PSN Stock Analysis: Parsons | NYSE
Information Technology Services | NYSE, USA | Market Cap: 5.161m USD | 12M Return: -40% | US70202L1026 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 55.4M
EPS Trend: -24.9%
Qual. Beats: 0
Rev. Trend: 46.3%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 7.5 years of data, until 10/2026
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, ≥40 worth a closer look and ≥60 is strong.
Parsons Corporation (NYSE: PSN) is a U.S.-headquartered provider of design, engineering, and technical services, along with proprietary software, serving the federal government and critical infrastructure markets. The company is organized into two segments: Federal Solutions, which delivers capabilities in cyber, missile defense, intelligence, electronic warfare, space ground systems, biometrics, and related national-security technologies, and Critical Infrastructure, which offers engineering, planning, and digital solutions across transportation (aviation, rail, bridges, highways) and environmental/water systems, including its ParsonsX digital transformation unit. Parsons was founded in 1944 and is headquartered in Chantilly, Virginia.
The company sits within the Industrials sector (GICS sub-industry: Aerospace & Defense) and operates primarily as a government and infrastructure services contractor, generating the bulk of revenue from U.S. federal agencies under long-term cost-reimbursable and fixed-price contracts. Parsons went public on the NYSE in May 2019.
- DoD cyber and space spending expands Federal Solutions backlog
- IIJA infrastructure funding lifts Critical Infrastructure segment growth
- Acquisitions and contract wins accelerate double-digit organic revenue
| Net Income: 147.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA 0.16 > 1.0 |
| NWC/Revenue: 15.22% < 20% (prev 16.34%; Δ -1.12% < -1%) |
| CFO/TA 0.08 > 3% & CFO 490.1m > Net Income 147.4m |
| Net Debt (1.40b) to EBITDA (466.6m): 3.01 < 3 |
| Current Ratio: 1.59 > 1.5 & < 3 |
| Outstanding Shares: last quarter (106.8m) vs 12m ago -2.13% < -2% |
| Gross Margin: 21.76% > 18% (prev 22.05%; Δ -0.29% > 0.5%) |
| Asset Turnover: 107.9% > 50% (prev 113.2%; Δ -5.36% > 0%) |
| Interest Coverage Ratio: 5.34 > 6 (EBIT TTM 329.3m / Interest Expense TTM 61.6m) |
| A: 0.16 (Total Current Assets 2.58b - Total Current Liabilities 1.62b) / Total Assets 5.99b |
| B: 0.13 (Retained Earnings 748.8m / Total Assets 5.99b) |
| C: 0.06 (EBIT TTM 329.3m / Avg Total Assets 5.86b) |
| D: 0.81 (Book Value of Equity 2.64b / Total Liabilities 3.24b) |
| Altman-Z'' = 2.70 = A |
| DSRI: 0.56 (Receivables 1.11b/2.05b, Revenue 6.32b/6.49b) |
| GMI: 1.01 (GM 22.05% / 21.76%) |
| AQI: 1.04 (AQ_t 0.51 / AQ_t-1 0.49) |
| SGI: 0.97 (Revenue 6.32b / 6.49b) |
| TATA: -0.06 (NI 147.4m - CFO 490.1m) / TA 5.99b) |
| Beneish M = -3.38 (Cap -4..+1) = AA |
As of November 11, 2026, the stock is trading at USD 51.56 with a total of 1,024,274 shares traded. Over the past week, the price has changed by -0.39%, over one month by +15.61%, over three months by +11.77% and over the past year by -39.96%.
Current recommended Stop Loss: 47.00 (which is 8.8% or 2.1 ATR below the current price).
Parsons has received a consensus analysts rating of 4.43. Therefore, it is recommended to buy PSN.
