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PARSONS CORP (PSN) Stock Fundamental Analysis

USA - NYSE:PSN - US70202L1026 - Common Stock

84.16 USD
-0.16 (-0.19%)
Last: 10/24/2025, 8:04:00 PM
84.16 USD
0 (0%)
After Hours: 10/24/2025, 8:04:00 PM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to PSN. PSN was compared to 86 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. While showing a medium growth rate, PSN is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

In the past year PSN was profitable.
PSN had a positive operating cash flow in the past year.
Each year in the past 5 years PSN has been profitable.
PSN had a positive operating cash flow in each of the past 5 years.
PSN Yearly Net Income VS EBIT VS OCF VS FCFPSN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M 400M 500M

1.2 Ratios

With a decent Return On Assets value of 6.90%, PSN is doing good in the industry, outperforming 69.77% of the companies in the same industry.
The Return On Equity of PSN (15.69%) is better than 68.60% of its industry peers.
PSN has a Return On Invested Capital (8.00%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for PSN is significantly below the industry average of 13.28%.
The last Return On Invested Capital (8.00%) for PSN is above the 3 year average (6.99%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.9%
ROE 15.69%
ROIC 8%
ROA(3y)3.31%
ROA(5y)2.82%
ROE(3y)7.17%
ROE(5y)6.06%
ROIC(3y)6.99%
ROIC(5y)5.59%
PSN Yearly ROA, ROE, ROICPSN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

Looking at the Profit Margin, with a value of 5.91%, PSN is in the better half of the industry, outperforming 68.60% of the companies in the same industry.
PSN's Profit Margin has improved in the last couple of years.
PSN has a Operating Margin (6.37%) which is in line with its industry peers.
PSN's Operating Margin has improved in the last couple of years.
PSN has a worse Gross Margin (21.43%) than 70.93% 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 RankSector Rank
OM 6.37%
PM (TTM) 5.91%
GM 21.43%
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%
PSN Yearly Profit, Operating, Gross MarginsPSN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15 20

5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
PSN Yearly Shares OutstandingPSN Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
PSN Yearly Total Debt VS Total AssetsPSN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.2 Solvency

An Altman-Z score of 3.44 indicates that PSN is not in any danger for bankruptcy at the moment.
The Altman-Z score of PSN (3.44) is better than 66.28% of its industry peers.
PSN has a debt to FCF ratio of 2.56. This is a good value and a sign of high solvency as PSN would need 2.56 years to pay back of all of its debts.
PSN has a Debt to FCF ratio of 2.56. This is in the better half of the industry: PSN outperforms 66.28% of its industry peers.
PSN has a Debt/Equity ratio of 0.53. This is a neutral value indicating PSN is somewhat dependend on debt financing.
PSN's Debt to Equity ratio of 0.53 is in line compared to the rest of the industry. PSN outperforms 47.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 2.56
Altman-Z 3.44
ROIC/WACC0.99
WACC8.06%
PSN Yearly LT Debt VS Equity VS FCFPSN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.3 Liquidity

PSN has a Current Ratio of 1.61. 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 Current ratio of 1.61 is fine compared to the rest of the industry. PSN outperforms 60.47% of its industry peers.
PSN has a Quick Ratio of 1.61. 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 of 1.61. This is in the better half of the industry: PSN outperforms 62.79% of its industry peers.
Industry RankSector Rank
Current Ratio 1.61
Quick Ratio 1.61
PSN Yearly Current Assets VS Current LiabilitesPSN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

5

3. Growth

3.1 Past

PSN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.67%, which is quite good.
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 9.22% in the past year. This is quite good.
Measured over the past years, PSN shows a quite strong growth in Revenue. The Revenue has been growing by 11.29% on average per year.
EPS 1Y (TTM)12.67%
EPS 3Y32.68%
EPS 5Y13.84%
EPS Q2Q%-7.14%
Revenue 1Y (TTM)9.22%
Revenue growth 3Y22.63%
Revenue growth 5Y11.29%
Sales Q2Q%-5.16%

3.2 Future

PSN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.15% yearly.
PSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.87% yearly.
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

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.
PSN Yearly Revenue VS EstimatesPSN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B
PSN Yearly EPS VS EstimatesPSN Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4

