PARSONS CORP (PSN) Stock Fundamental Analysis
USA - NYSE:PSN - US70202L1026 - Common Stock
81.68 USD
-0.32 (-0.39%)
81.68 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to PSN. PSN was compared to 87 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 is valied quite expensively at the moment, while it does show a decent 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.
Each year in the past 5 years PSN has been profitable.
Each year in the past 5 years PSN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PSN (6.74%) is better than 65.52% of its industry peers.
With a decent Return On Equity value of 15.12%, PSN is doing good in the industry, outperforming 65.52% of the companies in the same industry.
PSN's Return On Invested Capital of 7.82% is in line compared to the rest of the industry. PSN outperforms 56.32% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PSN is significantly below the industry average of 22.56%.
The last Return On Invested Capital (7.82%) for PSN is above the 3 year average (6.99%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 5.96%. This is in the better half of the industry: PSN outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of PSN has grown nicely.
Looking at the Operating Margin, with a value of 6.33%, PSN is in line with its industry, outperforming 55.17% of the companies in the same industry.
In the last couple of years the Operating Margin of PSN has grown nicely.
PSN's Gross Margin of 22.05% is on the low side compared to the rest of the industry. PSN is outperformed by 70.11% of its industry peers.
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.
The number of shares outstanding for PSN has been increased compared to 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
An Altman-Z score of 3.39 indicates that PSN is not in any danger for bankruptcy at the moment.
PSN's Altman-Z score of 3.39 is fine compared to the rest of the industry. PSN outperforms 67.82% of its industry peers.
The Debt to FCF ratio of PSN is 3.26, which is a good value as it means it would take PSN, 3.26 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PSN (3.26) is better than 63.22% 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.
The Debt to Equity ratio of PSN (0.49) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | 3.39 |
ROIC/WACC0.96
WACC8.12%
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.
PSN has a better Current ratio (1.67) than 62.07% of its industry peers.
A Quick Ratio of 1.67 indicates that PSN should not have too much problems paying its short term obligations.
The Quick ratio of PSN (1.67) is better than 62.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.67 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
PSN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.63%.
The Earnings Per Share has been growing by 13.84% on average over the past years. This is quite good.
The Revenue has decreased by -0.24% in the past year.
PSN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.29% yearly.
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
The Earnings Per Share is expected to grow by 7.15% on average over the next years.
Based on estimates for the next years, PSN will show a small growth in Revenue. The Revenue will grow by 2.87% on average per year.
EPS Next Y-0.76%
EPS Next 2Y4.67%
EPS Next 3Y7.15%
EPS Next 5YN/A
Revenue Next Year-2.97%
Revenue Next 2Y1.41%
Revenue Next 3Y2.87%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
PSN is valuated quite expensively with a Price/Earnings ratio of 25.53.
PSN's Price/Earnings ratio is in line with the industry average.
PSN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.45.
Based on the Price/Forward Earnings ratio of 22.80, the valuation of PSN can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as PSN.
PSN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.53 | ||
| Fwd PE | 22.8 |
4.2 Price Multiples
PSN's Enterprise Value to EBITDA ratio is in line with the industry average.
63.22% of the companies in the same industry are more expensive than PSN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.78 | ||
| EV/EBITDA | 18.33 |
4.3 Compensation for Growth
The decent profitability rating of PSN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.84
EPS Next 2Y4.67%
EPS Next 3Y7.15%
5. Dividend
5.1 Amount
PSN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
81.68
-0.32 (-0.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners106.12%
Inst Owner Change13.05%
Ins Owners1.09%
Ins Owner Change-0.43%
Market Cap8.72B
Revenue(TTM)6.49B
Net Income(TTM)386.84M
Analysts80
Price Target92.87 (13.7%)
Short Float %5.6%
Short Ratio5.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)3.64%
PT rev (3m)8.69%
EPS NQ rev (1m)-7.82%
EPS NQ rev (3m)-3.91%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)-3.25%
Revenue NQ rev (3m)-2.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.53 | ||
| Fwd PE | 22.8 | ||
| P/S | 1.34 | ||
| P/FCF | 22.78 | ||
| P/OCF | 19.93 | ||
| P/B | 3.41 | ||
| P/tB | 158.78 | ||
| EV/EBITDA | 18.33 |
EPS(TTM)3.2
EY3.92%
EPS(NY)3.58
Fwd EY4.39%
FCF(TTM)3.58
FCFY4.39%
OCF(TTM)4.1
OCFY5.02%
SpS60.82
BVpS23.95
TBVpS0.51
PEG (NY)N/A
PEG (5Y)1.84
Graham Number41.53
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 | 3.39 |
F-Score7
WACC8.12%
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-0.76%
EPS Next 2Y4.67%
EPS Next 3Y7.15%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.24%
Revenue growth 3Y22.63%
Revenue growth 5Y11.29%
Sales Q2Q%-10.41%
Revenue Next Year-2.97%
Revenue Next 2Y1.41%
Revenue Next 3Y2.87%
Revenue Next 5YN/A
EBIT growth 1Y-13.59%
EBIT growth 3Y67.83%
EBIT growth 5Y49.38%
EBIT Next Year39.88%
EBIT Next 3Y17.88%
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 4 / 10 to PSN.
Can you provide the valuation status for PARSONS CORP?
ChartMill assigns a valuation rating of 3 / 10 to PARSONS CORP (PSN). This can be considered as Overvalued.
What is the profitability of PSN stock?
PARSONS CORP (PSN) has a profitability rating of 6 / 10.
What is the financial health of PARSONS CORP (PSN) stock?
The financial health rating of PARSONS CORP (PSN) is 5 / 10.
Is the dividend of PARSONS CORP sustainable?
The dividend rating of PARSONS CORP (PSN) is 0 / 10 and the dividend payout ratio is 0%.