (0.53) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.56 | ||
| Altman-Z | 3.38 |
ROIC/WACC0.98
WACC8.15%
2.3 Liquidity
A Current Ratio of 1.61 indicates that PSN should not have too much problems paying its short term obligations.
PSN has a better Current ratio (1.61) than 62.20% of its industry peers.
A Quick Ratio of 1.61 indicates that PSN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.61, PSN is in the better half of the industry, outperforming 64.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.67% over the past year.
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.
PSN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.22%.
PSN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.29% yearly.
EPS 1Y (TTM)12.67%
EPS 3Y32.68%
EPS 5Y13.84%
EPS Q2Q%-7.14%
Revenue 1Y (TTM)9.22%
Revenue growth 3Y22.63%
Revenue growth 5Y11.29%
Sales Q2Q%-5.16%
3.2 Future
Based on estimates for the next years, PSN will show a small growth in Earnings Per Share. The EPS will grow by 7.12% on average per year.
The Revenue is expected to grow by 2.82% on average over the next years.
EPS Next Y-0.58%
EPS Next 2Y4.54%
EPS Next 3Y7.12%
EPS Next 5YN/A
Revenue Next Year-2.97%
Revenue Next 2Y1.41%
Revenue Next 3Y2.82%
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 decreasing.
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
Based on the Price/Earnings ratio of 24.89, the valuation of PSN can be described as rather expensive.
PSN's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.38, PSN is valued at the same level.
PSN is valuated rather expensively with a Price/Forward Earnings ratio of 22.92.
The rest of the industry has a similar Price/Forward Earnings ratio as PSN.
PSN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.89 | ||
| Fwd PE | 22.92 |
4.2 Price Multiples
PSN's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, PSN is valued a bit cheaper than the industry average as 68.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.8 | ||
| EV/EBITDA | 17.92 |
4.3 Compensation for Growth
The decent profitability rating of PSN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.8
EPS Next 2Y4.54%
EPS Next 3Y7.12%
5. Dividend
5.1 Amount
No dividends for PSN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
81.9
+0.47 (+0.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners103.55%
Inst Owner Change2.57%
Ins Owners1.1%
Ins Owner Change1.89%
Market Cap8.75B
Analysts80
Price Target88.79 (8.41%)
Short Float %5.78%
Short Ratio6.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)4.33%
Min EPS beat(2)4.08%
Max EPS beat(2)4.59%
EPS beat(4)3
Avg EPS beat(4)2.67%
Min EPS beat(4)-15.41%
Max EPS beat(4)17.43%
EPS beat(8)7
Avg EPS beat(8)7.72%
EPS beat(12)8
Avg EPS beat(12)5.98%
EPS beat(16)10
Avg EPS beat(16)4.21%
Revenue beat(2)0
Avg Revenue beat(2)-3.59%
Min Revenue beat(2)-5.34%
Max Revenue beat(2)-1.84%
Revenue beat(4)1
Avg Revenue beat(4)0.01%
Min Revenue beat(4)-5.34%
Max Revenue beat(4)9.5%
Revenue beat(8)5
Avg Revenue beat(8)5.06%
Revenue beat(12)9
Avg Revenue beat(12)6.6%
Revenue beat(16)11
Avg Revenue beat(16)5.69%
PT rev (1m)3.91%
PT rev (3m)7.75%
EPS NQ rev (1m)-2.99%
EPS NQ rev (3m)-9.03%
EPS NY rev (1m)0.64%
EPS NY rev (3m)-8.75%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-3.05%
Revenue NY rev (1m)-0.66%
Revenue NY rev (3m)-6.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.89 | ||
| Fwd PE | 22.92 | ||
| P/S | 1.31 | ||
| P/FCF | 16.8 | ||
| P/OCF | 15.25 | ||
| P/B | 3.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.92 |
EPS(TTM)3.29
EY4.02%
EPS(NY)3.57
Fwd EY4.36%
FCF(TTM)4.87
FCFY5.95%
OCF(TTM)5.37
OCFY6.56%
SpS62.58
BVpS23.56
TBVpS-0.07
PEG (NY)N/A
PEG (5Y)1.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.9% | ||
| ROE | 15.69% | ||
| ROCE | 10.34% | ||
| ROIC | 8% | ||
| ROICexc | 8.86% | ||
| ROICexgc | 26.56% | ||
| OM | 6.37% | ||
| PM (TTM) | 5.91% | ||
| GM | 21.43% | ||
| FCFM | 7.79% |
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%
ROICexcg growth 3Y50.98%
ROICexcg 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 Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.56 | ||
| Debt/EBITDA | 2.5 | ||
| Cap/Depr | 50% | ||
| Cap/Sales | 0.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 107.88% | ||
| Profit Quality | 131.88% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 3.38 |
F-Score7
WACC8.15%
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)12.67%
EPS 3Y32.68%
EPS 5Y13.84%
EPS Q2Q%-7.14%
EPS Next Y-0.58%
EPS Next 2Y4.54%
EPS Next 3Y7.12%
EPS Next 5YN/A
Revenue 1Y (TTM)9.22%
Revenue growth 3Y22.63%
Revenue growth 5Y11.29%
Sales Q2Q%-5.16%
Revenue Next Year-2.97%
Revenue Next 2Y1.41%
Revenue Next 3Y2.82%
Revenue Next 5YN/A
EBIT growth 1Y-2.09%
EBIT growth 3Y67.83%
EBIT growth 5Y49.38%
EBIT Next Year40.46%
EBIT Next 3Y19.15%
EBIT Next 5YN/A
FCF growth 1Y172.23%
FCF growth 3Y37%
FCF growth 5Y25.46%
OCF growth 1Y153.59%
OCF growth 3Y36.56%
OCF growth 5Y18.92%