PARSONS CORP (PSN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSN - US70202L1026 - Common Stock
66.65 USD
-17.81 (-21.09%)
66.84 USD
+0.19 (+0.29%)
We assign a fundamental rating of 5 out of 10 to PSN. PSN was compared to 87 industry peers in the Professional Services industry. PSN has only an average score on both its financial health and profitability. PSN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
PSN had positive earnings in the past year.
In the past year PSN had a positive cash flow from operations.
In the past 5 years PSN has always been profitable.
PSN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 6.74%, PSN is doing good in the industry, outperforming 65.52% 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 67.82% of its industry peers.
The Return On Invested Capital of PSN (7.82%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for PSN is significantly below the industry average of 12.13%.
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
PSN's Profit Margin of 5.96% is fine compared to the rest of the industry. PSN outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of PSN has grown nicely.
PSN's Operating Margin of 6.33% is in line compared to the rest of the industry. PSN outperforms 54.02% of its industry peers.
PSN's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 22.05%, PSN is not doing good in the industry: 70.11% of the companies in the same industry are doing better.
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.
Compared to 1 year ago, PSN has more shares outstanding
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 3.08 indicates that PSN is not in any danger for bankruptcy at the moment.
PSN's Altman-Z score of 3.08 is fine compared to the rest of the industry. PSN outperforms 60.92% of its industry peers.
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.
With a decent Debt to FCF ratio value of 3.26, PSN is doing good in the industry, outperforming 66.67% 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.
PSN's Debt to Equity ratio of 0.49 is in line compared to the rest of the industry. PSN outperforms 44.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.97
WACC8.03%
2.3 Liquidity
PSN has a Current 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 Current ratio (1.67) which is in line with its industry peers.
A Quick Ratio of 1.67 indicates that PSN should not have too much problems paying its short term obligations.
The Quick ratio of PSN (1.67) is comparable to the rest of the 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.
The Earnings Per Share has been growing by 13.84% on average over the past years. This is quite good.
Looking at the last year, PSN shows a decrease in Revenue. The Revenue has decreased by -0.24% in the last year.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.10% yearly.
PSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.32% yearly.
EPS Next Y-0.05%
EPS Next 2Y4.37%
EPS Next 3Y8.1%
EPS Next 5YN/A
Revenue Next Year-4.71%
Revenue Next 2Y0.36%
Revenue Next 3Y3.32%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.83, PSN is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as PSN.
Compared to an average S&P500 Price/Earnings ratio of 26.49, PSN is valued a bit cheaper.
A Price/Forward Earnings ratio of 18.71 indicates a rather expensive valuation of PSN.
The rest of the industry has a similar Price/Forward Earnings ratio as PSN.
PSN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.83 | ||
| Fwd PE | 18.71 |
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 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.54 | ||
| EV/EBITDA | 15.16 |
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)1.5
EPS Next 2Y4.37%
EPS Next 3Y8.1%
5. Dividend
5.1 Amount
No dividends for PSN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
66.65
-17.81 (-21.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners107.41%
Inst Owner Change11.97%
Ins Owners1.1%
Ins Owner Change-0.43%
Market Cap7.10B
Revenue(TTM)6.49B
Net Income(TTM)386.84M
Analysts82.67
Price Target95.15 (42.76%)
Short Float %5.44%
Short Ratio6.27
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)2.45%
PT rev (3m)6.83%
EPS NQ rev (1m)-2.56%
EPS NQ rev (3m)-10.48%
EPS NY rev (1m)0.72%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)-1.04%
Revenue NQ rev (3m)-4.25%
Revenue NY rev (1m)-1.79%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.83 | ||
| Fwd PE | 18.71 | ||
| P/S | 1.09 | ||
| P/FCF | 18.54 | ||
| P/OCF | 16.22 | ||
| P/B | 2.77 | ||
| P/tB | 129.2 | ||
| EV/EBITDA | 15.16 |
EPS(TTM)3.2
EY4.8%
EPS(NY)3.56
Fwd EY5.34%
FCF(TTM)3.6
FCFY5.39%
OCF(TTM)4.11
OCFY6.17%
SpS60.99
BVpS24.02
TBVpS0.52
PEG (NY)N/A
PEG (5Y)1.5
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 | 3.08 |
F-Score7
WACC8.03%
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-0.05%
EPS Next 2Y4.37%
EPS Next 3Y8.1%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y22.63%
Revenue growth 5Y11.29%
Sales Q2Q%-10.41%
Revenue Next Year-4.71%
Revenue Next 2Y0.36%
Revenue Next 3Y3.32%
Revenue Next 5YN/A
EBIT growth 1Y-13.59%
EBIT growth 3Y67.83%
EBIT growth 5Y49.38%
EBIT Next Year39.54%
EBIT Next 3Y18.67%
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 5 / 10 to PSN.
Can you provide the valuation status for PARSONS CORP?
ChartMill assigns a valuation rating of 4 / 10 to PARSONS CORP (PSN). This can be considered as Fairly Valued.
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%.