Parsons Corporation provides technology based solutions in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. More Details
No risks detected for PSN from our risk checks.
Excellent balance sheet and fair value.
Share Price & News
How has Parsons's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PSN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: PSN's weekly volatility (4%) has been stable over the past year.
7 Day Return
US Aerospace & Defense
1 Year Return
US Aerospace & Defense
Return vs Industry: PSN underperformed the US Aerospace & Defense industry which returned 31.3% over the past year.
Return vs Market: PSN underperformed the US Market which returned 49.4% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Parsons's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 hours ago | Simply Wall StParsons' (NYSE:PSN) Conservative Accounting Might Explain Soft Earnings
1 week ago | Simply Wall StIs Parsons Corporation's (NYSE:PSN) Recent Stock Performance Influenced By Its Fundamentals In Any Way?
1 month ago | Simply Wall StParsons (NYSE:PSN) Might Be Having Difficulty Using Its Capital Effectively
Is Parsons undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PSN ($41.07) is trading below our estimate of fair value ($60.58)
Significantly Below Fair Value: PSN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PSN is poor value based on its PE Ratio (44x) compared to the US Aerospace & Defense industry average (29.7x).
PE vs Market: PSN is poor value based on its PE Ratio (44x) compared to the US market (19.5x).
Price to Earnings Growth Ratio
PEG Ratio: PSN is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: PSN is good value based on its PB Ratio (2.3x) compared to the US Aerospace & Defense industry average (2.5x).
How is Parsons forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PSN's forecast earnings growth (26.7% per year) is above the savings rate (2%).
Earnings vs Market: PSN's earnings (26.7% per year) are forecast to grow faster than the US market (14.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: PSN's revenue (7.8% per year) is forecast to grow slower than the US market (9% per year).
High Growth Revenue: PSN's revenue (7.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PSN's Return on Equity is forecast to be low in 3 years time (9%).
How has Parsons performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PSN has high quality earnings.
Growing Profit Margin: PSN's current net profit margins (2.5%) are lower than last year (3.1%).
Past Earnings Growth Analysis
Earnings Trend: PSN's earnings have grown by 9.3% per year over the past 5 years.
Accelerating Growth: PSN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: PSN had negative earnings growth (-23.6%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (-6.2%).
Return on Equity
High ROE: PSN's Return on Equity (6.4%) is considered low.
How is Parsons's financial position?
Financial Position Analysis
Short Term Liabilities: PSN's short term assets ($1.8B) exceed its short term liabilities ($1.1B).
Long Term Liabilities: PSN's short term assets ($1.8B) exceed its long term liabilities ($913.9M).
Debt to Equity History and Analysis
Debt Level: PSN's debt to equity ratio (34.8%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if PSN's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: PSN's debt is well covered by operating cash flow (53.4%).
Interest Coverage: PSN's interest payments on its debt are well covered by EBIT (6.9x coverage).
What is Parsons's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate PSN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate PSN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if PSN's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if PSN's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of PSN's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Chuck Harrington (61 yo)
Mr. Charles L. Harrington, also known as Chuck, has been Chief Executive Officer at Parsons Corporation since May 2008, and served as its President 2009. Mr. Harrington was the Founder of Parsons Environme...
CEO Compensation Analysis
Compensation vs Market: Chuck's total compensation ($USD8.23M) is above average for companies of similar size in the US market ($USD5.40M).
Compensation vs Earnings: Chuck's compensation has been consistent with company performance over the past year.
Experienced Management: PSN's management team is seasoned and experienced (5.8 years average tenure).
Experienced Board: PSN's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Parsons Corporation's company bio, employee growth, exchange listings and data sources
- Name: Parsons Corporation
- Ticker: PSN
- Exchange: NYSE
- Founded: 1944
- Industry: Aerospace and Defense
- Sector: Capital Goods
- Market Cap: US$4.295b
- Shares outstanding: 102.41m
- Website: https://www.parsons.com
Number of Employees
- Parsons Corporation
- 5875 Trinity Parkway
- Suite 300
- United States
Parsons Corporation provides technology based solutions in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. It operates through two seg...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/13 04:03|
|End of Day Share Price||2021/05/12 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.