PARSONS CORP (PSN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSN - US70202L1026 - Common Stock
71.24 USD
-1.23 (-1.7%)
71.24 USD
0 (0%)
Overall PSN gets a fundamental rating of 4 out of 10. We evaluated PSN against 88 industry peers in the Professional Services industry. PSN has only an average score on both its financial health and profitability. PSN is quite expensive at the moment. It does show a decent growth rate.
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.
- PSN had positive earnings in each of the past 5 years.
- Each year in the past 5 years PSN had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 6.74%, PSN is doing good in the industry, outperforming 65.91% of the companies in the same industry.
- The Return On Equity of PSN (15.12%) is better than 68.18% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.82%, PSN is in line with its industry, outperforming 57.95% of the companies in the same industry.
- 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
- PSN's Profit Margin of 5.96% is fine compared to the rest of the industry. PSN outperforms 67.05% 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 55.68% of its industry peers.
- PSN's Operating Margin has improved in the last couple of years.
- PSN has a worse Gross Margin (22.05%) than 67.05% 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
- PSN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 3.17 indicates that PSN is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.17, PSN is in the better half of the industry, outperforming 61.36% of the companies in the same industry.
- PSN has a debt to FCF ratio of 3.26. This is a good value and a sign of high solvency as PSN would need 3.26 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.26, PSN is in the better half of the industry, outperforming 69.32% of the companies in the same industry.
- A Debt/Equity ratio of 0.49 indicates that PSN is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.49, PSN is in line with its industry, outperforming 46.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 3.17 |
ROIC/WACC0.96
WACC8.16%
2.3 Liquidity
- A Current Ratio of 1.67 indicates that PSN should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.67, PSN is in the better half of the industry, outperforming 60.23% of the companies in the same 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.
- Looking at the Quick ratio, with a value of 1.67, PSN is in the better half of the industry, outperforming 60.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
- PSN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.63%.
- 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.
- 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)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.
- The Revenue is expected to grow by 2.05% on average over the next years.
EPS Next Y-0.34%
EPS Next 2Y2.8%
EPS Next 3Y6.54%
EPS Next 5YN/A
Revenue Next Year-4.9%
Revenue Next 2Y-0.76%
Revenue Next 3Y2.05%
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 22.26.
- PSN's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 26.94. PSN is around the same levels.
- With a Price/Forward Earnings ratio of 20.62, PSN is valued on the expensive side.
- PSN's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.94, PSN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.26 | ||
| Fwd PE | 20.62 |
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 70.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.82 | ||
| EV/EBITDA | 16.09 |
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 2Y2.8%
EPS Next 3Y6.54%
5. Dividend
5.1 Amount
- No dividends for PSN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
71.24
-1.23 (-1.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)11-05 2025-11-05/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners107.32%
Inst Owner Change-0.31%
Ins Owners1.09%
Ins Owner Change-1.53%
Market Cap7.59B
Revenue(TTM)6.49B
Net Income(TTM)386.84M
Analysts82.22
Price Target86.69 (21.69%)
Short Float %4.11%
Short Ratio2.78
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)-8.89%
PT rev (3m)-3.26%
EPS NQ rev (1m)-1.04%
EPS NQ rev (3m)-11.76%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-4.92%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-1.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.26 | ||
| Fwd PE | 20.62 | ||
| P/S | 1.17 | ||
| P/FCF | 19.82 | ||
| P/OCF | 17.34 | ||
| P/B | 2.97 | ||
| P/tB | 138.1 | ||
| EV/EBITDA | 16.09 |
EPS(TTM)3.2
EY4.49%
EPS(NY)3.46
Fwd EY4.85%
FCF(TTM)3.6
FCFY5.05%
OCF(TTM)4.11
OCFY5.77%
SpS60.99
BVpS24.02
TBVpS0.52
PEG (NY)N/A
PEG (5Y)1.61
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 | 3.17 |
F-Score7
WACC8.16%
ROIC/WACC0.96
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-4.9%
Revenue Next 2Y-0.76%
Revenue Next 3Y2.05%
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%.