PARSONS CORP (PSN)
US70202L1026 - Common Stock
Overall PSN gets a fundamental rating of 5 out of 10. We evaluated PSN against 80 industry peers in the Professional Services industry. PSN has only an average score on both its financial health and profitability. PSN is valued quite expensively, but it does show have an excellent growth rating. These ratings would make PSN suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year PSN was profitable.
PSN had a positive operating cash flow in the past year.
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's Return On Assets of 1.03% is in line compared to the rest of the industry. PSN outperforms 42.50% of its industry peers.
PSN has a Return On Equity (2.44%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 8.83%, PSN is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PSN is significantly below the industry average of 12.67%.
The last Return On Invested Capital (8.83%) for PSN is above the 3 year average (4.85%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.03% | ||
| ROE | 2.44% | ||
| ROIC | 8.83% |
ROA(3y)2.44%
ROA(5y)2.66%
ROE(3y)5.05%
ROE(5y)5.59%
ROIC(3y)4.85%
ROIC(5y)4.17%
1.3 Margins
Looking at the Profit Margin, with a value of 0.88%, PSN is in line with its industry, outperforming 41.25% of the companies in the same industry.
PSN's Profit Margin has declined in the last couple of years.
PSN has a Operating Margin (7.11%) which is in line with its industry peers.
In the last couple of years the Operating Margin of PSN has grown nicely.
With a Gross Margin value of 21.86%, PSN is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of PSN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.11% | ||
| PM (TTM) | 0.88% | ||
| GM | 21.86% |
OM growth 3Y16.46%
OM growth 5Y12.67%
PM growth 3Y5.61%
PM growth 5Y-14.13%
GM growth 3Y-0.33%
GM growth 5Y1.8%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PSN is still creating some value.
PSN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PSN has more shares outstanding
PSN has a better debt/assets ratio than last year.
2.2 Solvency
PSN has an Altman-Z score of 3.85. This indicates that PSN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.85, PSN is doing good in the industry, outperforming 71.25% of the companies in the same industry.
The Debt to FCF ratio of PSN is 2.79, which is a good value as it means it would take PSN, 2.79 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.79, PSN is in the better half of the industry, outperforming 67.50% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that PSN is somewhat dependend on debt financing.
PSN has a Debt to Equity ratio (0.56) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.79 | ||
| Altman-Z | 3.85 |
ROIC/WACC1.1
WACC8.02%
2.3 Liquidity
A Current Ratio of 1.80 indicates that PSN should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.80, PSN is doing good in the industry, outperforming 67.50% of the companies in the same industry.
PSN has a Quick Ratio of 1.80. 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 Quick ratio of 1.80 is fine compared to the rest of the industry. PSN outperforms 67.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.8 |
3. Growth
3.1 Past
PSN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.44%, which is quite impressive.
Measured over the past years, PSN shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.45% on average per year.
PSN shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.35%.
The Revenue has been growing by 9.20% on average over the past years. This is quite good.
EPS 1Y (TTM)42.44%
EPS 3Y36%
EPS 5Y-9.45%
EPS Q2Q%33.33%
Revenue 1Y (TTM)28.35%
Revenue growth 3Y11.57%
Revenue growth 5Y9.2%
Sales Q2Q%23.15%
3.2 Future
Based on estimates for the next years, PSN will show a very strong growth in Earnings Per Share. The EPS will grow by 20.81% on average per year.
Based on estimates for the next years, PSN will show a quite strong growth in Revenue. The Revenue will grow by 12.80% on average per year.
EPS Next Y32.42%
EPS Next 2Y23.02%
EPS Next 3Y20.81%
EPS Next 5YN/A
Revenue Next Year23.79%
Revenue Next 2Y15.56%
Revenue Next 3Y12.8%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 34.21, which means the current valuation is very expensive for PSN.
Compared to the rest of the industry, the Price/Earnings ratio of PSN indicates a slightly more expensive valuation: PSN is more expensive than 65.00% of the companies listed in the same industry.
PSN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 30.59.
PSN is valuated quite expensively with a Price/Forward Earnings ratio of 27.05.
Based on the Price/Forward Earnings ratio, PSN is valued a bit more expensive than 63.75% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, PSN is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.21 | ||
| Fwd PE | 27.05 |
4.2 Price Multiples
PSN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PSN is more expensive than 61.25% of the companies in the same industry.
63.75% of the companies in the same industry are more expensive than PSN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.55 | ||
| EV/EBITDA | 20.74 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PSN's earnings are expected to grow with 20.81% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.06
PEG (5Y)N/A
EPS Next 2Y23.02%
EPS Next 3Y20.81%
5. Dividend
5.1 Amount
PSN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PARSONS CORP
NYSE:PSN (9/20/2024, 8:15:58 PM)
After market: 99.89 0 (0%)99.89
-0.03 (-0.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.61B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
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EPS NQ rev (1m)
EPS NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.21 | ||
| Fwd PE | 27.05 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.03% | ||
| ROE | 2.44% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.11% | ||
| PM (TTM) | 0.88% | ||
| GM | 21.86% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)42.44%
EPS 3Y36%
EPS 5Y
EPS Q2Q%
EPS Next Y32.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)28.35%
Revenue growth 3Y11.57%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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OCF growth 3Y
OCF growth 5Y