NYSE:PSN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Slightly overvalued with limited growth.


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


Market Performance


7 Day Return

-0.3%

PSN

-1.5%

US Aerospace & Defense

0.5%

US Market


1 Year Return

n/a

PSN

7.2%

US Aerospace & Defense

6.8%

US Market

Return vs Industry: Insufficient data to determine how PSN performed against the US Aerospace & Defense industry.

Return vs Market: Insufficient data to determine how PSN performed against the US Market.


Shareholder returns

PSNIndustryMarket
7 Day-0.3%-1.5%0.5%
30 Day-7.4%-2.8%-0.8%
90 Day-13.0%2.1%-0.9%
1 Yearn/a9.3%7.2%9.2%6.8%
3 Yearn/a59.7%51.0%45.6%36.2%
5 Yearn/a92.1%74.0%63.2%45.4%

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 ($32.33) is trading below our estimate of fair value ($71.65)

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 (26.8x) compared to the Aerospace & Defense industry average (22.4x).

PE vs Market: PSN is poor value based on its PE Ratio (26.8x) compared to the US market (17.7x).


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 has negative assets, so we can't compare its PB Ratio to the US Aerospace & Defense industry average.


Next Steps

Future Growth

How is Parsons forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

19.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSN's forecast earnings growth (19.8% per year) is above the savings rate (2.7%).

Earnings vs Market: PSN's earnings (19.8% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: PSN's earnings are forecast to grow, but not significantly.

Revenue vs Market: PSN's revenue (4.3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: PSN's revenue (4.3% 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 (8.8%).


Next Steps

Past Performance

How has Parsons performed over the past 5 years?

-38.2%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if PSN's year-on-year earnings growth rate was positive 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 (-38.2%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (10.5%).


Return on Equity

High ROE: PSN's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: PSN's Return on Assets is below or equal to the Aerospace & Defense industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate PSN's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Parsons's financial position?


Financial Position Analysis

Short Term Liabilities: PSN has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: PSN has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: PSN has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: PSN's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: PSN's debt is well covered by operating cash flow (98.1%).

Interest Coverage: PSN's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet

Inventory Level: PSN has a low level of unsold assets or inventory.

Debt Coverage by Assets: PSN has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate PSN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PSN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

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

What is the CEO of Parsons's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Chuck Harrington (60yo)

11.4yrs

Tenure

US$7,836,380

Compensation

Mr. Charles L. Harrington, also known as Chuck, has been Chief Executive Officer and President at Parsons Corporation since May 2008 and 2009 respectively. Mr. Harrington was the Founder of Parsons Enviorn ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Chuck's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Chuck's compensation with company performance.


Management Age and Tenure

2.8yrs

Average Tenure

58yo

Average Age

Experienced Management: PSN's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

8.3yrs

Average Tenure

64yo

Average Age

Experienced Board: PSN's board of directors are considered experienced (8.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$734,97514 May 19
George Ball
EntityIndividual
Role
Chief Financial Officer
CFO & Executive VP
Shares25,000
Max PriceUS$29.40

Ownership Breakdown


Management Team

  • Chuck Harrington (60yo)

    Chairman

    • Tenure: 11.4yrs
    • Compensation: US$7.84m
  • Virginia Grebbien

    Chief Marketing Officer

    • Tenure: 0yrs
  • Jim Shappell

    Vice Chairman

    • Tenure: 3.8yrs
  • George Ball (60yo)

    CFO & Executive VP

    • Tenure: 11.4yrs
    • Compensation: US$2.18m
  • Carey Smith (55yo)

    Chief Operating Officer

    • Tenure: 0.9yrs
    • Compensation: US$1.92m
  • Scott Carl

    Chief Information Officer

    • Tenure: 0yrs
  • Debra Fiori

    Chief Human Resources Officer

    • Tenure: 0yrs
  • Adam Taylor (40yo)

    Chief Transformation & Administrative Officer

    • Tenure: 1.8yrs
  • Michael Kolloway (58yo)

    Chief Legal Officer & Secretary

    • Tenure: 0.8yrs
    • Compensation: US$1.25m
  • David Spille

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Mark Holdsworth (54yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$233.13k
  • Kenneth Dahlberg (74yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$221.88k
  • Steve Leer (66yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$221.88k
  • Harry McMahon (65yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$149.00k
  • Chuck Harrington (60yo)

    Chairman

    • Tenure: 11.4yrs
    • Compensation: US$7.84m
  • Chris Mitchell (64yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$243.88k
  • Tamara Adler Lundgren (61yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$238.63k
  • Jim McGovern (72yo)

    Independent Director

    • Tenure: 14.6yrs
    • Compensation: US$270.40k
  • Zan Vautrinot (59yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$221.88k

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$3.215b
  • Shares outstanding: 99.43m
  • Website: https://www.parsons.com

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 Analysis2019/10/21 00:49
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.