(PSN) Parsons - NYSE
Sector: Technology | Industry: Information Technology Services | Exchange: NYSE (USA) | Market Cap: 6.066m USD | Total Return: -18.7% in 12m
Avg Turnover: 59.3M
EPS Trend: 85.0%
Qual. Beats: 1
Rev. Trend: 79.8%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Parsons Corporation (NYSE: PSN) is a technology-focused solutions provider operating through two primary segments: Federal Solutions and Critical Infrastructure. The Federal Solutions division delivers high-barrier-to-entry technical services including cyber security, electronic warfare, missile defense, and space ground systems for the U.S. government. The Critical Infrastructure segment focuses on engineering and management services for complex physical assets such as aviation hubs, rail systems, and water treatment facilities.
The company operates within the Aerospace & Defense and Infrastructure sectors, where revenue is often driven by long-term government contracts and federal spending bills. A key component of its business model is the integration of proprietary software and digital transformation tools into traditional civil engineering projects to improve operational efficiency. For a deeper look into these fundamental drivers, you can explore the data on ValueRay.
Headquartered in Chantilly, Virginia, Parsons maintains a diversified portfolio that balances defense-related missions with domestic infrastructure modernization. This dual-segment approach allows the firm to leverage technical expertise across both national security applications and large-scale public works projects.
- Increased Department of Defense spending on cyber and missile defense drives revenue
- Infrastructure Investment and Jobs Act funding fuels long-term critical infrastructure backlog
- Federal contract win rates and high book-to-bill ratios signal future earnings growth
- Strategic acquisitions in electronic warfare and space systems expand high-margin technical capabilities
- Shift toward high-growth digital transformation services improves overall corporate operating margins
| Net Income: 227.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA -2.64 > 1.0 |
| NWC/Revenue: 17.69% < 20% (prev 7.91%; Δ 9.78% < -1%) |
| CFO/TA 0.08 > 3% & CFO 486.5m > Net Income 227.9m |
| Net Debt (1.56b) to EBITDA (538.8m): 2.89 < 3 |
| Current Ratio: 1.75 > 1.5 & < 3 |
| Outstanding Shares: last quarter (108.4m) vs 12m ago -2.37% < -2% |
| Gross Margin: 22.77% > 18% (prev 21.21%; Δ 1.57% > 0.5%) |
| Asset Turnover: 110.0% > 50% (prev 124.2%; Δ -14.27% > 0%) |
| Interest Coverage Ratio: 7.59 > 6 (EBIT TTM 418.1m / Interest Expense TTM 55.1m) |
| A: 0.19 (Total Current Assets 2.59b - Total Current Liabilities 1.48b) / Total Assets 6.01b |
| B: 0.12 (Retained Earnings 709.7m / Total Assets 6.01b) |
| C: 0.07 (EBIT TTM 418.1m / Avg Total Assets 5.73b) |
| D: 0.81 (Book Value of Equity 2.65b / Total Liabilities 3.26b) |
| Altman-Z'' = 2.95 = A |
| DSRI: 1.17 (Receivables 2.12b/1.95b, Revenue 6.30b/6.77b) |
| GMI: 0.93 (GM 21.21% / 22.77%) |
| AQI: 1.02 (AQ_t 0.52 / AQ_t-1 0.51) |
| SGI: 0.93 (Revenue 6.30b / 6.77b) |
| TATA: -0.04 (NI 227.9m - CFO 486.5m) / TA 6.01b) |
| Beneish M = -2.99 (Cap -4..+1) = A |
As of June 14, 2026, the stock is trading at USD 56.70 with a total of 651,966 shares traded.
Over the past week, the price has changed by -3.44%,
over one month by +12.63%,
over three months by +3.18% and
over the past year by -18.70%.
Parsons has received a consensus analysts rating of 3.82. Therefore, it is recommended to buy PSN.
