PARSONS CORP (PSN) Stock Fundamental Analysis
NYSE:PSN - New York Stock Exchange, Inc. - US70202L1026 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to PSN. PSN was compared to 82 industry peers in the Professional Services industry. While PSN has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, PSN is valued expensive at the moment.
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.
In the past 5 years PSN always reported a positive cash flow from operatings.
1.2 Ratios
PSN has a better Return On Assets (7.49%) than 73.17% of its industry peers.
With a decent Return On Equity value of 16.63%, PSN is doing good in the industry, outperforming 67.07% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.96%, PSN is in the better half of the industry, outperforming 67.07% 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 12.36%.
The last Return On Invested Capital (8.96%) for PSN is above the 3 year average (6.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.49% | ||
| ROE | 16.63% | ||
| ROIC | 8.96% |
ROA(3y)3.31%
ROA(5y)2.82%
ROE(3y)7.17%
ROE(5y)6.06%
ROIC(3y)6.99%
ROIC(5y)5.6%
1.3 Margins
PSN has a better Profit Margin (6.03%) than 69.51% of its industry peers.
In the last couple of years the Profit Margin of PSN has grown nicely.
Looking at the Operating Margin, with a value of 6.74%, PSN is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
PSN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 21.21%, PSN is doing worse than 70.73% of the companies in the same industry.
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 | 6.74% | ||
| PM (TTM) | 6.03% | ||
| GM | 21.21% |
OM growth 3Y36.85%
OM growth 5Y34.22%
PM growth 3Y25.74%
PM growth 5Y2.7%
GM growth 3Y-3.65%
GM growth 5Y-0.19%
2. Health
2.1 Basic Checks
PSN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
PSN has more shares outstanding than it did 1 year ago.
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 3.37 indicates that PSN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.37, PSN is in the better half of the industry, outperforming 62.20% of the companies in the same industry.
PSN has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as PSN would need 2.36 years to pay back of all of its debts.
The Debt to FCF ratio of PSN (2.36) is better than 68.29% of its industry peers.
PSN has a Debt/Equity ratio of 0.50. This is a neutral value indicating PSN is somewhat dependend on debt financing.
PSN has a Debt to Equity ratio (0.50) which is comparable to the rest of the industry.
Even though the debt/equity ratio score it not favorable for PSN, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 3.37 |
ROIC/WACC1.05
WACC8.52%
2.3 Liquidity
PSN has a Current Ratio of 1.29. 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 Current ratio (1.29) which is in line with its industry peers.
PSN has a Quick Ratio of 1.29. This is a normal value and indicates that PSN is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.29, PSN perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
PSN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.62%, which is quite impressive.
PSN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.84% yearly.
PSN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.61%.
The Revenue has been growing by 11.29% on average over the past years. This is quite good.
EPS 1Y (TTM)23.62%
EPS 3Y32.68%
EPS 5Y13.84%
EPS Q2Q%11.43%
Revenue 1Y (TTM)16.61%
Revenue growth 3Y22.63%
Revenue growth 5Y11.29%
Sales Q2Q%1.22%
3.2 Future
Based on estimates for the next years, PSN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.37% on average per year.
PSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.85% yearly.
EPS Next Y-0.54%
EPS Next 2Y3.49%
EPS Next 3Y8.37%
EPS Next 5YN/A
Revenue Next Year-1.52%
Revenue Next 2Y0.81%
Revenue Next 3Y3.85%
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
PSN is valuated rather expensively with a Price/Earnings ratio of 22.36.
Compared to the rest of the industry, the Price/Earnings ratio of PSN is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.30, PSN is valued at the same level.
With a Price/Forward Earnings ratio of 21.38, PSN is valued on the expensive side.
PSN's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, PSN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.36 | ||
| Fwd PE | 21.38 |
4.2 Price Multiples
PSN's Enterprise Value to EBITDA ratio is in line with the industry average.
