PARSONS CORP (PSN) Stock Fundamental Analysis
NYSE:PSN - New York Stock Exchange, Inc. - US70202L1026 - Common Stock - Currency: USD
Overall PSN gets a fundamental rating of 5 out of 10. We evaluated PSN against 82 industry peers in the Professional Services industry. While PSN belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 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.
In the past 5 years PSN always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 7.49%, PSN is doing good in the industry, outperforming 71.95% of the companies in the same industry.
PSN's Return On Equity of 16.63% is fine compared to the rest of the industry. PSN outperforms 65.85% of its industry peers.
The Return On Invested Capital of PSN (8.96%) is better than 67.07% of its industry peers.
PSN had an Average Return On Invested Capital over the past 3 years of 6.99%. This is significantly below the industry average of 12.61%.
The last Return On Invested Capital (8.96%) for PSN is above the 3 year average (6.99%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.49% | ||
| ROE | 16.63% | ||
| ROIC | 8.96% |
ROA(3y)3.31%
ROA(5y)2.82%
ROE(3y)7.17%
ROE(5y)6.06%
ROIC(3y)6.99%
ROIC(5y)5.6%
1.3 Margins
With a decent Profit Margin value of 6.03%, PSN is doing good in the industry, outperforming 68.29% of the companies in the same industry.
PSN's Profit Margin has improved in the last couple of years.
PSN's Operating Margin of 6.74% is fine compared to the rest of the industry. PSN outperforms 60.98% of its industry peers.
In the last couple of years the Operating Margin of PSN has grown nicely.
With a Gross Margin value of 21.21%, PSN is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
PSN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.74% | ||
| PM (TTM) | 6.03% | ||
| GM | 21.21% |
OM growth 3Y36.85%
OM growth 5Y34.22%
PM growth 3Y25.74%
PM growth 5Y2.7%
GM growth 3Y-3.65%
GM growth 5Y-0.19%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PSN is still creating some value.
Compared to 1 year ago, PSN has more shares outstanding
The number of shares outstanding for PSN has been increased compared to 5 years ago.
PSN has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.25 indicates that PSN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.25, PSN is doing good in the industry, outperforming 65.85% of the companies in the same industry.
The Debt to FCF ratio of PSN is 2.36, which is a good value as it means it would take PSN, 2.36 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PSN (2.36) is better than 67.07% of its industry peers.
PSN has a Debt/Equity ratio of 0.50. This is a neutral value indicating PSN is somewhat dependend on debt financing.
The Debt to Equity ratio of PSN (0.50) is comparable to the rest of the industry.
Even though the debt/equity ratio score it not favorable for PSN, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 3.25 |
ROIC/WACC1.08
WACC8.29%
2.3 Liquidity
A Current Ratio of 1.29 indicates that PSN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.29, PSN perfoms like the industry average, outperforming 46.34% of the companies in the same industry.
A Quick Ratio of 1.29 indicates that PSN should not have too much problems paying its short term obligations.
PSN has a Quick ratio (1.29) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.62% over the past year.
Measured over the past years, PSN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.84% on average per year.
The Revenue has grown by 16.61% in the past year. This is quite good.
The Revenue has been growing by 11.29% on average over the past years. This is quite good.
EPS 1Y (TTM)23.62%
EPS 3Y32.68%
EPS 5Y13.84%
EPS Q2Q%11.43%
Revenue 1Y (TTM)16.61%
Revenue growth 3Y22.63%
Revenue growth 5Y11.29%
Sales Q2Q%1.22%
3.2 Future
Based on estimates for the next years, PSN will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.31% on average per year.
PSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.17% yearly.
EPS Next Y8.96%
EPS Next 2Y8.84%
EPS Next 3Y11.31%
EPS Next 5YN/A
Revenue Next Year3.68%
Revenue Next 2Y4.08%
Revenue Next 3Y5.17%
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 stable.
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
With a Price/Earnings ratio of 20.82, PSN is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of PSN is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.31, PSN is valued a bit cheaper.
The Price/Forward Earnings ratio is 18.01, which indicates a rather expensive current valuation of PSN.
The rest of the industry has a similar Price/Forward Earnings ratio as PSN.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, PSN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.82 | ||
| Fwd PE | 18.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PSN is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, PSN is valued a bit cheaper than the industry average as 69.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.27 | ||
| EV/EBITDA | 14.33 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PSN does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of PSN may justify a higher PE ratio.
