ASGN INC (ASGN) Stock Fundamental Analysis
NYSE:ASGN - New York Stock Exchange, Inc. - US00191U1025 - Common Stock - Currency: USD
Overall ASGN gets a fundamental rating of 5 out of 10. We evaluated ASGN against 82 industry peers in the IT Services industry. ASGN has an average financial health and profitability rating. 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
ASGN has a better Return On Assets (3.77%) than 61.45% of its industry peers.
The Return On Equity of ASGN (7.67%) is better than 61.45% of its industry peers.
ASGN has a Return On Invested Capital of 5.97%. This is in the better half of the industry: ASGN outperforms 61.45% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ASGN is significantly below the industry average of 22.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 7.67% | ||
| ROIC | 5.97% |
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
ASGN has a Profit Margin (3.50%) which is in line with its industry peers.
ASGN's Profit Margin has declined in the last couple of years.
ASGN has a Operating Margin of 6.67%. This is comparable to the rest of the industry: ASGN outperforms 57.83% of its industry peers.
In the last couple of years the Operating Margin of ASGN has declined.
ASGN has a worse Gross Margin (28.84%) than 63.86% 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 | 6.67% | ||
| PM (TTM) | 3.5% | ||
| GM | 28.84% |
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
ASGN 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, ASGN has less shares outstanding
The number of shares outstanding for ASGN has been reduced compared to 5 years ago.
Compared to 1 year ago, ASGN has a worse debt to assets ratio.
2.2 Solvency
ASGN has an Altman-Z score of 2.61. This is not the best score and indicates that ASGN is in the grey zone with still only limited risk for bankruptcy at the moment.
ASGN's Altman-Z score of 2.61 is in line compared to the rest of the industry. ASGN outperforms 46.99% of its industry peers.
ASGN has a debt to FCF ratio of 3.57. This is a good value and a sign of high solvency as ASGN would need 3.57 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.57, ASGN is doing good in the industry, outperforming 62.65% of the companies in the same industry.
ASGN has a Debt/Equity ratio of 0.66. This is a neutral value indicating ASGN is somewhat dependend on debt financing.
ASGN has a Debt to Equity ratio (0.66) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 3.57 | ||
| Altman-Z | 2.61 |
ROIC/WACC0.66
WACC9.03%
2.3 Liquidity
A Current Ratio of 2.11 indicates that ASGN has no problem at all paying its short term obligations.
ASGN has a better Current ratio (2.11) than 61.45% of its industry peers.
A Quick Ratio of 2.11 indicates that ASGN has no problem at all paying its short term obligations.
The Quick ratio of ASGN (2.11) is better than 63.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 2.11 |
3. Growth
3.1 Past
The earnings per share for ASGN have decreased strongly by -15.04% 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.
The Revenue has decreased by -6.31% in the past year.
ASGN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.72% yearly.
EPS 1Y (TTM)-15.04%
EPS 3Y-2.25%
EPS 5Y2.16%
EPS Q2Q%-13.97%
Revenue 1Y (TTM)-6.31%
Revenue growth 3Y0.74%
Revenue growth 5Y3.72%
Sales Q2Q%-1.36%
3.2 Future
The Earnings Per Share is expected to grow by 6.02% on average over the next years.
Based on estimates for the next years, ASGN will show a small growth in Revenue. The Revenue will grow by 1.63% on average per year.
EPS Next Y-13.85%
EPS Next 2Y-0.3%
EPS Next 3Y6.02%
EPS Next 5YN/A
Revenue Next Year-3.48%
Revenue Next 2Y-0.5%
Revenue Next 3Y1.63%
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
The Price/Earnings ratio is 10.79, which indicates a very decent valuation of ASGN.
Based on the Price/Earnings ratio, ASGN is valued cheaply inside the industry as 89.16% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.87. ASGN is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.96, the valuation of ASGN can be described as reasonable.
Based on the Price/Forward Earnings ratio, ASGN is valued cheaper than 89.16% of the companies in the same industry.