- StrongBuy: 9
- Buy: 2
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 60.5 | 17.2% |
P/E Trailing = 35.9559
P/E Forward = 14.6843
P/S = 0.8164
P/B = 1.9566
Revenue TTM = 6.32b USD
EBIT TTM = 329.3m USD
EBITDA TTM = 466.6m USD
Long Term Debt = 1.36b USD (from longTermDebt, last quarter)
Short Term Debt = 38.7m USD (from shortTermDebt, last quarter)
Debt = 1.70b USD (from shortLongTermDebtTotal, last quarter) + Leases 172.0m
Net Debt = 1.40b USD (calculated: Debt 1.70b - CCE 297.0m)
Enterprise Value = 6.57b USD (5.16b + Debt 1.70b - CCE 297.0m)
Interest Coverage Ratio = 5.34 (Ebit TTM 329.3m / Interest Expense TTM 61.6m)
EV/FCF = 16.04x (Enterprise Value 6.57b / FCF TTM 409.2m)
FCF Yield = 6.23% (FCF TTM 409.2m / Enterprise Value 6.57b)
FCF Margin = 6.47% (FCF TTM 409.2m / Revenue TTM 6.32b)
Net Margin = 2.33% (Net Income TTM 147.4m / Revenue TTM 6.32b)
Gross Margin = 21.76% ((Revenue TTM 6.32b - Cost of Revenue TTM 4.95b) / Revenue TTM)
Gross Margin QoQ = 23.15% (prev 16.91%)
Tobins Q-Ratio = 1.10 (Enterprise Value 6.57b / Total Assets 5.99b)
Interest Expense / Debt = 3.62% (Interest Expense 61.6m / Debt 1.70b)
Taxrate = 22.68% (60.7m / 267.7m)
NOPAT = 254.6m (EBIT 329.3m * (1 - 22.68%))
Current Ratio = 1.59 (Total Current Assets 2.58b / Total Current Liabilities 1.62b)
Debt / Equity = 0.64 (Debt 1.70b / totalStockholderEquity, last quarter 2.64b)
Debt / EBITDA = 3.01 (Net Debt 1.40b / EBITDA 466.6m)
Debt / FCF = 3.43 (Net Debt 1.40b / FCF TTM 409.2m)
Total Stockholder Equity = 2.64b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.52% (Net Income 147.4m / Total Assets 5.99b)
RoE = 5.58% (Net Income TTM 147.4m / Total Stockholder Equity 2.64b)
RoCE = 8.24% (EBIT 329.3m / Capital Employed (Equity 2.64b + L.T.Debt 1.36b))
RoIC = 6.20% (NOPAT 254.6m / Invested Capital 4.11b)
WACC = 8.51% (E(5.16b)/V(6.86b) * Re(10.39%) + D(1.70b)/V(6.86b) * Rd(3.62%) * (1-Tc(0.23)))
Discount Rate = 10.39% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -89.43 | Cagr: -1.53%
[DCF] Terminal Value 75.76% ; FCFF base≈398.7m ; Y1≈423.2m ; Y5≈501.0m
[DCF] Fair Price = 57.75 (EV 7.50b - Net Debt 1.40b = Equity 6.09b / Shares 105.5m; r=8.51% [WACC]; 5y FCF grow 6.90% → 2.50% )
EPS Correlation: -24.91 | EPS CAGR: -4.20% | SUE: 0.32 | # QB: 0
Revenue Correlation: 46.31 | Revenue CAGR: 3.32% | SUE: 0.35 | # QB: 0
EPS current Quarter (2027-03-31): EPS=0.78 | Chg30d=-1.47% | Revisions=-17% | Analysts=6
EPS current Year (2026-12-31): EPS=2.45 | Chg30d=+1.56% | Revisions=+70% | GrowthEPS=-22.6% | GrowthRev=+0.0%
EPS next Year (2027-12-31): EPS=3.39 | Chg30d=-0.18% | Revisions=-7% | GrowthEPS=+38.1% | GrowthRev=+4.8%
[Analyst] Revisions Ratio: +21% (up=13, down=8)