PEG (NY)2.32
PEG (5Y)1.5
EPS Next 2Y8.84%
EPS Next 3Y11.31%
5. Dividend
5.1 Amount
No dividends for PSN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
69.74
-0.64 (-0.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners102.47%
Inst Owner Change4.89%
Ins Owners1.1%
Ins Owner Change13.08%
Market Cap7.45B
Analysts76
Price Target82.4 (18.15%)
Short Float %6.38%
Short Ratio4.68
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)1
Avg EPS beat(2)-5.67%
Min EPS beat(2)-15.41%
Max EPS beat(2)4.08%
EPS beat(4)3
Avg EPS beat(4)6.48%
Min EPS beat(4)-15.41%
Max EPS beat(4)19.84%
EPS beat(8)7
Avg EPS beat(8)10.05%
EPS beat(12)7
Avg EPS beat(12)5.5%
EPS beat(16)9
Avg EPS beat(16)1.56%
Revenue beat(2)0
Avg Revenue beat(2)-3.81%
Min Revenue beat(2)-5.34%
Max Revenue beat(2)-2.29%
Revenue beat(4)2
Avg Revenue beat(4)2.26%
Min Revenue beat(4)-5.34%
Max Revenue beat(4)9.5%
Revenue beat(8)6
Avg Revenue beat(8)7.67%
Revenue beat(12)10
Avg Revenue beat(12)7.38%
Revenue beat(16)11
Avg Revenue beat(16)5.09%
PT rev (1m)0.69%
PT rev (3m)-11.34%
EPS NQ rev (1m)-2.98%
EPS NQ rev (3m)-15.11%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.91%
Revenue NQ rev (1m)-3.7%
Revenue NQ rev (3m)-8.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.82 | ||
| Fwd PE | 18.01 | ||
| P/S | 1.1 | ||
| P/FCF | 14.27 | ||
| P/OCF | 12.96 | ||
| P/B | 3.04 | ||
| P/tB | 1064.73 | ||
| EV/EBITDA | 14.33 |
EPS(TTM)3.35
EY4.8%
EPS(NY)3.87
Fwd EY5.55%
FCF(TTM)4.89
FCFY7.01%
OCF(TTM)5.38
OCFY7.71%
SpS63.34
BVpS22.96
TBVpS0.07
PEG (NY)2.32
PEG (5Y)1.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.49% | ||
| ROE | 16.63% | ||
| ROCE | 12.72% | ||
| ROIC | 8.96% | ||
| ROICexc | 9.6% | ||
| ROICexgc | 27.64% | ||
| OM | 6.74% | ||
| PM (TTM) | 6.03% | ||
| GM | 21.21% | ||
| FCFM | 7.72% |
ROA(3y)3.31%
ROA(5y)2.82%
ROE(3y)7.17%
ROE(5y)6.06%
ROIC(3y)6.99%
ROIC(5y)5.6%
ROICexc(3y)7.72%
ROICexc(5y)6.29%
ROICexgc(3y)23.64%
ROICexgc(5y)18.97%
ROCE(3y)9.34%
ROCE(5y)7.4%
ROICexcg growth 3Y51.02%
ROICexcg growth 5Y39.5%
ROICexc growth 3Y48.02%
ROICexc growth 5Y34.54%
OM growth 3Y36.85%
OM growth 5Y34.22%
PM growth 3Y25.74%
PM growth 5Y2.7%
GM growth 3Y-3.65%
GM growth 5Y-0.19%
F-Score7
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 2.36 | ||
| Debt/EBITDA | 2.2 | ||
| Cap/Depr | 52.04% | ||
| Cap/Sales | 0.78% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.23% | ||
| Profit Quality | 128.05% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 3.25 |
F-Score7
WACC8.29%
ROIC/WACC1.08
Cap/Depr(3y)36.07%
Cap/Depr(5y)29.88%
Cap/Sales(3y)0.73%
Cap/Sales(5y)0.73%
Profit Quality(3y)214.89%
Profit Quality(5y)238.32%
High Growth Momentum
Growth
EPS 1Y (TTM)23.62%
EPS 3Y32.68%
EPS 5Y13.84%
EPS Q2Q%11.43%
EPS Next Y8.96%
EPS Next 2Y8.84%
EPS Next 3Y11.31%
EPS Next 5YN/A
Revenue 1Y (TTM)16.61%
Revenue growth 3Y22.63%
Revenue growth 5Y11.29%
Sales Q2Q%1.22%
Revenue Next Year3.68%
Revenue Next 2Y4.08%
Revenue Next 3Y5.17%
Revenue Next 5YN/A
EBIT growth 1Y19.04%
EBIT growth 3Y67.82%
EBIT growth 5Y49.37%
EBIT Next Year46.62%
EBIT Next 3Y21.35%
EBIT Next 5YN/A
FCF growth 1Y137.47%
FCF growth 3Y37.06%
FCF growth 5Y25.5%
OCF growth 1Y126.2%
OCF growth 3Y36.6%
OCF growth 5Y18.93%