PARSONS CORP (PSN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSN - US70202L1026 - Common Stock
72.22 USD
+1.85 (+2.63%)
72.22 USD
0 (0%)
Overall PSN gets a fundamental rating of 4 out of 10. We evaluated PSN against 87 industry peers in the Professional Services industry. PSN has an average financial health and profitability rating. 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.
- In the past year PSN had a positive cash flow from operations.
- Each year in the past 5 years PSN has been profitable.
- In the past 5 years PSN always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of PSN (6.74%) is better than 65.52% of its industry peers.
- Looking at the Return On Equity, with a value of 15.12%, PSN is in the better half of the industry, outperforming 67.82% of the companies in the same industry.
- PSN has a Return On Invested Capital of 7.82%. This is comparable to the rest of the industry: PSN outperforms 57.47% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for PSN is below the industry average of 11.85%.
- The last Return On Invested Capital (7.82%) for PSN is above the 3 year average (6.99%), which is a sign of increasing profitability.
| 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
- The Profit Margin of PSN (5.96%) is better than 66.67% of its industry peers.
- In the last couple of years the Profit Margin of PSN has grown nicely.
- PSN has a Operating Margin of 6.33%. This is comparable to the rest of the industry: PSN outperforms 55.17% of its industry peers.
- PSN's Operating Margin has improved in the last couple of years.
- The Gross Margin of PSN (22.05%) is worse than 67.82% of its industry peers.
- In the last couple of years the Gross Margin of PSN has remained more or less at the same level.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PSN is destroying 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.
- Compared to 1 year ago, PSN has a worse debt to assets ratio.
2.2 Solvency
- PSN has an Altman-Z score of 3.19. This indicates that PSN is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 3.19, PSN is doing good in the industry, outperforming 60.92% of the companies in the same industry.
- The Debt to FCF ratio of PSN is 3.26, which is a good value as it means it would take PSN, 3.26 years of fcf income to pay off all of its debts.
- PSN has a Debt to FCF ratio of 3.26. This is in the better half of the industry: PSN outperforms 68.97% of its industry peers.
- A Debt/Equity ratio of 0.49 indicates that PSN is not too dependend on debt financing.
- PSN has a Debt to Equity ratio of 0.49. This is comparable to the rest of the industry: PSN outperforms 45.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 3.19 |
ROIC/WACC0.97
WACC8.09%
2.3 Liquidity
- PSN has a Current 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's Current ratio of 1.67 is in line compared to the rest of the industry. PSN outperforms 59.77% of its industry peers.
- A Quick Ratio of 1.67 indicates that PSN should not have too much problems paying 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
- The Earnings Per Share has been growing slightly by 0.63% 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.
- The Revenue has decreased by -0.24% in the past year.
- The Revenue has been growing by 11.29% on average over the past years. This is quite good.
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
- Based on estimates for the next years, PSN will show a small growth in Earnings Per Share. The EPS will grow by 6.54% on average per year.
- 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
- PSN is valuated rather expensively with a Price/Earnings ratio of 22.57.
- The rest of the industry has a similar Price/Earnings ratio as PSN.
- PSN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.54.
- With a Price/Forward Earnings ratio of 20.90, PSN is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PSN is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.31, PSN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.57 | ||
| Fwd PE | 20.9 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as PSN.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PSN indicates a somewhat cheap valuation: PSN is cheaper than 72.41% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.09 | ||
| EV/EBITDA | 16.29 |
4.3 Compensation for Growth
- The decent profitability rating of PSN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.63
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% |
72.22
+1.85 (+2.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)11-05 2025-11-05/bmo
Earnings (Next)02-17 2026-02-17/amc
Inst Owners107.32%
Inst Owner Change0.03%
Ins Owners1.09%
Ins Owner Change-1.53%
Market Cap7.69B
Revenue(TTM)6.49B
Net Income(TTM)386.84M
Analysts82.22
Price Target87.78 (21.55%)
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)-7.74%
PT rev (3m)-2.04%
EPS NQ rev (1m)-1.76%
EPS NQ rev (3m)-12.05%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-4.92%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.57 | ||
| Fwd PE | 20.9 | ||
| P/S | 1.18 | ||
| P/FCF | 20.09 | ||
| P/OCF | 17.57 | ||
| P/B | 3.01 | ||
| P/tB | 140 | ||
| EV/EBITDA | 16.29 |
EPS(TTM)3.2
EY4.43%
EPS(NY)3.46
Fwd EY4.78%
FCF(TTM)3.6
FCFY4.98%
OCF(TTM)4.11
OCFY5.69%
SpS60.99
BVpS24.02
TBVpS0.52
PEG (NY)N/A
PEG (5Y)1.63
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 | 3.19 |
F-Score7
WACC8.09%
ROIC/WACC0.97
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 3 / 10 to PARSONS CORP (PSN). This can be considered as Overvalued.
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%.