PSN Stock Overview
Parsons Corporation provides integrated solutions and services in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally.
PSN passed our risk checks.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$41.55|
|52 Week High||US$43.84|
|52 Week Low||US$29.25|
|1 Month Change||2.49%|
|3 Month Change||2.16%|
|1 Year Change||21.35%|
|3 Year Change||28.40%|
|5 Year Change||n/a|
|Change since IPO||38.18%|
Recent News & Updates
Parsons Corporation (NYSE:PSN) Shares Could Be 50% Below Their Intrinsic Value Estimate
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Parsons Corporation...
Parsons secures a $104M contract from the Missile Defense Agency
Parsons (NYSE:PSN) has been selected by The Missile Defense Agency (MDA) to continue engineering advisory and assistance support for planning, design, and construction through a $104M ceiling-value cost plus fixed fee Technical, Engineering, Advisory, and Management Support (TEAMS)- next facilities lifecycle management contract. The contract contains a three-year base period with two option period years, and one six-month option. Under this contract, the company will provide advisory and assistance support to MDA’s mission of building sustainable infrastructure systems, updating aging or damaged military facilities, and managing leases under the MDA Real Property Program at U.S. military installations in Virginia, Alaska, Alabama, and California.
Parsons secures U.S. army chemical and biological defense IDIQ contract
U.S. Army Combat Capabilities Development Command, Chemical Biological Center selects Parsons (NYSE:PSN) for an award on its scientific, technical engineering, and program support services indefinite delivery, indefinite quantity (IDIQ) contract. The 10-year IDIQ, a multiple award contract with a program ceiling value of $869M, will support the U.S. Army by providing acquisition life-cycle chemical and biological defense research, development, test, and evaluation support. “We stand ready to support DEVCOM CBC as they deliver on their vision of providing innovative chemical and biological defense capabilities to advance national security and global combat operations. This is an exciting win as we continue growing our biosurveillance and environmental sector capabilities. We look forward to bringing our proven talent, expertise, and mission-critical solutions to this important mission.” said Jon Moretta, president of Parsons’ engineered systems business unit.
The Returns On Capital At Parsons (NYSE:PSN) Don't Inspire Confidence
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...
Is It Time To Consider Buying Parsons Corporation (NYSE:PSN)?
While Parsons Corporation ( NYSE:PSN ) might not be the most widely known stock at the moment, it saw a significant...
|PSN||US Aerospace & Defense||US Market|
Return vs Industry: PSN exceeded the US Aerospace & Defense industry which returned 0.8% over the past year.
Return vs Market: PSN exceeded the US Market which returned -20% over the past year.
|PSN Average Weekly Movement||3.2%|
|Aerospace & Defense Industry Average Movement||6.1%|
|Market Average Movement||6.8%|
|10% most volatile stocks in US Market||15.5%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: PSN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: PSN's weekly volatility (3%) has been stable over the past year.
About the Company
Parsons Corporation provides integrated solutions and services in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. It operates through two segments, Federal Solutions and Critical Infrastructure. The company offers cyber security and intelligence services, as well as offensive and defensive cybersecurity platforms, tools, and operations to the U.S.
Parsons Fundamentals Summary
|PSN fundamental statistics|
Is PSN overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|PSN income statement (TTM)|
|Cost of Revenue||US$2.97b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||0.84|
|Net Profit Margin||2.26%|
How did PSN perform over the long term?See historical performance and comparison
Is PSN undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 2/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for PSN?
Other financial metrics that can be useful for relative valuation.
|What is PSN's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does PSN's PE Ratio compare to its peers?
|PSN PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
BWXT BWX Technologies
AJRD Aerojet Rocketdyne Holdings
Price-To-Earnings vs Peers: PSN is expensive based on its Price-To-Earnings Ratio (49.3x) compared to the peer average (24.2x).
Price to Earnings Ratio vs Industry
How does PSN's PE Ratio compare vs other companies in the US Aerospace & Defense Industry?
Price-To-Earnings vs Industry: PSN is expensive based on its Price-To-Earnings Ratio (49.3x) compared to the US Aerospace & Defense industry average (24.4x)
Price to Earnings Ratio vs Fair Ratio
What is PSN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||49.3x|
|Fair PE Ratio||27.6x|
Price-To-Earnings vs Fair Ratio: PSN is expensive based on its Price-To-Earnings Ratio (49.3x) compared to the estimated Fair Price-To-Earnings Ratio (27.6x).