ASGN is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 9.96 |
4.2 Price Multiples
81.93% of the companies in the same industry are more expensive than ASGN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ASGN is valued cheaper than 93.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.68 | ||
| EV/EBITDA | 9.06 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.99
EPS Next 2Y-0.3%
EPS Next 3Y6.02%
5. Dividend
5.1 Amount
No dividends for ASGN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
51.77
+1.1 (+2.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners100.52%
Inst Owner Change-2.52%
Ins Owners3.59%
Ins Owner Change3.26%
Market Cap2.27B
Analysts72.31
Price Target58.65 (13.29%)
Short Float %4.61%
Short Ratio3.66
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)0.37%
Min EPS beat(2)-5.06%
Max EPS beat(2)5.79%
EPS beat(4)3
Avg EPS beat(4)1.87%
Min EPS beat(4)-5.06%
Max EPS beat(4)5.79%
EPS beat(8)7
Avg EPS beat(8)2.52%
EPS beat(12)8
Avg EPS beat(12)1.43%
EPS beat(16)12
Avg EPS beat(16)3.13%
Revenue beat(2)1
Avg Revenue beat(2)-0.38%
Min Revenue beat(2)-1.31%
Max Revenue beat(2)0.55%
Revenue beat(4)1
Avg Revenue beat(4)-1.62%
Min Revenue beat(4)-3.43%
Max Revenue beat(4)0.55%
Revenue beat(8)1
Avg Revenue beat(8)-1.6%
Revenue beat(12)1
Avg Revenue beat(12)-1.77%
Revenue beat(16)3
Avg Revenue beat(16)-1.28%
PT rev (1m)-5.07%
PT rev (3m)-6.25%
EPS NQ rev (1m)-0.35%
EPS NQ rev (3m)-13.94%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.55%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)-3.85%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.79 | ||
| Fwd PE | 9.96 | ||
| P/S | 0.57 | ||
| P/FCF | 6.68 | ||
| P/OCF | 6 | ||
| P/B | 1.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.06 |
EPS(TTM)4.8
EY9.27%
EPS(NY)5.2
Fwd EY10.04%
FCF(TTM)7.74
FCFY14.96%
OCF(TTM)8.62
OCFY16.66%
SpS91.44
BVpS41.71
TBVpS-18.3
PEG (NY)N/A
PEG (5Y)4.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 7.67% | ||
| ROCE | 8.14% | ||
| ROIC | 5.97% | ||
| ROICexc | 6.23% | ||
| ROICexgc | 38.16% | ||
| OM | 6.67% | ||
| PM (TTM) | 3.5% | ||
| GM | 28.84% | ||
| FCFM | 8.47% |
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 Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 3.57 | ||
| Debt/EBITDA | 3.29 | ||
| Cap/Depr | 37.89% | ||
| Cap/Sales | 0.96% | ||
| Interest Coverage | 4.15 | ||
| Cash Conversion | 102.47% | ||
| Profit Quality | 242.11% | ||
| Current Ratio | 2.11 | ||
| Quick Ratio | 2.11 | ||
| Altman-Z | 2.61 |
F-Score5
WACC9.03%
ROIC/WACC0.66
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)-15.04%
EPS 3Y-2.25%
EPS 5Y2.16%
EPS Q2Q%-13.97%
EPS Next Y-13.85%
EPS Next 2Y-0.3%
EPS Next 3Y6.02%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.31%
Revenue growth 3Y0.74%
Revenue growth 5Y3.72%
Sales Q2Q%-1.36%
Revenue Next Year-3.48%
Revenue Next 2Y-0.5%
Revenue Next 3Y1.63%
Revenue Next 5YN/A
EBIT growth 1Y-19.89%
EBIT growth 3Y-4.63%
EBIT growth 5Y1.96%
EBIT Next Year37.71%
EBIT Next 3Y16.33%
EBIT Next 5YN/A
FCF growth 1Y7.89%
FCF growth 3Y31.88%
FCF growth 5Y5.39%
OCF growth 1Y5.98%
OCF growth 3Y27.34%
OCF growth 5Y5.01%