NYSE:PSN

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Executive Summary

Parsons Corporation provides technology based solutions in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. More Details


Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.1%

PSN

-1.1%

US Aerospace & Defense

-0.4%

US Market


1 Year Return

-4.8%

PSN

-28.1%

US Aerospace & Defense

18.3%

US Market

Return vs Industry: PSN exceeded the US Aerospace & Defense industry which returned -28.1% over the past year.

Return vs Market: PSN underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

PSNIndustryMarket
7 Day-3.1%-1.1%-0.4%
30 Day0.06%2.4%6.6%
90 Day-4.5%0.04%8.6%
1 Year-4.8%-4.8%-13.0%-28.1%21.0%18.3%
3 Yearn/a4.2%-16.6%42.1%32.7%
5 Yearn/a53.7%15.1%85.6%64.7%

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

Valuation

Is Parsons undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PSN ($32.34) is trading below our estimate of fair value ($74.12)

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 (30.3x) compared to the US Aerospace & Defense industry average (21.4x).

PE vs Market: PSN is poor value based on its PE Ratio (30.3x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: PSN is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: PSN is good value based on its PB Ratio (2x) compared to the US Aerospace & Defense industry average (2.3x).


Next Steps

Future Growth

How is Parsons forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSN's forecast earnings growth (22% per year) is above the savings rate (2.2%).

Earnings vs Market: PSN's earnings (22% per year) are forecast to grow slower than the US market (22.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PSN's revenue (4.1% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: PSN's revenue (4.1% 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 (9.6%).


Next Steps

Past Performance

How has Parsons performed over the past 5 years?

22.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSN has high quality earnings.

Growing Profit Margin: PSN's current net profit margins (2.7%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: PSN's earnings have grown significantly by 22.7% per year over the past 5 years.

Accelerating Growth: PSN's earnings growth over the past year (8.1%) is below its 5-year average (22.7% per year).

Earnings vs Industry: PSN earnings growth over the past year (8.1%) exceeded the Aerospace & Defense industry 1.6%.


Return on Equity

High ROE: PSN's Return on Equity (7.6%) is considered low.


Next Steps

Financial Health

How is Parsons's financial position?


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 ($614.0M).


Debt to Equity History and Analysis

Debt Level: PSN's debt to equity ratio (14.6%) 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 (95.1%).

Interest Coverage: PSN's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet


Next Steps

Dividend

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.


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Chuck Harrington (61 yo)

12.42yrs

Tenure

US$7,742,034

Compensation

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 Environmen ...


CEO Compensation Analysis

Compensation vs Market: Chuck's total compensation ($USD7.74M) is above average for companies of similar size in the US market ($USD5.61M).

Compensation vs Earnings: Chuck's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Charles Harrington
Chairman & CEO12.42yrsUS$7.74m0.13%
$ 4.2m
Carey Smith
President & COO0.92yrUS$2.13m0.012%
$ 401.6k
George Ball
CFO & Executive VP12.42yrsUS$2.20m0.12%
$ 3.8m
Michael Kolloway
Chief Legal Officer & Secretary3yrsUS$1.17m0.015%
$ 495.8k
Scott Carl
Chief Information Officerno datano datano data
David Spille
Vice President of Investor Relationsno datano datano data
Debra Fiori
Chief People Officerno datano data0.0014%
$ 47.2k
James Shappell
Vice Chairman4.75yrsno datano data
Virginia Grebbien
Chief Corporate Affairs Officerno datano datano data
Rick Henderson
Senior Vice President and Middle East Africa Finance Director5.17yrsno datano data
Jeffrey Squires
Senior Vice President and Director of Strategic Planning & Regional Management9.5yrsno datano data
William Price
Managing Director of the Northern Mediterranean Region Operations9.83yrsno datano data

7.3yrs

Average Tenure

60yo

Average Age

Experienced Management: PSN's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Charles Harrington
Chairman & CEO12.42yrsUS$7.74m0.13%
$ 4.2m
Mark Holdsworth
Independent Director14.75yrsUS$249.63kno data
Steven Leer
Independent Director7.75yrsUS$246.50kno data
David Wajsgras
Director0.33yrno data0.0016%
$ 53.4k
Harry McMahon
Independent Director2.33yrsUS$257.13k0.017%
$ 565.8k
M. Mitchell
Independent Director8.75yrsUS$267.63kno data
James McGovern
Independent Director15.58yrsUS$306.19kno data
Letitia Long
Independent Director0.50yrno datano data
Suzanne Vautrinot
Director0.75yrUS$244.50kno data
Lysa Scully
Member of Critical Infrastructure Strategic Advisory Board0.58yrno datano data
Darren McDew
Director0.33yrno datano data

2.3yrs

Average Tenure

61yo

Average Age

Experienced Board: PSN's board of directors are not considered experienced ( 2.3 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

Ownership Breakdown

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


Top Shareholders

Company Information

Parsons Corporation's company bio, 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
  • Market Cap: US$3.257b
  • Shares outstanding: 100.72m
  • Website: https://www.parsons.com

Number of Employees


Location

  • Parsons Corporation
  • 5875 Trinity Parkway
  • Suite 300
  • Centreville
  • Virginia
  • 20120
  • United States

Listings

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

Biography

Parsons Corporation provides technology based solutions in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. It operates in two segments ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 23:39
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.