PARSONS CORP (PSN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSN - US70202L1026 - Common Stock
84.68 USD
+0.55 (+0.65%)
84.88 USD
+0.2 (+0.24%)
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 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.
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 Return On Assets of 6.74%. This is in the better half of the industry: PSN outperforms 65.52% of its industry peers.
With a decent Return On Equity value of 15.12%, PSN is doing good in the industry, outperforming 67.82% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.82%, PSN is in line with its industry, outperforming 56.32% of the companies in the same industry.
PSN had an Average Return On Invested Capital over the past 3 years of 6.99%. This is significantly below the industry average of 12.15%.
The 3 year average ROIC (6.99%) for PSN is below the current ROIC(7.82%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 5.96%, PSN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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 70.11% 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
PSN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PSN has more shares outstanding than it did 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
PSN has an Altman-Z score of 3.43. This indicates that PSN is financially healthy and has little risk of bankruptcy at the moment.
PSN has a Altman-Z score of 3.43. This is in the better half of the industry: PSN outperforms 64.37% 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.
Looking at the Debt to FCF ratio, with a value of 3.26, PSN is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
PSN has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of PSN (0.49) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 3.43 |
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.
Looking at the Current ratio, with a value of 1.67, PSN is in the better half of the industry, outperforming 62.07% 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.
With a decent Quick ratio value of 1.67, PSN is doing good in the industry, outperforming 62.07% of the companies in the same industry.
| 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.
PSN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.84% yearly.
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
The Earnings Per Share is expected to grow by 7.15% on average over the next years.
The Revenue is expected to grow by 2.87% on average over the next years.
EPS Next Y-0.76%
EPS Next 2Y4.67%
EPS Next 3Y7.15%
EPS Next 5YN/A
Revenue Next Year-2.97%
Revenue Next 2Y1.41%
Revenue Next 3Y2.87%
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
A Price/Earnings ratio of 26.46 indicates a quite expensive valuation of PSN.
PSN's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.15. PSN is around the same levels.
The Price/Forward Earnings ratio is 23.64, which indicates a rather expensive current valuation of PSN.
PSN's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.12, PSN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.46 | ||
| Fwd PE | 23.64 |
4.2 Price Multiples
PSN's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, PSN is valued a bit cheaper than 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.62 | ||
| EV/EBITDA | 18.77 |
4.3 Compensation for Growth
The decent profitability rating of PSN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.91
EPS Next 2Y4.67%
EPS Next 3Y7.15%
5. Dividend
5.1 Amount
No dividends for PSN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
84.68
+0.55 (+0.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners106.12%
Inst Owner Change13.47%
Ins Owners1.09%
Ins Owner Change-0.43%
Market Cap9.04B
Revenue(TTM)6.49B
Net Income(TTM)386.84M
Analysts80
Price Target95.12 (12.33%)
Short Float %5.6%
Short Ratio5.85
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)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)6.15%
PT rev (3m)6.79%
EPS NQ rev (1m)-10.66%
EPS NQ rev (3m)-10.17%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)-4.09%
Revenue NQ rev (3m)-4.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.46 | ||
| Fwd PE | 23.64 | ||
| P/S | 1.39 | ||
| P/FCF | 23.62 | ||
| P/OCF | 20.66 | ||
| P/B | 3.54 | ||
| P/tB | 164.61 | ||
| EV/EBITDA | 18.77 |
EPS(TTM)3.2
EY3.78%
EPS(NY)3.58
Fwd EY4.23%
FCF(TTM)3.58
FCFY4.23%
OCF(TTM)4.1
OCFY4.84%
SpS60.82
BVpS23.95
TBVpS0.51
PEG (NY)N/A
PEG (5Y)1.91
Graham Number41.53
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 | 3.43 |
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-0.76%
EPS Next 2Y4.67%
EPS Next 3Y7.15%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y22.63%
Revenue growth 5Y11.29%
Sales Q2Q%-10.41%
Revenue Next Year-2.97%
Revenue Next 2Y1.41%
Revenue Next 3Y2.87%
Revenue Next 5YN/A
EBIT growth 1Y-13.59%
EBIT growth 3Y67.83%
EBIT growth 5Y49.38%
EBIT Next Year39.88%
EBIT Next 3Y17.88%
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.
Can you provide the valuation status for PARSONS CORP?
ChartMill assigns a valuation rating of 3 / 10 to PARSONS CORP (PSN). This can be considered as Overvalued.
What is the profitability of PSN stock?
PARSONS CORP (PSN) has a profitability rating of 6 / 10.
What is the financial health of PARSONS CORP (PSN) stock?
The financial health rating of PARSONS CORP (PSN) is 5 / 10.
Is the dividend of PARSONS CORP sustainable?
The dividend rating of PARSONS CORP (PSN) is 0 / 10 and the dividend payout ratio is 0%.