PARSONS CORP (PSN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSN - US70202L1026 - Common Stock
68.17 USD
+2.42 (+3.68%)
69.06 USD
+0.89 (+1.31%)
Taking everything into account, PSN scores 4 out of 10 in our fundamental rating. PSN was compared to 86 industry peers in the Professional Services industry. PSN has an average financial health and profitability rating. PSN is quite expensive at the moment. It does show 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
Looking at the Return On Assets, with a value of 6.74%, PSN is in the better half of the industry, outperforming 65.12% of the companies in the same industry.
PSN has a Return On Equity of 15.12%. This is in the better half of the industry: PSN outperforms 67.44% of its industry peers.
PSN has a Return On Invested Capital (7.82%) which is in line with its industry peers.
PSN had an Average Return On Invested Capital over the past 3 years of 6.99%. This is below the industry average of 11.86%.
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
PSN has a Profit Margin of 5.96%. This is in the better half of the industry: PSN outperforms 66.28% of its industry peers.
In the last couple of years the Profit Margin of PSN has grown nicely.
PSN has a Operating Margin (6.33%) which is comparable to the rest of the industry.
PSN's Operating Margin has improved in the last couple of years.
The Gross Margin of PSN (22.05%) is worse 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PSN is destroying value.
The number of shares outstanding for PSN has been increased compared to 1 year ago.
The number of shares outstanding for PSN has been increased compared to 5 years ago.
PSN has a worse debt/assets ratio than last year.
2.2 Solvency
PSN has an Altman-Z score of 3.06. This indicates that PSN is financially healthy and has little risk of bankruptcy at the moment.
PSN has a Altman-Z score of 3.06. This is comparable to the rest of the industry: PSN outperforms 59.30% of its industry peers.
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.
With a decent Debt to FCF ratio value of 3.26, PSN is doing good in the industry, outperforming 68.60% of the companies in the same industry.
A Debt/Equity ratio of 0.49 indicates that PSN is not too dependend on debt financing.
PSN's Debt to Equity ratio of 0.49 is in line compared to the rest of the industry. PSN outperforms 45.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.97
WACC8.05%
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 of 1.67. This is comparable to the rest of the industry: PSN outperforms 59.30% of 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.
The Earnings Per Share has been growing by 13.84% on average over the past years. This is quite good.
PSN shows a decrease in Revenue. In the last year, the revenue decreased by -0.24%.
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.
Based on estimates for the next years, PSN will show a small growth in Revenue. The Revenue will grow by 2.65% on average per year.
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
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
A Price/Earnings ratio of 21.30 indicates a rather expensive valuation of PSN.
The rest of the industry has a similar Price/Earnings ratio as PSN.
The average S&P500 Price/Earnings ratio is at 27.00. PSN is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 19.73 indicates a rather expensive valuation of PSN.
PSN's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.70. PSN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.3 | ||
| Fwd PE | 19.73 |
4.2 Price Multiples
PSN's Enterprise Value to EBITDA is on the same level as 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 | 18.96 | ||
| EV/EBITDA | 14.97 |
4.3 Compensation for Growth
PSN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.54
EPS Next 2Y2.8%
EPS Next 3Y6.54%
5. Dividend
5.1 Amount
No dividends for PSN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
68.17
+2.42 (+3.68%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners107.32%
Inst Owner Change0%
Ins Owners1.09%
Ins Owner Change-1.61%
Market Cap7.26B
Revenue(TTM)6.49B
Net Income(TTM)386.84M
Analysts82.67
Price Target87.78 (28.77%)
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)-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 | 21.3 | ||
| Fwd PE | 19.73 | ||
| P/S | 1.12 | ||
| P/FCF | 18.96 | ||
| P/OCF | 16.59 | ||
| P/B | 2.84 | ||
| P/tB | 132.15 | ||
| EV/EBITDA | 14.97 |
EPS(TTM)3.2
EY4.69%
EPS(NY)3.46
Fwd EY5.07%
FCF(TTM)3.6
FCFY5.27%
OCF(TTM)4.11
OCFY6.03%
SpS60.99
BVpS24.02
TBVpS0.52
PEG (NY)N/A
PEG (5Y)1.54
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 | 3.06 |
F-Score7
WACC8.05%
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%.