PARSONS CORP (PSN) Stock Fundamental Analysis
USA - NYSE:PSN - US70202L1026 - Common Stock
83.345 USD
-0.59 (-0.7%)
Overall PSN gets a fundamental rating of 5 out of 10. We evaluated PSN against 86 industry peers in the Professional Services industry. PSN has an average financial health and profitability rating. While showing a medium growth rate, PSN is valued expensive at the moment.
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
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 of 8.00%. This is comparable to the rest of the industry: PSN outperforms 56.98% 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 13.31%.
The 3 year average ROIC (6.99%) for PSN is below the current ROIC(8.00%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of PSN (5.91%) is better than 68.60% 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 6.37%, PSN is in line with its industry, outperforming 56.98% 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 21.43% is on the low side compared to the rest of the industry. PSN is outperformed by 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 Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PSN is destroying value.
The number of shares outstanding for PSN has been increased compared to 1 year ago.
The number of shares outstanding for PSN has been increased compared to 5 years ago.
Compared to 1 year ago, PSN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.43 indicates that PSN is not in any danger for bankruptcy at the moment.
PSN has a better Altman-Z score (3.43) than 65.12% of its industry peers.
The Debt to FCF ratio of PSN is 2.56, which is a good value as it means it would take PSN, 2.56 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.56, PSN is doing good in the industry, outperforming 66.28% of the companies in the same industry.
PSN has a Debt/Equity ratio of 0.53. This is a neutral value indicating PSN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, PSN perfoms like the industry average, outperforming 47.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.56 | ||
| Altman-Z | 3.43 |
ROIC/WACC0.99
WACC8.06%
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.
Looking at the Quick ratio, with a value of 1.61, PSN is in the better half of the industry, outperforming 62.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.67% 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.
Looking at the last year, PSN shows a quite strong growth in Revenue. The Revenue has grown by 9.22% in the last 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)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
The Earnings Per Share is expected to grow by 7.15% on average over the next years.
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
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
A Price/Earnings ratio of 25.33 indicates a quite expensive valuation of PSN.
PSN's Price/Earnings ratio is in line with the industry average.
PSN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 23.26, the valuation of PSN can be described as rather expensive.
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 23.09, PSN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.33 | ||
| Fwd PE | 23.26 |
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 66.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.1 | ||
| EV/EBITDA | 18.43 |
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)1.83
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 |
NYSE:PSN (10/28/2025, 9:52:50 AM)
83.345
-0.59 (-0.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners106.12%
Inst Owner Change-0.1%
Ins Owners1.09%
Ins Owner Change-0.43%
Market Cap8.90B
Revenue(TTM)6.68B
Net Income(TTM)394.67M
Analysts80
Price Target89.61 (7.52%)
Short Float %6.33%
Short Ratio6.94
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)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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.33 | ||
| Fwd PE | 23.26 | ||
| P/S | 1.33 | ||
| P/FCF | 17.1 | ||
| P/OCF | 15.52 | ||
| P/B | 3.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.43 |
EPS(TTM)3.29
EY3.95%
EPS(NY)3.58
Fwd EY4.3%
FCF(TTM)4.87
FCFY5.85%
OCF(TTM)5.37
OCFY6.44%
SpS62.58
BVpS23.56
TBVpS-0.07
PEG (NY)N/A
PEG (5Y)1.83
Graham Number41.76
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.43 |
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%.