company background image
PSN

Parsons NYSE:PSN Stock Report

Last Price

US$41.55

Market Cap

US$4.3b

7D

6.4%

1Y

21.3%

Updated

04 Oct, 2022

Data

Company Financials +
PSN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance3/6
Financial Health5/6
Dividends0/6

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.

Rewards

Trading at 48.8% below our estimate of its fair value

Earnings are forecast to grow 28.7% per year

Risk Analysis

PSN passed our risk checks.

Parsons Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Parsons
Historical stock prices
Current Share PriceUS$41.55
52 Week HighUS$43.84
52 Week LowUS$29.25
Beta0.83
1 Month Change2.49%
3 Month Change2.16%
1 Year Change21.35%
3 Year Change28.40%
5 Year Changen/a
Change since IPO38.18%

Recent News & Updates

Oct 04
Parsons Corporation (NYSE:PSN) Shares Could Be 50% Below Their Intrinsic Value Estimate

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...

Sep 28

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.

Sep 20

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.

Sep 01
The Returns On Capital At Parsons (NYSE:PSN) Don't Inspire Confidence

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...

Aug 19
Is It Time To Consider Buying Parsons Corporation (NYSE:PSN)?

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...

Shareholder Returns

PSNUS Aerospace & DefenseUS Market
7D6.4%1.0%1.0%
1Y21.3%0.8%-20.0%

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.

Price Volatility

Is PSN's price volatile compared to industry and market?
PSN volatility
PSN Average Weekly Movement3.2%
Aerospace & Defense Industry Average Movement6.1%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

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

FoundedEmployeesCEOWebsite
194415,500Carey Smithhttps://www.parsons.com

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

How do Parsons's earnings and revenue compare to its market cap?
PSN fundamental statistics
Market CapUS$4.30b
Earnings (TTM)US$87.29m
Revenue (TTM)US$3.86b

49.3x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PSN income statement (TTM)
RevenueUS$3.86b
Cost of RevenueUS$2.97b
Gross ProfitUS$890.30m
Other ExpensesUS$803.00m
EarningsUS$87.29m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.84
Gross Margin23.04%
Net Profit Margin2.26%
Debt/Equity Ratio40.4%

How did PSN perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is PSN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

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

  • Analyst Forecast

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.

PSN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.3x
Enterprise Value/EBITDA19.4x
PEG Ratio1.7x

Price to Earnings Ratio vs Peers

How does PSN's PE Ratio compare to its peers?

PSN PE Ratio vs Peers
The above table shows the PE ratio for PSN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average24.2x
BWXT BWX Technologies
15.7x5.6%US$4.9b
CW Curtiss-Wright
22.4x3.5%US$5.8b
WWD Woodward
31.4x27.0%US$5.3b
AJRD Aerojet Rocketdyne Holdings
27.1x20.2%US$3.4b
PSN Parsons
49.3x28.7%US$4.3b

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.

PSN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio49.3x
Fair PE Ratio27.6x

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.


Discover undervalued companies

Future Growth

How is Parsons forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


28.7%

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%).


Discover growth companies

Past Performance

How has Parsons performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-20.7%

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.


Discover strong past performing companies

Financial Health

How is Parsons's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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).


Balance Sheet


Discover healthy companies

Dividend

What is Parsons's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Parsons Dividend Yield vs Market
How does Parsons dividend yield compare to the market?
SegmentDividend Yield
Company (Parsons)n/a
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.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Carey Smith (58 yo)

1.83yrs

Tenure

US$5,348,118

Compensation

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
How has Carey Smith's remuneration changed compared to Parsons's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$87m

Mar 31 2022n/an/a

US$76m

Dec 31 2021US$5mUS$799k

US$64m

Sep 30 2021n/an/a

US$57m

Jun 30 2021n/an/a

US$78m

Mar 31 2021n/an/a

US$95m

Dec 31 2020US$5mUS$694k

US$99m

Sep 30 2020n/an/a

US$91m

Jun 30 2020n/an/a

US$107m

Mar 31 2020n/an/a

US$124m

Dec 31 2019US$2mUS$614k

US$121m

Sep 30 2019n/an/a

US$114m

Jun 30 2019n/an/a

US$99m

Mar 31 2019n/an/a

US$207m

Dec 31 2018US$2mUS$458k

US$222m

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.


