PARSONS CORP (PSN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSN - US70202L1026 - Common Stock
61.38 USD
+0.83 (+1.37%)
61.38 USD
0 (0%)
PSN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 86 industry peers in the Professional Services industry. Both the profitability and the financial health of PSN get a neutral evaluation. Nothing too spectacular is happening here. PSN has a correct valuation and a medium 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.
PSN had positive earnings in each of the past 5 years.
PSN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PSN has a better Return On Assets (6.74%) than 65.52% of its industry peers.
PSN has a better Return On Equity (15.12%) than 67.82% of its industry peers.
PSN's Return On Invested Capital of 7.82% is in line compared to the rest of the industry. PSN outperforms 56.32% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PSN is significantly below the industry average of 12.03%.
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 66.67% of its industry peers.
PSN's Profit Margin has improved in the last couple of years.
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.
PSN has a Gross Margin of 22.05%. This is in the lower half of the industry: PSN underperforms 70.11% 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
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.
Compared to 1 year ago, PSN has a worse debt to assets ratio.
2.2 Solvency
PSN has an Altman-Z score of 2.97. This is not the best score and indicates that PSN is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of PSN (2.97) is comparable to the rest of the 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.
PSN has a Debt to FCF ratio of 3.26. This is in the better half of the industry: PSN outperforms 67.82% of its industry peers.
PSN has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.49, PSN perfoms like the industry average, outperforming 45.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 2.97 |
ROIC/WACC0.98
WACC7.99%
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.
The Current ratio of PSN (1.67) is comparable to the rest of the industry.
A Quick Ratio of 1.67 indicates that PSN should not have too much problems paying its short term obligations.
PSN has a Quick ratio (1.67) which is in line with 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.
The Revenue has decreased by -0.24% in the past 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
The Earnings Per Share is expected to grow by 8.10% on average over the next years. This is quite good.
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
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
PSN is valuated rather expensively with a Price/Earnings ratio of 19.18.
PSN's Price/Earnings ratio is a bit cheaper when compared to the industry. PSN is cheaper than 60.92% of the companies in the same industry.
PSN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.39.
Based on the Price/Forward Earnings ratio of 17.23, the valuation of PSN can be described as rather expensive.
60.92% of the companies in the same industry are more expensive than PSN, based on the Price/Forward Earnings ratio.
PSN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.18 | ||
| Fwd PE | 17.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PSN indicates a somewhat cheap valuation: PSN is cheaper than 60.92% of the companies listed in the same industry.
72.41% 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 | 17.07 | ||
| EV/EBITDA | 14.08 |
4.3 Compensation for Growth
The decent profitability rating of PSN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.39
EPS Next 2Y4.37%
EPS Next 3Y8.1%
5. Dividend
5.1 Amount
PSN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
61.38
+0.83 (+1.37%)
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-1.08%
Market Cap6.54B
Revenue(TTM)6.49B
Net Income(TTM)386.84M
Analysts82.67
Price Target95.15 (55.02%)
Short Float %4.84%
Short Ratio3.75
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)2.45%
PT rev (3m)7.16%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-11.13%
EPS NY rev (1m)0.72%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-4.76%
Revenue NY rev (1m)-1.79%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.18 | ||
| Fwd PE | 17.23 | ||
| P/S | 1.01 | ||
| P/FCF | 17.07 | ||
| P/OCF | 14.94 | ||
| P/B | 2.56 | ||
| P/tB | 118.98 | ||
| EV/EBITDA | 14.08 |
EPS(TTM)3.2
EY5.21%
EPS(NY)3.56
Fwd EY5.8%
FCF(TTM)3.6
FCFY5.86%
OCF(TTM)4.11
OCFY6.7%
SpS60.99
BVpS24.02
TBVpS0.52
PEG (NY)N/A
PEG (5Y)1.39
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 | 2.97 |
F-Score7
WACC7.99%
ROIC/WACC0.98
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 4 / 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 4 / 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%.