PARSONS CORP (PSN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSN - US70202L1026 - Common Stock
69.93 USD
+1.76 (+2.58%)
69.51 USD
-0.42 (-0.6%)
Taking everything into account, PSN scores 4 out of 10 in our fundamental rating. PSN was compared to 87 industry peers in the Professional Services industry. PSN has an average financial health and profitability rating. PSN is quite expensive at the moment. It does show a decent growth rate.
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.
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
PSN has a Return On Assets of 6.74%. This is in the better half of the industry: PSN outperforms 65.12% of its industry peers.
PSN has a Return On Equity of 15.12%. This is in the better half of the industry: PSN outperforms 67.44% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.82%, PSN is in line with its industry, outperforming 56.98% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PSN is below the industry average of 11.80%.
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 Profit Margin of 5.96%. This is in the better half of the industry: PSN outperforms 66.28% of its industry peers.
PSN's Profit Margin has improved in the last couple of years.
PSN has a Operating Margin of 6.33%. This is comparable to the rest of the industry: PSN outperforms 54.65% 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 22.05%, PSN is doing worse than 68.60% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PSN is destroying value.
The number of shares outstanding for PSN has been increased compared to 1 year ago.
Compared to 5 years ago, PSN has more shares outstanding
The debt/assets ratio for PSN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.14 indicates that PSN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.14, PSN is in the better half of the industry, outperforming 60.47% 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.
With a decent Debt to FCF ratio value of 3.26, PSN is doing good in the industry, outperforming 67.44% 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 | 3.14 |
ROIC/WACC0.97
WACC8.09%
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 line with its industry, outperforming 59.30% 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.
PSN's Quick ratio of 1.67 is in line compared 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
PSN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.63%.
PSN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.84% yearly.
PSN shows a decrease in Revenue. In the last year, the revenue decreased by -0.24%.
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
PSN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.54% yearly.
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
The Price/Earnings ratio is 21.85, which indicates a rather expensive current valuation of PSN.
The rest of the industry has a similar Price/Earnings ratio as PSN.
PSN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.19.
The Price/Forward Earnings ratio is 20.24, which indicates a rather expensive current valuation of PSN.
PSN's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of PSN to the average of the S&P500 Index (23.92), we can say PSN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.85 | ||
| Fwd PE | 20.24 |
4.2 Price Multiples
PSN's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, PSN is valued a bit cheaper than the industry average as 70.93% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.45 | ||
| EV/EBITDA | 15.83 |
4.3 Compensation for Growth
The decent profitability rating of PSN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.58
EPS Next 2Y2.8%
EPS Next 3Y6.54%
5. Dividend
5.1 Amount
PSN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
69.93
+1.76 (+2.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners107.32%
Inst Owner Change0.03%
Ins Owners1.09%
Ins Owner Change-1.53%
Market Cap7.45B
Revenue(TTM)6.49B
Net Income(TTM)386.84M
Analysts82.22
Price Target87.78 (25.53%)
Short Float %4.83%
Short Ratio3.51
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)-7.74%
PT rev (3m)-2.04%
EPS NQ rev (1m)-1.76%
EPS NQ rev (3m)-12.05%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)0.24%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-4.92%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-1.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.85 | ||
| Fwd PE | 20.24 | ||
| P/S | 1.15 | ||
| P/FCF | 19.45 | ||
| P/OCF | 17.02 | ||
| P/B | 2.91 | ||
| P/tB | 135.56 | ||
| EV/EBITDA | 15.83 |
EPS(TTM)3.2
EY4.58%
EPS(NY)3.46
Fwd EY4.94%
FCF(TTM)3.6
FCFY5.14%
OCF(TTM)4.11
OCFY5.88%
SpS60.99
BVpS24.02
TBVpS0.52
PEG (NY)N/A
PEG (5Y)1.58
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 | 3.14 |
F-Score7
WACC8.09%
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-0.34%
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 4 / 10 to PSN.
What is the valuation status of PARSONS CORP (PSN) stock?
ChartMill assigns a valuation rating of 3 / 10 to PARSONS CORP (PSN). This can be considered as Overvalued.
Can you provide the profitability details for PARSONS CORP?
PARSONS CORP (PSN) has a profitability rating of 6 / 10.
What is the expected EPS growth for PARSONS CORP (PSN) stock?
The Earnings per Share (EPS) of PARSONS CORP (PSN) is expected to decline by -0.34% in the next year.
Is the dividend of PARSONS CORP sustainable?
The dividend rating of PARSONS CORP (PSN) is 0 / 10 and the dividend payout ratio is 0%.