PARSONS CORP (PSN) Fundamental Analysis & Valuation

NYSE:PSN • US70202L1026

Current stock price

53 USD
+0.49 (+0.93%)
Last:

This PSN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. PSN Profitability Analysis

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.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M 200M 300M 400M 500M

1.2 Ratios

  • The Return On Assets of PSN (4.18%) is comparable to the rest of the industry.
  • PSN has a Return On Equity (9.13%) which is in line with its industry peers.
  • PSN has a Return On Invested Capital of 7.83%. This is comparable to the rest of the industry: PSN outperforms 54.02% of its industry peers.
  • PSN had an Average Return On Invested Capital over the past 3 years of 8.23%. This is below the industry average of 13.12%.
Industry RankSector Rank
ROA 4.18%
ROE 9.13%
ROIC 7.83%
ROA(3y)3.94%
ROA(5y)3.16%
ROE(3y)8.63%
ROE(5y)6.8%
ROIC(3y)8.23%
ROIC(5y)6.36%
PSN Yearly ROA, ROE, ROICPSN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • Looking at the Profit Margin, with a value of 3.79%, PSN is in line with its industry, outperforming 54.02% of the companies in the same industry.
  • PSN's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 6.53%, PSN is in line with its industry, outperforming 55.17% of the companies in the same industry.
  • PSN's Operating Margin has improved in the last couple of years.
  • The Gross Margin of PSN (22.49%) is worse than 70.11% of its industry peers.
  • PSN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 6.53%
PM (TTM) 3.79%
GM 22.49%
OM growth 3Y17.37%
OM growth 5Y10.8%
PM growth 3Y18.02%
PM growth 5Y8.55%
GM growth 3Y-0.11%
GM growth 5Y0.1%
PSN Yearly Profit, Operating, Gross MarginsPSN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15 20

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. PSN Health Analysis

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.
  • The number of shares outstanding for PSN remains at a similar level compared to 1 year ago.
  • Compared to 5 years ago, PSN has more shares outstanding
  • The debt/assets ratio for PSN has been reduced compared to a year ago.
PSN Yearly Shares OutstandingPSN Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 1B 2B 3B 4B 5B

2.2 Solvency

  • An Altman-Z score of 2.82 indicates that PSN is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of PSN (2.82) is comparable to the rest of the industry.
  • PSN has a debt to FCF ratio of 3.04. This is a good value and a sign of high solvency as PSN would need 3.04 years to pay back of all of its debts.
  • PSN has a Debt to FCF ratio of 3.04. This is in the better half of the industry: PSN outperforms 60.92% of its industry peers.
  • A Debt/Equity ratio of 0.47 indicates that PSN is not too dependend on debt financing.
  • The Debt to Equity ratio of PSN (0.47) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 3.04
Altman-Z 2.82
ROIC/WACC0.99
WACC7.93%
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 2025 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

  • A Current Ratio of 1.75 indicates that PSN should not have too much problems paying its short term obligations.
  • PSN has a better Current ratio (1.75) than 62.07% of its industry peers.
  • A Quick Ratio of 1.75 indicates that PSN should not have too much problems paying its short term obligations.
  • With a decent Quick ratio value of 1.75, PSN is doing good in the industry, outperforming 62.07% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.75
Quick Ratio 1.75
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 2025 500M 1B 1.5B 2B 2.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. PSN Growth Analysis

3.1 Past

  • The earnings per share for PSN have decreased by -3.06% in the last year.
  • Measured over the past years, PSN shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.72% on average per year.
  • PSN shows a decrease in Revenue. In the last year, the revenue decreased by -5.72%.
  • Measured over the past years, PSN shows a quite strong growth in Revenue. The Revenue has been growing by 10.18% on average per year.
EPS 1Y (TTM)-3.06%
EPS 3Y20.76%
EPS 5Y26.72%
EPS Q2Q%-3.85%
Revenue 1Y (TTM)-5.72%
Revenue growth 3Y14.9%
Revenue growth 5Y10.18%
Sales Q2Q%-7.52%

3.2 Future

  • The Earnings Per Share is expected to grow by 10.72% 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 5.51% on average per year.
EPS Next Y5.14%
EPS Next 2Y9.05%
EPS Next 3Y10.72%
EPS Next 5YN/A
Revenue Next Year3.89%
Revenue Next 2Y5.74%
Revenue Next 3Y5.51%
Revenue Next 5YN/A

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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.
PSN Yearly Revenue VS EstimatesPSN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B
PSN Yearly EPS VS EstimatesPSN Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3 4

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4

4. PSN Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 16.72, the valuation of PSN can be described as correct.
  • Compared to the rest of the industry, the Price/Earnings ratio of PSN is on the same level as its industry peers.
  • PSN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.89.
  • Based on the Price/Forward Earnings ratio of 15.90, the valuation of PSN can be described as correct.
  • 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 22.19, PSN is valued a bit cheaper.
Industry RankSector Rank
PE 16.72
Fwd PE 15.9
PSN Price Earnings VS Forward Price EarningsPSN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as PSN.
  • Based on the Price/Free Cash Flow ratio, PSN is valued a bit cheaper than the industry average as 67.82% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 13.82
EV/EBITDA 12.03
PSN Per share dataPSN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

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.
PEG (NY)3.26
PEG (5Y)0.63
EPS Next 2Y9.05%
EPS Next 3Y10.72%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. PSN Dividend Analysis

5.1 Amount

  • PSN does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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Find the best dividend stocksShow peers with best dividend

PSN Fundamentals: All Metrics, Ratios and Statistics

PARSONS CORP

NYSE:PSN (3/30/2026, 3:14:06 PM)

