PARSONS CORP (PSN)
US70202L1026 - Common Stock
Overall PSN gets a fundamental rating of 5 out of 10. We evaluated PSN against 80 industry peers in the Professional Services industry. PSN has only an average score on both its financial health and profitability. PSN is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, PSN could be worth investigating further for growth investing!.
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.
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
With a Return On Assets value of 1.45%, PSN perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
PSN has a Return On Equity (3.40%) which is in line with its industry peers.
PSN has a Return On Invested Capital of 9.43%. This is in the better half of the industry: PSN outperforms 61.04% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PSN is significantly below the industry average of 18.16%.
The 3 year average ROIC (4.85%) for PSN is below the current ROIC(9.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.45% | ||
| ROE | 3.4% | ||
| ROIC | 9.43% |
ROA(3y)2.44%
ROA(5y)2.66%
ROE(3y)5.05%
ROE(5y)5.59%
ROIC(3y)4.85%
ROIC(5y)4.17%
1.3 Margins
The Profit Margin of PSN (1.21%) is worse than 61.04% of its industry peers.
PSN's Profit Margin has declined in the last couple of years.
PSN's Operating Margin of 7.31% is in line compared to the rest of the industry. PSN outperforms 59.74% of its industry peers.
PSN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 21.56%, PSN is doing worse than 75.32% of the companies in the same industry.
PSN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.31% | ||
| PM (TTM) | 1.21% | ||
| GM | 21.56% |
OM growth 3Y16.46%
OM growth 5Y12.67%
PM growth 3Y5.61%
PM growth 5Y-14.13%
GM growth 3Y-0.33%
GM growth 5Y1.8%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), PSN is creating some 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.
Compared to 1 year ago, PSN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.69 indicates that PSN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.69, PSN is in the better half of the industry, outperforming 64.94% of the companies in the same industry.
PSN has a debt to FCF ratio of 2.30. This is a good value and a sign of high solvency as PSN would need 2.30 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.30, PSN is in the better half of the industry, outperforming 68.83% of the companies in the same industry.
PSN has a Debt/Equity ratio of 0.54. This is a neutral value indicating PSN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.54, PSN perfoms like the industry average, outperforming 41.56% of the companies in the same industry.
Although PSN does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.3 | ||
| Altman-Z | 3.69 |
ROIC/WACC1.03
WACC9.17%
2.3 Liquidity
A Current Ratio of 1.55 indicates that PSN should not have too much problems paying its short term obligations.
The Current ratio of PSN (1.55) is comparable to the rest of the industry.
PSN has a Quick Ratio of 1.55. 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 1.55, PSN is in line with its industry, outperforming 53.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.71% over the past year.
The Earnings Per Share has been decreasing by -9.19% on average over the past years.
PSN shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.88%.
Measured over the past years, PSN shows a quite strong growth in Revenue. The Revenue has been growing by 9.20% on average per year.
EPS 1Y (TTM)40.71%
EPS 3Y36%
EPS 5Y-9.19%
EPS Q2Q%37.68%
Revenue 1Y (TTM)28.88%
Revenue growth 3Y11.57%
Revenue growth 5Y9.2%
Sales Q2Q%27.6%
3.2 Future
PSN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.06% yearly.
The Revenue is expected to grow by 14.79% on average over the next years. This is quite good.
EPS Next Y40.57%
EPS Next 2Y27.07%
EPS Next 3Y23.06%
EPS Next 5YN/A
Revenue Next Year28.49%
Revenue Next 2Y18.41%
Revenue Next 3Y14.79%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 30.09, the valuation of PSN can be described as expensive.
Based on the Price/Earnings ratio, PSN is valued a bit more expensive than 61.04% of the companies in the same industry.
PSN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 24.28 indicates a rather expensive valuation of PSN.
PSN's Price/Forward Earnings ratio is in line with the industry average.
PSN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.09 | ||
| Fwd PE | 24.28 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PSN.
