NYSE:ASGN

Stock Analysis Report

Executive Summary

ASGN Incorporated provides information technology (IT) and professional staffing services in the technology, digital, creative, engineering, and life sciences fields across commercial and government sectors in the United States and internationally.


Snowflake Analysis

Undervalued with mediocre balance sheet.


Similar Companies

Share Price & News

How has ASGN's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ASGN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-12.1%

ASGN

-9.3%

US Professional Services

-10.6%

US Market


1 Year Return

-17.6%

ASGN

13.0%

US Professional Services

5.2%

US Market

Return vs Industry: ASGN underperformed the US Professional Services industry which returned 13% over the past year.

Return vs Market: ASGN underperformed the US Market which returned 5.2% over the past year.


Shareholder returns

ASGNIndustryMarket
7 Day-12.1%-9.3%-10.6%
30 Day-22.9%-6.9%-8.5%
90 Day-20.2%0.2%-4.6%
1 Year-17.6%-17.6%13.9%13.0%7.4%5.2%
3 Year13.8%13.8%43.6%39.8%31.7%23.2%
5 Year42.8%42.8%66.2%58.6%56.4%39.3%

Price Volatility Vs. Market

How volatile is ASGN's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

47.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ASGN ($53.47) is trading below our estimate of fair value ($102.28)

Significantly Below Fair Value: ASGN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ASGN is good value based on its PE Ratio (16.2x) compared to the Professional Services industry average (17.2x).

PE vs Market: ASGN is good value based on its PE Ratio (16.2x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: ASGN is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: ASGN is good value based on its PB Ratio (2.1x) compared to the US Professional Services industry average (2.5x).


Next Steps

Future Growth

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

14.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ASGN's forecast earnings growth (14.8% per year) is above the savings rate (1.7%).

Earnings vs Market: ASGN's earnings (14.8% per year) are forecast to grow faster than the US market (13% per year).

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

Revenue vs Market: ASGN's revenue (6% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: ASGN's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ASGN's Return on Equity is forecast to be low in 3 years time (13.8%).


Next Steps

Past Performance

How has ASGN performed over the past 5 years?

22.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ASGN has high quality earnings.

Growing Profit Margin: ASGN's current net profit margins (4.5%) are lower than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: ASGN's earnings have grown significantly by 22.1% per year over the past 5 years.

Accelerating Growth: ASGN's earnings growth over the past year (10.6%) is below its 5-year average (22.1% per year).

Earnings vs Industry: ASGN earnings growth over the past year (10.6%) underperformed the Professional Services industry 20.1%.


Return on Equity

High ROE: ASGN's Return on Equity (12.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ASGN's financial position?


Financial Position Analysis

Short Term Liabilities: ASGN's short term assets ($791.5M) exceed its short term liabilities ($340.9M).

Long Term Liabilities: ASGN's short term assets ($791.5M) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: ASGN's debt to equity ratio (68.4%) is considered high.

Reducing Debt: ASGN's debt to equity ratio has increased from 64.7% to 68.4% over the past 5 years.

Debt Coverage: ASGN's debt is well covered by operating cash flow (31.4%).

Interest Coverage: ASGN's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet

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

Debt Coverage by Assets: ASGN's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.6%markettop25%4.1%industryaverage1.1%forecastin3Years0%

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ASGN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ASGN'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 ASGN'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?

4.6yrs

Average management tenure


CEO

Ted Hanson (51yo)

0.8yrs

Tenure

US$3,190,615

Compensation

Mr. Theodore S. Hanson, also known as Ted, has been the President of ASGN Incorporated (also known as On Assignment, Inc.) since December 2016 and as its Chief Executive Officer since April 30, 2019. Mr. H ...


CEO Compensation Analysis

Compensation vs Market: Ted's total compensation ($USD3.19M) is below average for companies of similar size in the US market ($USD5.04M).

Compensation vs Earnings: Ted's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Theodore Hanson
CEO, President & DIrector0.8yrsUS$3.19m0.60% $18.2m
Edward Pierce
Executive VP & CFO7.4yrsUS$2.33m0.21% $6.4m
Randolph Blazer
President of Apex Systems7.8yrsUS$3.55m0.24% $7.3m
George Wilson
President of ECS1.8yrsUS$3.63m0.012% $372.3k
Peter Dameris
0.8yrsUS$14.02m0.53% $15.9m
Michael Payne
Chief Information Officer & Senior VP16.6yrsUS$415.15kno data
James Brill
Senior VP7.4yrsUS$1.20mno data
Jennifer Painter
Senior VP4.3yrsUS$996.72k0.086% $2.6m
Adam Bleibtreu
Chief Marketing Officer4.6yrsno datano data
Angela Kolarek
Vice President of Human Resources0yrsno datano data

4.6yrs

Average Tenure

61.5yo

Average Age

Experienced Management: ASGN's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Theodore Hanson
CEO, President & DIrector0.8yrsUS$3.19m0.60% $18.2m
Jonathan Holman
Independent Director25.9yrsUS$91.00k0.027% $812.0k
Jeremy Jones
Independent Chairman17yrsUS$142.75k0.12% $3.7m
Mark Frantz
Independent Director0.7yrsno data0.0079% $239.3k
Marty Kittrell
Independent Director7.4yrsUS$94.75k0.011% $334.5k
Arshad Matin
Independent Director5.7yrsUS$87.50k0.022% $653.2k
Mariel Joliet
Director3.1yrsUS$79.75k0.017% $507.8k
Joseph Dyer
Advisor to the Board of Directors1.7yrsno data0.0065% $196.3k
Brian Callaghan
Independent Director7.8yrsUS$77.75k0.74% $22.4m
Edwin Sheridan
Independent Director7.8yrsUS$76.00k1.91% $57.7m

6.5yrs

Average Tenure

54yo

Average Age

Experienced Board: ASGN's board of directors are considered experienced (6.5 years average tenure).


Ownership

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

Ownership Breakdown

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


Top Shareholders

Company Information

ASGN Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ASGN Incorporated
  • Ticker: ASGN
  • Exchange: NYSE
  • Founded: 1985
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: US$3.030b
  • Shares outstanding: 52.80m
  • Website: https://www.asgn.com

Number of Employees


Location

  • ASGN Incorporated
  • 26745 Malibu Hills Road
  • Calabasas
  • California
  • 91301
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ASGNNYSE (New York Stock Exchange)YesCommon SharesUSUSDSep 1992
OA2DB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1992

Biography

ASGN Incorporated provides information technology (IT) and professional staffing services in the technology, digital, creative, engineering, and life sciences fields across commercial and government sectors in the United States and internationally. The company operates through Apex, Oxford, and ECS segments. The Apex segment offers technical, scientific, digital, and creative services and solutions for contract, contract-to-hire, and permanent placement positions to Fortune 1000 and mid-market clients. The Oxford segment provides specialized staffing and permanent placement services in the areas of technical, digital, engineering, and life sciences resources and consulting in various skill and geographic markets. The ECS Segment delivers advanced solutions in cloud, cyber security, artificial intelligence, machine learning, software development, IT modernization, and science and engineering, as well as focuses on federal government activities. The company was formerly known as On Assignment, Inc. and changed its name to ASGN Incorporated in April 2018. ASGN Incorporated was founded in 1985 and is headquartered in Calabasas, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:22
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
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.