ASGN INC (ASGN) Stock Fundamental Analysis
NYSE:ASGN - New York Stock Exchange, Inc. - US00191U1025 - Common Stock - Currency: USD
ASGN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 81 industry peers in the IT Services industry. Both the profitability and the financial health of ASGN get a neutral evaluation. Nothing too spectacular is happening here. ASGN has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year ASGN was profitable.
ASGN had a positive operating cash flow in the past year.
In the past 5 years ASGN has always been profitable.
Each year in the past 5 years ASGN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ASGN (4.27%) is better than 62.96% of its industry peers.
ASGN has a Return On Equity of 8.81%. This is in the better half of the industry: ASGN outperforms 61.73% of its industry peers.
ASGN's Return On Invested Capital of 6.34% is in line compared to the rest of the industry. ASGN outperforms 58.02% of its industry peers.
ASGN had an Average Return On Invested Capital over the past 3 years of 8.44%. This is significantly below the industry average of 21.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 8.81% | ||
| ROIC | 6.34% |
ROA(3y)6.26%
ROA(5y)7.32%
ROE(3y)11.85%
ROE(5y)14.03%
ROIC(3y)8.44%
ROIC(5y)8.19%
1.3 Margins
The Profit Margin of ASGN (3.93%) is comparable to the rest of the industry.
ASGN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.16%, ASGN is in the better half of the industry, outperforming 60.49% of the companies in the same industry.
ASGN's Operating Margin has declined in the last couple of years.
ASGN has a worse Gross Margin (28.94%) than 64.20% of its industry peers.
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 | 7.16% | ||
| PM (TTM) | 3.93% | ||
| GM | 28.94% |
OM growth 3Y-5.33%
OM growth 5Y-1.69%
PM growth 3Y-25.23%
PM growth 5Y-3.53%
GM growth 3Y0.44%
GM growth 5Y0.3%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ASGN is destroying value.
Compared to 1 year ago, ASGN has less shares outstanding
The number of shares outstanding for ASGN has been reduced compared to 5 years ago.
The debt/assets ratio for ASGN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.63 indicates that ASGN is not a great score, but indicates only limited risk for bankruptcy at the moment.
ASGN has a Altman-Z score of 2.63. This is comparable to the rest of the industry: ASGN outperforms 45.68% of its industry peers.
ASGN has a debt to FCF ratio of 4.15. This is a neutral value as ASGN would need 4.15 years to pay back of all of its debts.
ASGN has a Debt to FCF ratio (4.15) which is in line with its industry peers.
ASGN has a Debt/Equity ratio of 0.72. This is a neutral value indicating ASGN is somewhat dependend on debt financing.
ASGN's Debt to Equity ratio of 0.72 is on the low side compared to the rest of the industry. ASGN is outperformed by 61.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.15 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.72
WACC8.86%
2.3 Liquidity
A Current Ratio of 2.37 indicates that ASGN has no problem at all paying its short term obligations.
The Current ratio of ASGN (2.37) is better than 71.60% of its industry peers.
ASGN has a Quick Ratio of 2.37. This indicates that ASGN is financially healthy and has no problem in meeting its short term obligations.
ASGN has a Quick ratio of 2.37. This is in the better half of the industry: ASGN outperforms 71.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 2.37 |
3. Growth
3.1 Past
The earnings per share for ASGN have decreased strongly by -15.14% 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 2.16% on average per year.
Looking at the last year, ASGN shows a decrease in Revenue. The Revenue has decreased by -8.05% in the last year.
The Revenue has been growing slightly by 3.72% on average over the past years.
EPS 1Y (TTM)-15.14%
EPS 3Y-2.25%
EPS 5Y2.16%
EPS Q2Q%-20.69%
Revenue 1Y (TTM)-8.05%
Revenue growth 3Y0.74%
Revenue growth 5Y3.72%
Sales Q2Q%-7.69%
3.2 Future
ASGN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.02% yearly.
Based on estimates for the next years, ASGN will show a small growth in Revenue. The Revenue will grow by 2.19% on average per year.
EPS Next Y-13.63%
EPS Next 2Y-0.44%
EPS Next 3Y6.02%
EPS Next 5YN/A
Revenue Next Year-4%
Revenue Next 2Y-0.47%
Revenue Next 3Y2.19%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 10.46, the valuation of ASGN can be described as reasonable.
Based on the Price/Earnings ratio, ASGN is valued cheaply inside the industry as 91.36% of the companies are valued more expensively.
ASGN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.28.
Based on the Price/Forward Earnings ratio of 10.07, the valuation of ASGN can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ASGN indicates a rather cheap valuation: ASGN is cheaper than 90.12% of the companies listed in the same industry.
