ASGN INC (ASGN)
US00191U1025 - Common Stock
We assign a fundamental rating of 5 out of 10 to ASGN. ASGN was compared to 81 industry peers in the Professional Services industry. ASGN has an excellent financial health rating, but there are some minor concerns on its profitability. ASGN has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
ASGN had positive earnings in the past year.
ASGN had a positive operating cash flow in the past year.
ASGN had positive earnings in each of the past 5 years.
Each year in the past 5 years ASGN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ASGN (6.19%) is better than 71.25% of its industry peers.
ASGN's Return On Equity of 11.59% is fine compared to the rest of the industry. ASGN outperforms 62.50% of its industry peers.
ASGN has a better Return On Invested Capital (8.50%) than 62.50% of its industry peers.
ASGN had an Average Return On Invested Capital over the past 3 years of 8.84%. This is below the industry average of 12.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.19% | ||
| ROE | 11.59% | ||
| ROIC | 8.5% |
ROA(3y)8.46%
ROA(5y)7.48%
ROE(3y)15.89%
ROE(5y)14.6%
ROIC(3y)8.84%
ROIC(5y)8.31%
1.3 Margins
The Profit Margin of ASGN (4.93%) is better than 65.00% of its industry peers.
In the last couple of years the Profit Margin of ASGN has remained more or less at the same level.
ASGN's Operating Margin of 8.18% is fine compared to the rest of the industry. ASGN outperforms 63.75% of its industry peers.
In the last couple of years the Operating Margin of ASGN has remained more or less at the same level.
Looking at the Gross Margin, with a value of 28.76%, ASGN is doing worse than 67.50% of the companies in the same industry.
In the last couple of years the Gross Margin of ASGN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.18% | ||
| PM (TTM) | 4.93% | ||
| GM | 28.76% |
OM growth 3Y0.62%
OM growth 5Y0.1%
PM growth 3Y-4.85%
PM growth 5Y1.22%
GM growth 3Y2.07%
GM growth 5Y-0.91%
2. Health
2.1 Basic Checks
ASGN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ASGN has less shares outstanding than it did 1 year ago.
ASGN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ASGN has an improved debt to assets ratio.
2.2 Solvency
ASGN has an Altman-Z score of 3.93. This indicates that ASGN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.93, ASGN is in the better half of the industry, outperforming 76.25% of the companies in the same industry.
The Debt to FCF ratio of ASGN is 2.49, which is a good value as it means it would take ASGN, 2.49 years of fcf income to pay off all of its debts.
ASGN has a better Debt to FCF ratio (2.49) than 63.75% of its industry peers.
ASGN has a Debt/Equity ratio of 0.55. This is a neutral value indicating ASGN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.55, ASGN is doing worse than 60.00% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for ASGN, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.49 | ||
| Altman-Z | 3.93 |
ROIC/WACC1.02
WACC8.33%
2.3 Liquidity
ASGN has a Current Ratio of 2.47. This indicates that ASGN is financially healthy and has no problem in meeting its short term obligations.
ASGN has a better Current ratio (2.47) than 85.00% of its industry peers.
A Quick Ratio of 2.47 indicates that ASGN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.47, ASGN belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.47 |
3. Growth
3.1 Past
The earnings per share for ASGN have decreased by -7.29% in the last year.
Measured over the past 5 years, ASGN shows a small growth in Earnings Per Share. The EPS has been growing by 6.85% on average per year.
Looking at the last year, ASGN shows a decrease in Revenue. The Revenue has decreased by -2.85% in the last year.
ASGN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.53% yearly.
EPS 1Y (TTM)-7.29%
EPS 3Y8.09%
EPS 5Y6.85%
EPS growth Q2Q-3.97%
Revenue 1Y (TTM)-2.85%
Revenue growth 3Y8.32%
Revenue growth 5Y5.53%
Revenue growth Q2Q-6.63%
3.2 Future
ASGN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.25% yearly.
The Revenue is expected to grow by 3.53% on average over the next years.
EPS Next Y-6.32%
EPS Next 2Y3.29%
EPS Next 3Y8.25%
EPS Next 5YN/A
Revenue Next Year-2.41%
Revenue Next 2Y2%
Revenue Next 3Y3.53%
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 accelerating.
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
Based on the Price/Earnings ratio of 15.81, the valuation of ASGN can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of ASGN indicates a somewhat cheap valuation: ASGN is cheaper than 76.25% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ASGN to the average of the S&P500 Index (24.67), we can say ASGN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 16.88, ASGN is valued correctly.
65.00% of the companies in the same industry are more expensive than ASGN, based on the Price/Forward Earnings ratio.
ASGN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.02, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.81 | ||
| Fwd PE | 16.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ASGN is valued a bit cheaper than the industry average as 72.50% of the companies are valued more expensively.
88.75% of the companies in the same industry are more expensive than ASGN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.76 | ||
| EV/EBITDA | 11.73 |
4.3 Compensation for Growth
The decent profitability rating of ASGN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.31
EPS Next 2Y3.29%
EPS Next 3Y8.25%
5. Dividend
5.1 Amount
ASGN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ASGN INC
NYSE:ASGN (4/30/2024, 6:00:00 PM)
After market: 96.45 0 (0%)96.45
-2.23 (-2.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.81 | ||
| Fwd PE | 16.88 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.19% | ||
| ROE | 11.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.18% | ||
| PM (TTM) | 4.93% | ||
| GM | 28.76% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.47 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-7.29%
EPS 3Y8.09%
EPS 5Y
EPS growth Q2Q
EPS Next Y-6.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.85%
Revenue growth 3Y8.32%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y