PARSONS CORP (PSN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSN - US70202L1026 - Common Stock
62.71 USD
+0.15 (+0.24%)
62.45 USD
-0.26 (-0.41%)
Overall PSN gets a fundamental rating of 5 out of 10. We evaluated PSN against 86 industry peers in the Professional Services industry. PSN has only an average score on both its financial health and profitability. PSN is not valued too expensively and it also shows a decent 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.
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 65.12% of the companies in the same industry.
PSN's Return On Equity of 15.12% is fine compared to the rest of the industry. PSN outperforms 67.44% of its industry peers.
With a Return On Invested Capital value of 7.82%, PSN perfoms like the industry average, outperforming 56.98% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PSN is significantly below the industry average of 12.04%.
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 has a better Profit Margin (5.96%) than 66.28% of its industry peers.
PSN's Profit Margin has improved in the last couple of years.
The Operating Margin of PSN (6.33%) is comparable to the rest of the industry.
PSN's Operating Margin has improved in the last couple of years.
PSN has a worse Gross Margin (22.05%) than 69.77% 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.
Compared to 1 year ago, PSN has more shares outstanding
The number of shares outstanding for PSN has been increased compared to 5 years ago.
PSN has a worse debt/assets ratio than last year.
2.2 Solvency
PSN has an Altman-Z score of 3.00. This indicates that PSN is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.00, PSN perfoms like the industry average, outperforming 58.14% 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.
PSN's Debt to FCF ratio of 3.26 is fine compared to the rest of the industry. PSN outperforms 68.60% 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.
Looking at the Debt to Equity ratio, with a value of 0.49, PSN is in line with its industry, outperforming 46.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 3 |
ROIC/WACC0.98
WACC7.98%
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.
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.
PSN has a Quick ratio of 1.67. This is comparable to the rest of the industry: PSN outperforms 59.30% of 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.
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 6.54% on average over the next years.
Based on estimates for the next years, PSN will show a small growth in Revenue. The Revenue will grow by 2.65% on average per year.
EPS Next Y-0.34%
EPS Next 2Y2.8%
EPS Next 3Y6.54%
EPS Next 5YN/A
Revenue Next Year-4.84%
Revenue Next 2Y-0.38%
Revenue Next 3Y2.65%
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 19.60, PSN is valued on the expensive side.
Based on the Price/Earnings ratio, PSN is valued a bit cheaper than 61.63% 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 26.84.
Based on the Price/Forward Earnings ratio of 18.15, the valuation of PSN can be described as rather expensive.
PSN's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.40. PSN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.6 | ||
| Fwd PE | 18.15 |
4.2 Price Multiples
PSN's Enterprise Value to EBITDA ratio is in line with the industry average.
PSN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PSN is cheaper than 73.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.44 | ||
| EV/EBITDA | 14.35 |
4.3 Compensation for Growth
The decent profitability rating of PSN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.42
EPS Next 2Y2.8%
EPS Next 3Y6.54%
5. Dividend
5.1 Amount
No dividends for PSN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
62.71
+0.15 (+0.24%)
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-1.51%
Market Cap6.68B
Revenue(TTM)6.49B
Net Income(TTM)386.84M
Analysts82.67
Price Target87.78 (39.98%)
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)-7.71%
PT rev (3m)-1.14%
EPS NQ rev (1m)-1.76%
EPS NQ rev (3m)-12.05%
EPS NY rev (1m)0.43%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-4.92%
Revenue NY rev (1m)-1.93%
Revenue NY rev (3m)-1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.6 | ||
| Fwd PE | 18.15 | ||
| P/S | 1.03 | ||
| P/FCF | 17.44 | ||
| P/OCF | 15.26 | ||
| P/B | 2.61 | ||
| P/tB | 121.56 | ||
| EV/EBITDA | 14.35 |
EPS(TTM)3.2
EY5.1%
EPS(NY)3.46
Fwd EY5.51%
FCF(TTM)3.6
FCFY5.73%
OCF(TTM)4.11
OCFY6.55%
SpS60.99
BVpS24.02
TBVpS0.52
PEG (NY)N/A
PEG (5Y)1.42
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 |
F-Score7
WACC7.98%
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-0.34%
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-4.84%
Revenue Next 2Y-0.38%
Revenue Next 3Y2.65%
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 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%.