We assign a fundamental rating of 5 out of 10 to PSN. PSN was compared to 87 industry peers in the Professional Services industry. PSN has only an average score on both its financial health and profitability. PSN has a decent growth rate and is not valued too expensively.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
PSN had positive earnings in each of the past 5 years.
PSN had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

PSN has a Return On Assets of 6.74%. This is in the better half of the industry: PSN outperforms 66.67% of its industry peers.
Looking at the Return On Equity, with a value of 15.12%, PSN is in the better half of the industry, outperforming 67.82% of the companies in the same industry.
The Return On Invested Capital of PSN (7.82%) is comparable to the rest of the industry.
PSN had an Average Return On Invested Capital over the past 3 years of 6.99%. This is below the industry average of 11.83%.
The 3 year average ROIC (6.99%) for PSN is below the current ROIC(7.82%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	6.74%
ROE	15.12%
ROIC	7.82%

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

PSN's Profit Margin of 5.96% is fine compared to the rest of the industry. PSN outperforms 66.67% of its industry peers.
PSN's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 6.33%, PSN perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
PSN's Operating Margin has improved in the last couple of years.
PSN has a worse Gross Margin (22.05%) than 66.67% 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	6.33%
PM (TTM)	5.96%
GM	22.05%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PSN is destroying value.
Compared to 1 year ago, PSN has more shares outstanding
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 3.16 indicates that PSN is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.16, PSN is doing good in the industry, outperforming 60.92% of the companies in the same industry.
The Debt to FCF ratio of PSN is 3.26, which is a good value as it means it would take PSN, 3.26 years of fcf income to pay off all of its debts.
PSN has a Debt to FCF ratio of 3.26. This is in the better half of the industry: PSN outperforms 68.97% of its industry peers.
PSN has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of PSN (0.49) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.49
Debt/FCF	3.26
Altman-Z	3.16

ROIC/WACC0.96

WACC8.15%

2.3 Liquidity

PSN has a Current Ratio of 1.67. 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 1.67 is in line compared to the rest of the industry. PSN outperforms 59.77% of its industry peers.
A Quick Ratio of 1.67 indicates that PSN should not have too much problems paying its short term obligations.
PSN's Quick ratio of 1.67 is in line compared to the rest of the industry. PSN outperforms 59.77% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.67
Quick Ratio	1.67

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 0.63% 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.
PSN shows a decrease in Revenue. In the last year, the revenue decreased by -0.24%.
The Revenue has been growing by 11.29% on average over the past years. This is quite good.

EPS 1Y (TTM)0.63%

EPS 3Y32.68%

EPS 5Y13.84%

EPS Q2Q%-9.47%

Revenue 1Y (TTM)-0.24%

Revenue growth 3Y22.63%

Revenue growth 5Y11.29%

Sales Q2Q%-10.41%

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 5.75% on average per year.
PSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.10% yearly.

EPS Next Y-0.71%

EPS Next 2Y2.21%

EPS Next 3Y5.75%

EPS Next 5YN/A

Revenue Next Year-5.07%

Revenue Next 2Y-0.82%

Revenue Next 3Y2.1%

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 21.89, the valuation of PSN can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as PSN.
Compared to an average S&P500 Price/Earnings ratio of 28.39, PSN is valued a bit cheaper.
A Price/Forward Earnings ratio of 20.51 indicates a rather expensive valuation of PSN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PSN is on the same level as its industry peers.
PSN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.72.

		Industry Rank	Sector Rank
PE	21.89
Fwd PE	20.51

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 68.97% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	19.49
EV/EBITDA	16.02

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)1.58

EPS Next 2Y2.21%

EPS Next 3Y5.75%

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5. Dividend

5.1 Amount

No dividends for PSN!.

		Industry Rank	Sector Rank
Dividend Yield	0%

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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.

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 6 / 10.

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

The Earnings per Share (EPS) of PARSONS CORP (PSN) is expected to decline by -0.71% 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%.