Reasonable Growth, Debt Levels, and a High ROIC Make PARSONS CORP (NYSE:PSN) Appealing to Quality Investors.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if PARSONS CORP (NYSE:PSN) is suited for quality investing. Investors should of course do their own research, but we spotted PARSONS CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Exploring Why PSN Holds Appeal for Quality Investors.

• PSN has shown strong performance in revenue growth over the past 5 years, with a 11.29% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a notable ROIC excluding cash and goodwill at 30.98%, PSN demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• PSN maintains a healthy Debt/Free Cash Flow Ratio of 2.65, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• PSN demonstrates consistent Profit Quality over the past 5 years, with a strong 238.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• With a robust 5-year EBIT growth of 49.38%, PSN showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• PSN has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

What else is there to say on the fundamentals of PSN?

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

PSN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. PSN has only an average score on both its financial health and profitability. PSN has a correct valuation and a medium growth rate.

For an up to date full fundamental analysis you can check the fundamental report of PSN

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.