3

4. Valuation

4.1 Price/Earnings Ratio

PSN is valuated quite expensively with a Price/Earnings ratio of 25.58.
PSN's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.89, PSN is valued at the same level.
Based on the Price/Forward Earnings ratio of 23.49, 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 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 25.58
Fwd PE 23.49
PSN Price Earnings VS Forward Price EarningsPSN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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.
PSN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PSN is cheaper than 67.44% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.27
EV/EBITDA 18.47
PSN Per share dataPSN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

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)1.85
EPS Next 2Y4.67%
EPS Next 3Y7.15%

0

5. Dividend

5.1 Amount

No dividends for PSN!.
Industry RankSector Rank
Dividend Yield N/A

PARSONS CORP

NYSE:PSN (10/24/2025, 8:04:00 PM)

After market: 84.16 0 (0%)

84.16

-0.16 (-0.19%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)08-06 2025-08-06/bmo
Earnings (Next)11-05 2025-11-05/bmo
Inst Owners106.12%
Inst Owner Change0.11%
Ins Owners1.09%
Ins Owner Change-0.43%
Market Cap8.99B
Revenue(TTM)6.68B
Net Income(TTM)394.67M
Analysts80
Price Target89.61 (6.48%)
Short Float %6.07%
Short Ratio6.66
Dividend
Industry RankSector 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)4.33%
Min EPS beat(2)4.08%
Max EPS beat(2)4.59%
EPS beat(4)3
Avg EPS beat(4)2.67%
Min EPS beat(4)-15.41%
Max EPS beat(4)17.43%
EPS beat(8)7
Avg EPS beat(8)7.72%
EPS beat(12)8
Avg EPS beat(12)5.98%
EPS beat(16)10
Avg EPS beat(16)4.21%
Revenue beat(2)0
Avg Revenue beat(2)-3.59%
Min Revenue beat(2)-5.34%
Max Revenue beat(2)-1.84%
Revenue beat(4)1
Avg Revenue beat(4)0.01%
Min Revenue beat(4)-5.34%
Max Revenue beat(4)9.5%
Revenue beat(8)5
Avg Revenue beat(8)5.06%
Revenue beat(12)9
Avg Revenue beat(12)6.6%
Revenue beat(16)11
Avg Revenue beat(16)5.69%
PT rev (1m)0.92%
PT rev (3m)6.94%
EPS NQ rev (1m)-0.4%
EPS NQ rev (3m)-6.15%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)0.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.31%
Valuation
Industry RankSector Rank
PE 25.58
Fwd PE 23.49
P/S 1.34
P/FCF 17.27
P/OCF 15.67
P/B 3.57
P/tB N/A
EV/EBITDA 18.47
EPS(TTM)3.29
EY3.91%
EPS(NY)3.58
Fwd EY4.26%
FCF(TTM)4.87
FCFY5.79%
OCF(TTM)5.37
OCFY6.38%
SpS62.58
BVpS23.56
TBVpS-0.07
PEG (NY)N/A
PEG (5Y)1.85
Graham Number41.76
Profitability
Industry RankSector Rank
ROA 6.9%
ROE 15.69%
ROCE 10.34%
ROIC 8%
ROICexc 8.86%
ROICexgc 26.56%
OM 6.37%
PM (TTM) 5.91%
GM 21.43%
FCFM 7.79%
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 Turnover1.17
Health
Industry RankSector Rank
Debt/Equity 0.53
Debt/FCF 2.56
Debt/EBITDA 2.5
Cap/Depr 50%
Cap/Sales 0.79%
Interest Coverage 250
Cash Conversion 107.88%
Profit Quality 131.88%
Current Ratio 1.61
Quick Ratio 1.61
Altman-Z 3.44
F-Score7
WACC8.06%
ROIC/WACC0.99
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)12.67%
EPS 3Y32.68%
EPS 5Y13.84%
EPS Q2Q%-7.14%
EPS Next Y-0.76%
EPS Next 2Y4.67%
EPS Next 3Y7.15%
EPS Next 5YN/A
Revenue 1Y (TTM)9.22%
Revenue growth 3Y22.63%
Revenue growth 5Y11.29%
Sales Q2Q%-5.16%
Revenue Next Year-2.97%
Revenue Next 2Y1.41%
Revenue Next 3Y2.87%
Revenue Next 5YN/A
EBIT growth 1Y-2.09%
EBIT growth 3Y67.83%
EBIT growth 5Y49.38%
EBIT Next Year39.88%
EBIT Next 3Y17.88%
EBIT Next 5YN/A
FCF growth 1Y172.23%
FCF growth 3Y37%
FCF growth 5Y25.46%
OCF growth 1Y153.59%
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.


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%.