PARSONS CORP (PSN) Stock Fundamental Analysis
NYSE:PSN - US70202L1026 - Common Stock
79.82 USD
+1.19 (+1.51%)
75.567 USD
-4.25 (-5.33%)
Taking everything into account, PSN scores 5 out of 10 in our fundamental rating. PSN was compared to 81 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.
In the past year PSN had a positive cash flow from operations.
PSN had positive earnings in each of the past 5 years.
In the past 5 years PSN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PSN (6.90%) is better than 70.37% of its industry peers.
PSN's Return On Equity of 15.69% is fine compared to the rest of the industry. PSN outperforms 66.67% of its industry peers.
PSN's Return On Invested Capital of 8.00% is in line compared to the rest of the industry. PSN outperforms 55.56% 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 12.50%.
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
With a decent Profit Margin value of 5.91%, PSN is doing good in the industry, outperforming 69.14% of the companies in the same industry.
PSN's Profit Margin has improved in the last couple of years.
The Operating Margin of PSN (6.37%) is comparable to the rest of the industry.
PSN's Operating Margin has improved in the last couple of years.
The Gross Margin of PSN (21.43%) is worse than 71.60% of its industry peers.
PSN's Gross Margin has been stable in the last couple of years.
| 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
PSN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PSN has more shares outstanding than it did 1 year ago.
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 3.35 indicates that PSN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.35, PSN is doing good in the industry, outperforming 61.73% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 2.56, PSN is in the better half of the industry, outperforming 65.43% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that PSN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, PSN perfoms like the industry average, outperforming 46.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.56 | ||
| Altman-Z | 3.35 |
ROIC/WACC0.97
WACC8.25%
2.3 Liquidity
A Current Ratio of 1.61 indicates that PSN should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.61, PSN is doing good in the industry, outperforming 60.49% of the companies in the same industry.
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 62.96% of its industry peers.
| 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.
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.
Looking at the last year, PSN shows a quite strong growth in Revenue. The Revenue has grown by 9.22% in the last year.
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
Based on estimates for the next years, PSN will show a small growth in Earnings Per Share. The EPS will grow by 7.12% on average per year.
PSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.82% yearly.
EPS Next Y-0.58%
EPS Next 2Y4.54%
EPS Next 3Y7.12%
EPS Next 5YN/A
Revenue Next Year-2.97%
Revenue Next 2Y1.41%
Revenue Next 3Y2.82%
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 24.26 indicates a rather expensive valuation of PSN.
PSN's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of PSN to the average of the S&P500 Index (27.24), we can say PSN is valued inline with the index average.
A Price/Forward Earnings ratio of 22.34 indicates a rather expensive valuation of PSN.
PSN's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of PSN to the average of the S&P500 Index (35.82), we can say PSN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.26 | ||
| Fwd PE | 22.34 |
4.2 Price Multiples
PSN's Enterprise Value to EBITDA ratio is in line with the industry average.
PSN's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PSN is cheaper than 65.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.38 | ||
| EV/EBITDA | 17.6 |
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)1.75
EPS Next 2Y4.54%
EPS Next 3Y7.12%
5. Dividend
5.1 Amount
No dividends for PSN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
79.82
+1.19 (+1.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners103.55%
Inst Owner Change2.58%
Ins Owners1.1%
Ins Owner Change13.29%
Market Cap8.52B
Analysts76
Price Target89.07 (11.59%)
Short Float %6.2%
Short Ratio6.02
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)6.29%
PT rev (3m)8.83%
EPS NQ rev (1m)-4.62%
EPS NQ rev (3m)-24.02%
EPS NY rev (1m)0.64%
EPS NY rev (3m)-8.75%
Revenue NQ rev (1m)-0.53%
Revenue NQ rev (3m)-12.34%
Revenue NY rev (1m)-1.31%
Revenue NY rev (3m)-6.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.26 | ||
| Fwd PE | 22.34 | ||
| P/S | 1.28 | ||
| P/FCF | 16.38 | ||
| P/OCF | 14.86 | ||
| P/B | 3.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.6 |
EPS(TTM)3.29
EY4.12%
EPS(NY)3.57
Fwd EY4.48%
FCF(TTM)4.87
FCFY6.11%
OCF(TTM)5.37
OCFY6.73%
SpS62.58
BVpS23.56
TBVpS-0.07
PEG (NY)N/A
PEG (5Y)1.75
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%
ROICexcg growth 3Y50.98%
ROICexcg 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 | 3.35 |
F-Score7
WACC8.25%
ROIC/WACC0.97
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-0.58%
EPS Next 2Y4.54%
EPS Next 3Y7.12%
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 3Y2.82%
Revenue Next 5YN/A
EBIT growth 1Y-2.09%
EBIT growth 3Y67.83%
EBIT growth 5Y49.38%
EBIT Next Year40.46%
EBIT Next 3Y19.15%
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%