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 has a great profitability rating, there are some minor concerns on its financial health. PSN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PSN was profitable.
In the past year PSN had a positive cash flow from operations.
In the past 5 years PSN has always been profitable.
Each year in the past 5 years PSN had a positive operating cash flow.
1.2 Ratios
PSN's Return On Assets of 7.49% is fine compared to the rest of the industry. PSN outperforms 73.17% of its industry peers.
PSN has a Return On Equity of 16.63%. This is in the better half of the industry: PSN outperforms 67.07% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.96%, PSN is in the better half of the industry, outperforming 67.07% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PSN is significantly below the industry average of 12.27%.
The 3 year average ROIC (6.99%) for PSN is below the current ROIC(8.96%), indicating increased profibility in the last year.
| 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
The Profit Margin of PSN (6.03%) is better than 69.51% of its industry peers.
In the last couple of years the Profit Margin of PSN has grown nicely.
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.
Looking at the Gross Margin, with a value of 21.21%, PSN is doing worse than 70.73% of the companies in the same industry.
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
PSN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
PSN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PSN has more shares outstanding
PSN has a worse debt/assets ratio than last year.
2.2 Solvency
PSN has an Altman-Z score of 3.37. This indicates that PSN is financially healthy and has little risk of bankruptcy at the moment.
PSN's Altman-Z score of 3.37 is fine compared to the rest of the industry. PSN outperforms 64.63% of its industry peers.
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.
With a decent Debt to FCF ratio value of 2.36, PSN is doing good in the industry, outperforming 68.29% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that PSN is somewhat dependend on debt financing.
PSN's Debt to Equity ratio of 0.50 is in line compared to the rest of the industry. PSN outperforms 46.34% of its industry peers.
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 | 3.37 |
ROIC/WACC1.05
WACC8.55%
2.3 Liquidity
A Current Ratio of 1.29 indicates that PSN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.29, PSN is in line with its industry, outperforming 46.34% of the companies in the same industry.
PSN has a Quick Ratio of 1.29. This is a normal value and indicates that PSN is financially healthy and should not expect problems in meeting its short term obligations.
PSN's Quick ratio of 1.29 is in line compared to the rest of the industry. PSN outperforms 46.34% of 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.
PSN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.84% yearly.
The Revenue has grown by 16.61% in the past year. This is quite good.
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)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
The Earnings Per Share is expected to grow by 8.37% on average over the next years. This is quite good.
Based on estimates for the next years, PSN will show a small growth in Revenue. The Revenue will grow by 3.85% on average per year.
EPS Next Y-0.54%
EPS Next 2Y3.49%
EPS Next 3Y8.37%
EPS Next 5YN/A
Revenue Next Year-1.52%
Revenue Next 2Y0.81%
Revenue Next 3Y3.85%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.32, which indicates a rather expensive current valuation of PSN.
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 27.30, PSN is valued at the same level.
The Price/Forward Earnings ratio is 21.35, which indicates a rather expensive current valuation of PSN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PSN is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, PSN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.32 | ||
| Fwd PE | 21.35 |
4.2 Price Multiples
PSN's Enterprise Value to EBITDA is on the same level as the industry average.
PSN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PSN is cheaper than 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.3 | ||
| EV/EBITDA | 15.39 |
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)1.61
EPS Next 2Y3.49%
EPS Next 3Y8.37%
5. Dividend
5.1 Amount
PSN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
74.78
-0.49 (-0.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners102.47%
Inst Owner Change-0.02%
Ins Owners1.1%
Ins Owner Change13.81%
Market Cap7.99B
Analysts76
Price Target81.72 (9.28%)
Short Float %5.83%
Short Ratio4.14
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)-0.14%
PT rev (3m)-9.2%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-15.11%
EPS NY rev (1m)-8.72%
EPS NY rev (3m)-12.02%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-8.44%
Revenue NY rev (1m)-5.02%
Revenue NY rev (3m)-7.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.32 | ||
| Fwd PE | 21.35 | ||
| P/S | 1.18 | ||
| P/FCF | 15.3 | ||
| P/OCF | 13.9 | ||
| P/B | 3.26 | ||
| P/tB | 1141.68 | ||
| EV/EBITDA | 15.39 |
EPS(TTM)3.35
EY4.48%
EPS(NY)3.5
Fwd EY4.68%
FCF(TTM)4.89
FCFY6.54%
OCF(TTM)5.38
OCFY7.19%
SpS63.34
BVpS22.96
TBVpS0.07
PEG (NY)N/A
PEG (5Y)1.61
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 | 3.37 |
F-Score7
WACC8.55%
ROIC/WACC1.05
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 Y-0.54%
EPS Next 2Y3.49%
EPS Next 3Y8.37%
EPS Next 5YN/A
Revenue 1Y (TTM)16.61%
Revenue growth 3Y22.63%
Revenue growth 5Y11.29%
Sales Q2Q%1.22%
Revenue Next Year-1.52%
Revenue Next 2Y0.81%
Revenue Next 3Y3.85%
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%