- StrongBuy: 4
- Buy: 1
- Hold: 6
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 69.6 | 22.8% |
P/E Trailing = 27.1292
P/E Forward = 14.6843
P/S = 0.9626
P/B = 2.3127
Revenue TTM = 6.30b USD
EBIT TTM = 418.1m USD
EBITDA TTM = 538.8m USD
Long Term Debt = 1.51b USD (from longTermDebt, last quarter)
Short Term Debt = 42.8m USD (from shortTermDebt, last quarter)
Debt = 1.84b USD (from shortLongTermDebtTotal, last quarter) + Leases 164.1m
Net Debt = 1.56b USD (calculated: Debt 1.84b - CCE 283.9m)
Enterprise Value = 7.62b USD (6.07b + Debt 1.84b - CCE 283.9m)
Interest Coverage Ratio = 7.59 (Ebit TTM 418.1m / Interest Expense TTM 55.1m)
EV/FCF = 18.28x (Enterprise Value 7.62b / FCF TTM 417.1m)
FCF Yield = 5.47% (FCF TTM 417.1m / Enterprise Value 7.62b)
FCF Margin = 6.62% (FCF TTM 417.1m / Revenue TTM 6.30b)
Net Margin = 3.62% (Net Income TTM 227.9m / Revenue TTM 6.30b)
Gross Margin = 22.77% ((Revenue TTM 6.30b - Cost of Revenue TTM 4.87b) / Revenue TTM)
Gross Margin QoQ = 23.97% (prev 23.03%)
Tobins Q-Ratio = 1.27 (Enterprise Value 7.62b / Total Assets 6.01b)
Interest Expense / Debt = 2.99% (Interest Expense 55.1m / Debt 1.84b)
Taxrate = 19.49% (70.8m / 363.0m)
NOPAT = 336.6m (EBIT 418.1m * (1 - 19.49%))
Current Ratio = 1.75 (Total Current Assets 2.59b / Total Current Liabilities 1.48b)
Debt / Equity = 0.69 (Debt 1.84b / totalStockholderEquity, last quarter 2.65b)
Debt / EBITDA = 2.89 (Net Debt 1.56b / EBITDA 538.8m)
Debt / FCF = 3.73 (Net Debt 1.56b / FCF TTM 417.1m)
Total Stockholder Equity = 2.59b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.98% (Net Income 227.9m / Total Assets 6.01b)
RoE = 8.79% (Net Income TTM 227.9m / Total Stockholder Equity 2.59b)
RoCE = 10.19% (EBIT 418.1m / Capital Employed (Equity 2.59b + L.T.Debt 1.51b))
RoIC = 7.84% (NOPAT 336.6m / Invested Capital 4.29b)
WACC = 7.94% (E(6.07b)/V(7.91b) * Re(9.62%) + D(1.84b)/V(7.91b) * Rd(2.99%) * (1-Tc(0.19)))
Discount Rate = 9.62% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -46.67 | Cagr: -2.82%
[DCF] Terminal Value 73.10% ; FCFF base≈459.0m ; Y1≈402.5m ; Y5≈325.2m
[DCF] Fair Price = 34.24 (EV 5.22b - Net Debt 1.56b = Equity 3.66b / Shares 107.0m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 85.04 | EPS CAGR: 16.93% | SUE: 1.11 | # QB: 1
Revenue Correlation: 79.79 | Revenue CAGR: 10.95% | SUE: -0.09 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.76 | Chg30d=-6.49% | Revisions=-65% | Analysts=13
EPS next Quarter (2026-09-30): EPS=0.87 | Chg30d=-1.23% | Revisions=-33% | Analysts=13
EPS current Year (2026-12-31): EPS=3.31 | Chg30d=+1.70% | Revisions=+38% | GrowthEPS=+4.5% | GrowthRev=+4.5%
EPS next Year (2027-12-31): EPS=3.69 | Chg30d=-0.23% | Revisions=-14% | GrowthEPS=+11.2% | GrowthRev=+7.2%
[Analyst] Revisions Ratio: -65%