PARSONS CORP (PSN) Stock Fundamental Analysis
USA - NYSE:PSN - US70202L1026 - Common Stock
84.16 USD
-0.16 (-0.19%)
84.16 USD
0 (0%)
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.
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.
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 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
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 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.
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.56 | ||
| Altman-Z | 3.44 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.58 | ||
| Fwd PE | 23.49 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.27 | ||
| EV/EBITDA | 18.47 |
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%
5. Dividend
5.1 Amount
No dividends for PSN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
84.16
-0.16 (-0.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
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 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 | 25.58 | ||
| 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 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 | 3.44 |
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%.