Leadership Team

Experienced Management: PSN's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: PSN's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

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

NYSE:PSN Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
05 Aug 22BuyUS$1,452,500George BallIndividual35,000US$41.50
25 Feb 22BuyUS$1,336,000George BallIndividual40,000US$33.40
16 Dec 21BuyUS$190,424Michael KollowayIndividual6,000US$31.74
16 Dec 21BuyUS$937,500George BallIndividual30,000US$31.25
16 Dec 21BuyUS$309,297Carey SmithIndividual10,000US$30.93

Ownership Breakdown

What is the ownership structure of PSN?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders781,9250.7%
Institutions39,444,52835.9%
Employee Share Scheme69,599,53263.4%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 97.36% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
67.21%
Parsons Corporation., Employee Stock Ownership Plan
69,599,532$2.9b0%no data
3.8%
T. Rowe Price Group, Inc.
3,931,806$163.4m56.53%0.02%
3.2%
EARNEST Partners, LLC
3,311,070$137.6m-3.04%0.88%
3.11%
The Vanguard Group, Inc.
3,224,960$134.0m3.07%no data
3.03%
Mackenzie Financial Corporation
3,140,539$130.5m-0.43%0.16%
2.66%
BlackRock, Inc.
2,757,608$114.6m34.42%no data
1.81%
State Street Global Advisors, Inc.
1,874,060$77.9m1.86%no data
1.32%
Allspring Global Investments, LLC
1,370,899$57.0m-7.37%0.08%
1.25%
Invesco Ltd.
1,294,898$53.8m13.55%0.02%
0.94%
Dimensional Fund Advisors LP
976,361$40.6m40.85%0.01%
0.92%
GO ETF Solutions LLP
952,748$39.6m0%0.55%
0.86%
Morgan Stanley, Investment Banking and Brokerage Investments
888,571$36.9m-6.72%0.01%
0.83%
Legal & General Investment Management Limited
856,878$35.6m-20.56%0.01%
0.82%
Lord, Abbett & Co. LLC
853,714$35.5m61.01%0.12%
0.79%
Managed Account Advisors LLC
821,952$34.2m-23.79%0.01%
0.61%
Credit Suisse, Investment Banking and Securities Investments
629,368$26.2m-10.16%0.05%
0.57%
New York State Common Retirement Fund
592,538$24.6m-0.37%0.03%
0.51%
Geode Capital Management, LLC
524,392$21.8m12.97%no data
0.5%
Barclays PLC Private Banking & Investment Banking Investment
515,951$21.4m1.22%0.03%
0.48%
ETF Managers Group LLC
498,280$20.7m-5.11%0.55%
0.48%
Bank of America Corporation, Asset Management Arm
495,908$20.6m6.38%0.01%
0.43%
Goldman Sachs Group, Investment Banking and Securities Investments
448,917$18.7m199.93%0.01%
0.43%
abrdn plc
442,384$18.4m0%0.02%
0.4%
Columbia Management Investment Advisers, LLC
413,445$17.2m15.5%no data
0.4%
Citadel Advisors LLC
412,005$17.1m110.38%0.03%

Company Information

Parsons Corporation's employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Parsons Corporation
  • 5875 Trinity Parkway
  • Suite 300
  • Centreville
  • Virginia
  • 21120
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PSNNYSE (New York Stock Exchange)YesCommon StockUSUSDMay 2019
59PDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2019

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/04 00:00
End of Day Share Price2022/10/04 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.