68.29% 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 | 15.32 | ||
| EV/EBITDA | 15.31 |
4.3 Compensation for Growth
The decent profitability rating of PSN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.61
EPS Next 2Y3.49%
EPS Next 3Y8.37%
5. Dividend
5.1 Amount
No dividends for PSN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
74.89
+0.55 (+0.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners102.47%
Inst Owner Change-0.02%
Ins Owners1.1%
Ins Owner Change13.81%
Market Cap8.00B
Analysts76
Price Target81.72 (9.12%)
Short Float %5.83%
Short Ratio4.14
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)1
Avg EPS beat(2)-5.67%
Min EPS beat(2)-15.41%
Max EPS beat(2)4.08%
EPS beat(4)3
Avg EPS beat(4)6.48%
Min EPS beat(4)-15.41%
Max EPS beat(4)19.84%
EPS beat(8)7
Avg EPS beat(8)10.05%
EPS beat(12)7
Avg EPS beat(12)5.5%
EPS beat(16)9
Avg EPS beat(16)1.56%
Revenue beat(2)0
Avg Revenue beat(2)-3.81%
Min Revenue beat(2)-5.34%
Max Revenue beat(2)-2.29%
Revenue beat(4)2
Avg Revenue beat(4)2.26%
Min Revenue beat(4)-5.34%
Max Revenue beat(4)9.5%
Revenue beat(8)6
Avg Revenue beat(8)7.67%
Revenue beat(12)10
Avg Revenue beat(12)7.38%
Revenue beat(16)11
Avg Revenue beat(16)5.09%
PT rev (1m)-0.14%
PT rev (3m)-9.2%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-15.11%
EPS NY rev (1m)-8.72%
EPS NY rev (3m)-12.02%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-8.44%
Revenue NY rev (1m)-5.02%
Revenue NY rev (3m)-7.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.36 | ||
| Fwd PE | 21.38 | ||
| P/S | 1.18 | ||
| P/FCF | 15.32 | ||
| P/OCF | 13.92 | ||
| P/B | 3.26 | ||
| P/tB | 1143.36 | ||
| EV/EBITDA | 15.31 |
EPS(TTM)3.35
EY4.47%
EPS(NY)3.5
Fwd EY4.68%
FCF(TTM)4.89
FCFY6.53%
OCF(TTM)5.38
OCFY7.18%
SpS63.34
BVpS22.96
TBVpS0.07
PEG (NY)N/A
PEG (5Y)1.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.49% | ||
| ROE | 16.63% | ||
| ROCE | 12.72% | ||
| ROIC | 8.96% | ||
| ROICexc | 9.6% | ||
| ROICexgc | 27.64% | ||
| OM | 6.74% | ||
| PM (TTM) | 6.03% | ||
| GM | 21.21% | ||
| FCFM | 7.72% |
ROA(3y)3.31%
ROA(5y)2.82%
ROE(3y)7.17%
ROE(5y)6.06%
ROIC(3y)6.99%
ROIC(5y)5.6%
ROICexc(3y)7.72%
ROICexc(5y)6.29%
ROICexgc(3y)23.64%
ROICexgc(5y)18.97%
ROCE(3y)9.34%
ROCE(5y)7.4%
ROICexcg growth 3Y51.02%
ROICexcg growth 5Y39.5%
ROICexc growth 3Y48.02%
ROICexc growth 5Y34.54%
OM growth 3Y36.85%
OM growth 5Y34.22%
PM growth 3Y25.74%
PM growth 5Y2.7%
GM growth 3Y-3.65%
GM growth 5Y-0.19%
F-Score7
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.36 | ||
| Debt/EBITDA | 2.2 | ||
| Cap/Depr | 52.04% | ||
| Cap/Sales | 0.78% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.23% | ||
| Profit Quality | 128.05% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 3.37 |
F-Score7
WACC8.52%
ROIC/WACC1.05
Cap/Depr(3y)36.07%
Cap/Depr(5y)29.88%
Cap/Sales(3y)0.73%
Cap/Sales(5y)0.73%
Profit Quality(3y)214.89%
Profit Quality(5y)238.32%
High Growth Momentum
Growth
EPS 1Y (TTM)23.62%
EPS 3Y32.68%
EPS 5Y13.84%
EPS Q2Q%11.43%
EPS Next Y-0.54%
EPS Next 2Y3.49%
EPS Next 3Y8.37%
EPS Next 5YN/A
Revenue 1Y (TTM)16.61%
Revenue growth 3Y22.63%
Revenue growth 5Y11.29%
Sales Q2Q%1.22%
Revenue Next Year-1.52%
Revenue Next 2Y0.81%
Revenue Next 3Y3.85%
Revenue Next 5YN/A
EBIT growth 1Y19.04%
EBIT growth 3Y67.82%
EBIT growth 5Y49.37%
EBIT Next Year46.62%
EBIT Next 3Y21.35%
EBIT Next 5YN/A
FCF growth 1Y137.47%
FCF growth 3Y37.06%
FCF growth 5Y25.5%
OCF growth 1Y126.2%
OCF growth 3Y36.6%
OCF growth 5Y18.93%