PARSONS CORP (PSN) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:PSN • US70202L1026
68.34 USD
0 (0%)
At close: Feb 3, 2026
68.8 USD
+0.46 (+0.67%)
After Hours: 2/3/2026, 8:04:00 PM
PSN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 89 industry peers in the Professional Services industry. Both the profitability and the financial health of PSN get a neutral evaluation. Nothing too spectacular is happening here. PSN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- PSN had positive earnings in the past year.
- PSN had a positive operating cash flow in the past year.
- 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
- Looking at the Return On Assets, with a value of 6.74%, PSN is in the better half of the industry, outperforming 67.42% of the companies in the same industry.
- PSN has a better Return On Equity (15.12%) than 68.54% of its industry peers.
- PSN has a Return On Invested Capital (7.82%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for PSN is significantly below the industry average of 12.00%.
- 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's Profit Margin of 5.96% is fine compared to the rest of the industry. PSN outperforms 67.42% of its industry peers.
- In the last couple of years the Profit Margin of PSN has grown nicely.
- The Operating Margin of PSN (6.33%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of PSN has grown nicely.
- Looking at the Gross Margin, with a value of 22.05%, PSN is doing worse than 67.42% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PSN is destroying value.
- PSN has more shares outstanding than it did 1 year ago.
- PSN has more shares outstanding than it did 5 years ago.
- PSN has a worse debt/assets ratio than last year.
2.2 Solvency
- PSN has an Altman-Z score of 3.11. This indicates that PSN is financially healthy and has little risk of bankruptcy at the moment.
- PSN has a Altman-Z score of 3.11. This is in the better half of the industry: PSN outperforms 61.80% of its industry peers.
- 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.
- PSN has a better Debt to FCF ratio (3.26) than 69.66% of its industry peers.
- PSN has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
- PSN has a Debt to Equity ratio of 0.49. This is comparable to the rest of the industry: PSN outperforms 48.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.96
WACC8.17%
2.3 Liquidity
- PSN has a Current 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.
- The Current ratio of PSN (1.67) is comparable to the rest of the 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 has a Quick ratio (1.67) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 0.63% over the past year.
- 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 5.75% yearly.
- Based on estimates for the next years, PSN will show a small growth in Revenue. The Revenue will grow by 2.10% on average per year.
EPS Next Y-0.71%
EPS Next 2Y2.21%
EPS Next 3Y5.75%
EPS Next 5YN/A
Revenue Next Year-5.07%
Revenue Next 2Y-0.82%
Revenue Next 3Y2.1%
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 decreasing.
- 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
- A Price/Earnings ratio of 21.36 indicates a rather expensive valuation of PSN.
- 60.67% of the companies in the same industry are more expensive than PSN, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.18, PSN is valued a bit cheaper.
- PSN is valuated rather expensively with a Price/Forward Earnings ratio of 20.01.
- PSN's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.51, PSN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 20.01 |
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 69.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.01 | ||
| EV/EBITDA | 15.5 |
4.3 Compensation for Growth
- PSN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.54
EPS Next 2Y2.21%
EPS Next 3Y5.75%
5. Dividend
5.1 Amount
- PSN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
68.34
0 (0%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)11-05 2025-11-05/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners107.32%
Inst Owner Change-1.15%
Ins Owners1.09%
Ins Owner Change-0.92%
Market Cap7.28B
Revenue(TTM)6.49B
Net Income(TTM)386.84M
Analysts82.22
Price Target86.69 (26.85%)
Short Float %N/A
Short RatioN/A
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)-1.25%
PT rev (3m)-6.66%
EPS NQ rev (1m)-1.19%
EPS NQ rev (3m)-12.81%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)-0.82%
Revenue NQ rev (3m)-5.71%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.36 | ||
| Fwd PE | 20.01 | ||
| P/S | 1.12 | ||
| P/FCF | 19.01 | ||
| P/OCF | 16.63 | ||
| P/B | 2.85 | ||
| P/tB | 132.48 | ||
| EV/EBITDA | 15.5 |
EPS(TTM)3.2
EY4.68%
EPS(NY)3.42
Fwd EY5%
FCF(TTM)3.6
FCFY5.26%
OCF(TTM)4.11
OCFY6.01%
SpS60.99
BVpS24.02
TBVpS0.52
PEG (NY)N/A
PEG (5Y)1.54
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 | 3.11 |
F-Score7
WACC8.17%
ROIC/WACC0.96
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-0.71%
EPS Next 2Y2.21%
EPS Next 3Y5.75%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y22.63%
Revenue growth 5Y11.29%
Sales Q2Q%-10.41%
Revenue Next Year-5.07%
Revenue Next 2Y-0.82%
Revenue Next 3Y2.1%
Revenue Next 5YN/A
EBIT growth 1Y-13.59%
EBIT growth 3Y67.83%
EBIT growth 5Y49.38%
EBIT Next Year38.35%
EBIT Next 3Y16.95%
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 5 / 10 to PSN.
What is the valuation status of PARSONS CORP (PSN) stock?
ChartMill assigns a valuation rating of 4 / 10 to PARSONS CORP (PSN). This can be considered as Fairly Valued.
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 -0.71% 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%.