ASGN is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 10.07 |
4.2 Price Multiples
ASGN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ASGN is cheaper than 86.42% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ASGN is valued cheaper than 95.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.4 | ||
| EV/EBITDA | 8.97 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.84
EPS Next 2Y-0.44%
EPS Next 3Y6.02%
5. Dividend
5.1 Amount
No dividends for ASGN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
52.2
+0.17 (+0.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners100.9%
Inst Owner Change2.76%
Ins Owners3.59%
Ins Owner Change4.26%
Market Cap2.29B
Analysts75.38
Price Target61.78 (18.35%)
Short Float %5.15%
Short Ratio4.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.86%
Min EPS beat(2)-5.06%
Max EPS beat(2)3.34%
EPS beat(4)3
Avg EPS beat(4)0.53%
Min EPS beat(4)-5.06%
Max EPS beat(4)3.41%
EPS beat(8)7
Avg EPS beat(8)2.34%
EPS beat(12)8
Avg EPS beat(12)1.1%
EPS beat(16)12
Avg EPS beat(16)2.88%
Revenue beat(2)0
Avg Revenue beat(2)-2.37%
Min Revenue beat(2)-3.43%
Max Revenue beat(2)-1.31%
Revenue beat(4)0
Avg Revenue beat(4)-2.53%
Min Revenue beat(4)-3.43%
Max Revenue beat(4)-1.31%
Revenue beat(8)0
Avg Revenue beat(8)-1.9%
Revenue beat(12)0
Avg Revenue beat(12)-1.86%
Revenue beat(16)2
Avg Revenue beat(16)-1.37%
PT rev (1m)-1.24%
PT rev (3m)-35.1%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-12.8%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-12.2%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)-1.93%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-2.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 10.07 | ||
| P/S | 0.57 | ||
| P/FCF | 7.4 | ||
| P/OCF | 6.66 | ||
| P/B | 1.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.97 |
EPS(TTM)4.99
EY9.56%
EPS(NY)5.18
Fwd EY9.93%
FCF(TTM)7.05
FCFY13.51%
OCF(TTM)7.84
OCFY15.02%
SpS91.76
BVpS40.94
TBVpS-19.42
PEG (NY)N/A
PEG (5Y)4.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 8.81% | ||
| ROCE | 8.65% | ||
| ROIC | 6.34% | ||
| ROICexc | 6.55% | ||
| ROICexgc | 36.63% | ||
| OM | 7.16% | ||
| PM (TTM) | 3.93% | ||
| GM | 28.94% | ||
| FCFM | 7.68% |
ROA(3y)6.26%
ROA(5y)7.32%
ROE(3y)11.85%
ROE(5y)14.03%
ROIC(3y)8.44%
ROIC(5y)8.19%
ROICexc(3y)8.85%
ROICexc(5y)8.94%
ROICexgc(3y)45.83%
ROICexgc(5y)47.14%
ROCE(3y)11.51%
ROCE(5y)11.17%
ROICexcg growth 3Y-8.35%
ROICexcg growth 5Y2.66%
ROICexc growth 3Y-8.5%
ROICexc growth 5Y-0.68%
OM growth 3Y-5.33%
OM growth 5Y-1.69%
PM growth 3Y-25.23%
PM growth 5Y-3.53%
GM growth 3Y0.44%
GM growth 5Y0.3%
F-Score5
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 4.15 | ||
| Debt/EBITDA | 3.33 | ||
| Cap/Depr | 35.63% | ||
| Cap/Sales | 0.86% | ||
| Interest Coverage | 4.65 | ||
| Cash Conversion | 89.17% | ||
| Profit Quality | 195.44% | ||
| Current Ratio | 2.37 | ||
| Quick Ratio | 2.37 | ||
| Altman-Z | 2.63 |
F-Score5
WACC8.86%
ROIC/WACC0.72
Cap/Depr(3y)39.16%
Cap/Depr(5y)38.51%
Cap/Sales(3y)0.86%
Cap/Sales(5y)0.87%
Profit Quality(3y)166.38%
Profit Quality(5y)146.75%
High Growth Momentum
Growth
EPS 1Y (TTM)-15.14%
EPS 3Y-2.25%
EPS 5Y2.16%
EPS Q2Q%-20.69%
EPS Next Y-13.63%
EPS Next 2Y-0.44%
EPS Next 3Y6.02%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.05%
Revenue growth 3Y0.74%
Revenue growth 5Y3.72%
Sales Q2Q%-7.69%
Revenue Next Year-4%
Revenue Next 2Y-0.47%
Revenue Next 3Y2.19%
Revenue Next 5YN/A
EBIT growth 1Y-17.96%
EBIT growth 3Y-4.63%
EBIT growth 5Y1.96%
EBIT Next Year35.2%
EBIT Next 3Y18.72%
EBIT Next 5YN/A
FCF growth 1Y5.5%
FCF growth 3Y31.88%
FCF growth 5Y5.39%
OCF growth 1Y3.37%
OCF growth 3Y27.34%
OCF growth 5Y5.01%