68.83% 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 | 18.57 | ||
| EV/EBITDA | 18.45 |
4.3 Compensation for Growth
PSN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PSN's earnings are expected to grow with 23.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y27.07%
EPS Next 3Y23.06%
5. Dividend
5.1 Amount
PSN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PARSONS CORP
NYSE:PSN (12/20/2024, 8:04:00 PM)
After market: 95.68 0 (0%)95.68
+0.58 (+0.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners100.28%
Inst Owner Change2.14%
Ins Owners0.88%
Ins Owner Change-0.48%
Market Cap10.16B
Analysts84
Price Target123.33 (28.9%)
Short Float %2.9%
Short Ratio3.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)18.63%
Min EPS beat(2)17.43%
Max EPS beat(2)19.84%
EPS beat(4)4
Avg EPS beat(4)14.38%
Min EPS beat(4)8.82%
Max EPS beat(4)19.84%
EPS beat(8)6
Avg EPS beat(8)10.57%
EPS beat(12)8
Avg EPS beat(12)7.01%
EPS beat(16)8
Avg EPS beat(16)-2.59%
Revenue beat(2)2
Avg Revenue beat(2)8.33%
Min Revenue beat(2)7.15%
Max Revenue beat(2)9.5%
Revenue beat(4)4
Avg Revenue beat(4)9.74%
Min Revenue beat(4)7.15%
Max Revenue beat(4)11.84%
Revenue beat(8)8
Avg Revenue beat(8)10.1%
Revenue beat(12)11
Avg Revenue beat(12)8.48%
Revenue beat(16)11
Avg Revenue beat(16)4.81%
PT rev (1m)10.93%
PT rev (3m)16.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.08%
EPS NY rev (1m)0.62%
EPS NY rev (3m)6.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.98%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)3.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.09 | ||
| Fwd PE | 24.28 | ||
| P/S | 1.56 | ||
| P/FCF | 18.57 | ||
| P/OCF | 17.31 | ||
| P/B | 4.39 | ||
| P/tB | 138.53 | ||
| EV/EBITDA | 18.45 |
EPS(TTM)3.18
EY3.32%
EPS(NY)3.94
Fwd EY4.12%
FCF(TTM)5.15
FCFY5.38%
OCF(TTM)5.53
OCFY5.78%
SpS61.31
BVpS21.78
TBVpS0.69
PEG (NY)0.74
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.45% | ||
| ROE | 3.4% | ||
| ROCE | 12.55% | ||
| ROIC | 9.43% | ||
| ROICexc | 11% | ||
| ROICexgc | 33.16% | ||
| OM | 7.31% | ||
| PM (TTM) | 1.21% | ||
| GM | 21.56% | ||
| FCFM | 8.4% |
ROA(3y)2.44%
ROA(5y)2.66%
ROE(3y)5.05%
ROE(5y)5.59%
ROIC(3y)4.85%
ROIC(5y)4.17%
ROICexc(3y)5.33%
ROICexc(5y)4.66%
ROICexgc(3y)15.99%
ROICexgc(5y)13.68%
ROCE(3y)6.27%
ROCE(5y)5.4%
ROICexcg growth 3Y19.03%
ROICexcg growth 5Y1.89%
ROICexc growth 3Y17.66%
ROICexc growth 5Y3.69%
OM growth 3Y16.46%
OM growth 5Y12.67%
PM growth 3Y5.61%
PM growth 5Y-14.13%
GM growth 3Y-0.33%
GM growth 5Y1.8%
F-Score7
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 2.3 | ||
| Debt/EBITDA | 2.15 | ||
| Cap/Depr | 37.58% | ||
| Cap/Sales | 0.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 100.8% | ||
| Profit Quality | 695.25% | ||
| Current Ratio | 1.55 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 3.69 |
F-Score7
WACC9.17%
ROIC/WACC1.03
Cap/Depr(3y)24.57%
Cap/Depr(5y)30.81%
Cap/Sales(3y)0.68%
Cap/Sales(5y)0.92%
Profit Quality(3y)243.24%
Profit Quality(5y)223.09%
High Growth Momentum
Growth
EPS 1Y (TTM)40.71%
EPS 3Y36%
EPS 5Y-9.19%
EPS Q2Q%37.68%
EPS Next Y40.57%
EPS Next 2Y27.07%
EPS Next 3Y23.06%
EPS Next 5YN/A
Revenue 1Y (TTM)28.88%
Revenue growth 3Y11.57%
Revenue growth 5Y9.2%
Sales Q2Q%27.6%
Revenue Next Year28.49%
Revenue Next 2Y18.41%
Revenue Next 3Y14.79%
Revenue Next 5YN/A
EBIT growth 1Y87.83%
EBIT growth 3Y29.94%
EBIT growth 5Y23.04%
EBIT Next Year103.95%
EBIT Next 3Y36.68%
EBIT Next 5YN/A
FCF growth 1Y160.23%
FCF growth 3Y12.91%
FCF growth 5Y7.55%
OCF growth 1Y146.3%
OCF growth 3Y12.13%
OCF growth 5Y7.45%