53

+0.49 (+0.93%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)02-11
Earnings (Next)04-28
Inst Owners103.47%
Inst Owner Change-16.6%
Ins Owners1.31%
Ins Owner Change17.3%
Market Cap5.67B
Revenue(TTM)6.36B
Net Income(TTM)241.14M
Analysts82.22
Price Target83.55 (57.64%)
Short Float %4.72%
Short Ratio3.93
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)3.59%
Min EPS beat(2)-6.2%
Max EPS beat(2)13.38%
EPS beat(4)3
Avg EPS beat(4)3.96%
Min EPS beat(4)-6.2%
Max EPS beat(4)13.38%
EPS beat(8)6
Avg EPS beat(8)6.14%
EPS beat(12)9
Avg EPS beat(12)7.68%
EPS beat(16)10
Avg EPS beat(16)5.16%
Revenue beat(2)0
Avg Revenue beat(2)-4.17%
Min Revenue beat(2)-4.76%
Max Revenue beat(2)-3.58%
Revenue beat(4)0
Avg Revenue beat(4)-3.88%
Min Revenue beat(4)-5.34%
Max Revenue beat(4)-1.84%
Revenue beat(8)3
Avg Revenue beat(8)1.17%
Revenue beat(12)7
Avg Revenue beat(12)5.07%
Revenue beat(16)11
Avg Revenue beat(16)5.27%
PT rev (1m)-1.11%
PT rev (3m)-4.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.98%
EPS NY rev (1m)-2.99%
EPS NY rev (3m)-3.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.61%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-0.57%
Valuation
Industry RankSector Rank
PE 16.72
Fwd PE 15.9
P/S 0.89
P/FCF 13.82
P/OCF 11.86
P/B 2.15
P/tB 43.8
EV/EBITDA 12.03
EPS(TTM)3.17
EY5.98%
EPS(NY)3.33
Fwd EY6.29%
FCF(TTM)3.84
FCFY7.24%
OCF(TTM)4.47
OCFY8.43%
SpS59.47
BVpS24.69
TBVpS1.21
PEG (NY)3.26
PEG (5Y)0.63
Graham Number41.96
Profitability
Industry RankSector Rank
ROA 4.18%
ROE 9.13%
ROCE 9.8%
ROIC 7.83%
ROICexc 8.8%
ROICexgc 26.37%
OM 6.53%
PM (TTM) 3.79%
GM 22.49%
FCFM 6.45%
ROA(3y)3.94%
ROA(5y)3.16%
ROE(3y)8.63%
ROE(5y)6.8%
ROIC(3y)8.23%
ROIC(5y)6.36%
ROICexc(3y)9.16%
ROICexc(5y)7.07%
ROICexgc(3y)27.76%
ROICexgc(5y)21.45%
ROCE(3y)10.78%
ROCE(5y)8.25%
ROICexgc growth 3Y21.1%
ROICexgc growth 5Y11.74%
ROICexc growth 3Y22.51%
ROICexc growth 5Y10.75%
OM growth 3Y17.37%
OM growth 5Y10.8%
PM growth 3Y18.02%
PM growth 5Y8.55%
GM growth 3Y-0.11%
GM growth 5Y0.1%
F-Score6
Asset Turnover1.1
Health
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 3.04
Debt/EBITDA 2.34
Cap/Depr 58.35%
Cap/Sales 1.07%
Interest Coverage 9.48
Cash Conversion 89.93%
Profit Quality 170.2%
Current Ratio 1.75
Quick Ratio 1.75
Altman-Z 2.82
F-Score6
WACC7.93%
ROIC/WACC0.99
Cap/Depr(3y)47.2%
Cap/Depr(5y)36.33%
Cap/Sales(3y)0.85%
Cap/Sales(5y)0.77%
Profit Quality(3y)199.98%
Profit Quality(5y)220.35%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.06%
EPS 3Y20.76%
EPS 5Y26.72%
EPS Q2Q%-3.85%
EPS Next Y5.14%
EPS Next 2Y9.05%
EPS Next 3Y10.72%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.72%
Revenue growth 3Y14.9%
Revenue growth 5Y10.18%
Sales Q2Q%-7.52%
Revenue Next Year3.89%
Revenue Next 2Y5.74%
Revenue Next 3Y5.51%
Revenue Next 5YN/A
EBIT growth 1Y-7.91%
EBIT growth 3Y34.86%
EBIT growth 5Y22.08%
EBIT Next Year48.24%
EBIT Next 3Y6.65%
EBIT Next 5YN/A
FCF growth 1Y-13.49%
FCF growth 3Y25.65%
FCF growth 5Y9.97%
OCF growth 1Y-8.64%
OCF growth 3Y26.29%
OCF growth 5Y10.59%

PARSONS CORP / PSN Fundamental Analysis FAQ

What is the ChartMill fundamental rating of PARSONS CORP (PSN) stock?

ChartMill assigns a fundamental rating of 4 / 10 to PSN.


What is the valuation status of PARSONS CORP (PSN) stock?

ChartMill assigns a valuation rating of 4 / 10 to PARSONS CORP (PSN). This can be considered as Fairly Valued.


Can you provide the profitability details for PARSONS CORP?

PARSONS CORP (PSN) has a profitability rating of 5 / 10.


What is the expected EPS growth for PARSONS CORP (PSN) stock?

The Earnings per Share (EPS) of PARSONS CORP (PSN) is expected to grow by 5.14% in the next year.


Is the dividend of PARSONS CORP sustainable?

The dividend rating of PARSONS CORP (PSN) is 0 / 10 and the dividend payout ratio is 0%.