Share Price vs Fair Value
What is the Fair Price of PSN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: PSN ($41.55) is trading below our estimate of fair value ($81.19)
Significantly Below Fair Value: PSN is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
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How is Parsons forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Future Growth Score3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PSN's forecast earnings growth (28.7% per year) is above the savings rate (1.9%).
Earnings vs Market: PSN's earnings (28.7% per year) are forecast to grow faster than the US market (14.7% per year).
High Growth Earnings: PSN's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: PSN's revenue (6.4% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: PSN's revenue (6.4% 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 (7.7%).
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How has Parsons performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PSN has high quality earnings.
Growing Profit Margin: PSN's current net profit margins (2.3%) are higher than last year (2.1%).
Past Earnings Growth Analysis
Earnings Trend: PSN's earnings have declined by 20.7% per year over the past 5 years.
Accelerating Growth: PSN's earnings growth over the past year (11.9%) exceeds its 5-year average (-20.7% per year).
Earnings vs Industry: PSN earnings growth over the past year (11.9%) underperformed the Aerospace & Defense industry 11.9%.
Return on Equity
High ROE: PSN's Return on Equity (5.6%) is considered low.
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How is Parsons's financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: PSN's short term assets ($1.6B) exceed its short term liabilities ($1.1B).
Long Term Liabilities: PSN's short term assets ($1.6B) exceed its long term liabilities ($1.0B).
Debt to Equity History and Analysis
Debt Level: PSN's net debt to equity ratio (33.9%) 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 (24.3%).
Interest Coverage: PSN's interest payments on its debt are well covered by EBIT (8.1x coverage).
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What is Parsons's current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Dividend Yield vs Market
|Parsons Dividend Yield vs Market|
|Market Bottom 25% (US)||1.6%|
|Market Top 25% (US)||4.6%|
|Industry Average (Aerospace & Defense)||2.1%|
|Analyst forecast in 3 Years (Parsons)||0%|
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.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as PSN has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Carey Smith (58 yo)
Ms. Carey A. Smith has been the Chairwoman of the Board of Parsons Corporation since April 14, 2022. She has been a Director of Parsons Corporation since December 2020 and its Chief executive Officer since...
CEO Compensation Analysis
|Carey Smith's Compensation vs Parsons Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$5m||US$799k|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$5m||US$694k|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$2m||US$614k|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||US$2m||US$458k|
Compensation vs Market: Carey's total compensation ($USD5.35M) is about average for companies of similar size in the US market ($USD6.84M).
Compensation vs Earnings: Carey's compensation has been consistent with company performance over the past year.
Experienced Management: PSN's management team is considered experienced (2.3 years average tenure).
Experienced Board: PSN's board of directors are not considered experienced ( 2.5 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: PSN insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
|05 Aug 22||BuyUS$1,452,500||George Ball||Individual||35,000||US$41.50|
|25 Feb 22||BuyUS$1,336,000||George Ball||Individual||40,000||US$33.40|
|16 Dec 21||BuyUS$190,424||Michael Kolloway||Individual||6,000||US$31.74|
|16 Dec 21||BuyUS$937,500||George Ball||Individual||30,000||US$31.25|
|16 Dec 21||BuyUS$309,297||Carey Smith||Individual||10,000||US$30.93|
|Owner Type||Number of Shares||Ownership Percentage|
|Employee Share Scheme||69,599,532||63.4%|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Parsons Corporation's employee growth, exchange listings and data sources
- Name: Parsons Corporation
- Ticker: PSN
- Exchange: NYSE
- Founded: 1944
- Industry: Aerospace and Defense
- Sector: Capital Goods
- Implied Market Cap: US$4.303b
- Shares outstanding: 103.56m
- Website: https://www.parsons.com
Number of Employees
- Parsons Corporation
- 5875 Trinity Parkway
- Suite 300
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|PSN||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||May 2019|
|59P||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||May 2019|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/10/04 00:00|
|End of Day Share Price||2022/10/04 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.