PSN Stock Analysis: Parsons | NYSE
Information Technology Services | NYSE, USA | Market Cap: 4.497m USD | 12M Return: -48.4% | US70202L1026 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 50.9M
EPS Trend: 25.1%
Qual. Beats: -1
Rev. Trend: 66.4%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 7.4 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 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: 157.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA -4.05 > 1.0 |
| NWC/Revenue: 17.21% < 20% (prev 14.76%; Δ 2.46% < -1%) |
| CFO/TA 0.06 > 3% & CFO 384.3m > Net Income 157.4m |
| Net Debt (1.53b) to EBITDA (394.6m): 3.87 < 3 |
| Current Ratio: 1.66 > 1.5 & < 3 |
| Outstanding Shares: last quarter (108.7m) vs 12m ago -1.27% < -2% |
| Gross Margin: 21.50% > 18% (prev 21.43%; Δ 0.07% > 0.5%) |
| Asset Turnover: 106.4% > 50% (prev 116.8%; Δ -10.41% > 0%) |
| Interest Coverage Ratio: 5.72 > 6 (EBIT TTM 336.5m / Interest Expense TTM 58.9m) |
| A: 0.18 (Total Current Assets 2.72b - Total Current Liabilities 1.64b) / Total Assets 6.11b |
| B: 0.11 (Retained Earnings 694.5m / Total Assets 6.11b) |
| C: 0.06 (EBIT TTM 336.5m / Avg Total Assets 5.91b) |
| D: 0.78 (Book Value of Equity 2.63b / Total Liabilities 3.36b) |
| Altman-Z'' = 2.74 = A |
| DSRI: 1.17 (Receivables 2.21b/2.00b, Revenue 6.29b/6.68b) |
| GMI: 1.00 (GM 21.43% / 21.50%) |
| AQI: 1.01 (AQ_t 0.50 / AQ_t-1 0.50) |
| SGI: 0.94 (Revenue 6.29b / 6.68b) |
| TATA: -0.04 (NI 157.4m - CFO 384.3m) / TA 6.11b) |
| Beneish M = -2.93 (Cap -4..+1) = A |
As of October 12, 2026, the stock is trading at USD 45.08 with a total of 1,183,493 shares traded. Over the past week, the price has changed by +10.52%, over one month by -2.61%, over three months by -19.33% and over the past year by -48.43%.
Current recommended Stop Loss: 43.30 (which is 3.9% or 1.1 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 | 58.7 | 30.3% |
P/E Trailing = 29.0345
P/E Forward = 14.6843
P/S = 0.7146
P/B = 1.7786
Revenue TTM = 6.29b USD
EBIT TTM = 336.5m USD
EBITDA TTM = 394.6m USD
Long Term Debt = 1.47b USD (from longTermDebt, last quarter)
Short Term Debt = 40.3m USD (from shortTermDebt, last quarter)
Debt = 1.80b USD (from shortLongTermDebtTotal, last quarter) + Leases 160.6m
Net Debt = 1.53b USD (calculated: Debt 1.80b - CCE 266.0m)
Enterprise Value = 6.03b USD (4.50b + Debt 1.80b - CCE 266.0m)
Interest Coverage Ratio = 5.72 (Ebit TTM 336.5m / Interest Expense TTM 58.9m)
EV/FCF = 19.56x (Enterprise Value 6.03b / FCF TTM 308.1m)
FCF Yield = 5.11% (FCF TTM 308.1m / Enterprise Value 6.03b)
FCF Margin = 4.90% (FCF TTM 308.1m / Revenue TTM 6.29b)
Net Margin = 2.50% (Net Income TTM 157.4m / Revenue TTM 6.29b)
Gross Margin = 21.50% ((Revenue TTM 6.29b - Cost of Revenue TTM 4.94b) / Revenue TTM)
Gross Margin QoQ = 16.91% (prev 23.97%)
Tobins Q-Ratio = 0.99 (Enterprise Value 6.03b / Total Assets 6.11b)
Interest Expense / Debt = 3.28% (Interest Expense 58.9m / Debt 1.80b)
Taxrate = 20.28% (56.3m / 277.6m)
NOPAT = 268.3m (EBIT 336.5m * (1 - 20.28%))
Current Ratio = 1.66 (Total Current Assets 2.72b / Total Current Liabilities 1.64b)
Debt / Equity = 0.68 (Debt 1.80b / totalStockholderEquity, last quarter 2.63b)
Debt / EBITDA = 3.87 (Net Debt 1.53b / EBITDA 394.6m)
Debt / FCF = 4.96 (Net Debt 1.53b / FCF TTM 308.1m)
Total Stockholder Equity = 2.62b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.66% (Net Income 157.4m / Total Assets 6.11b)
RoE = 6.01% (Net Income TTM 157.4m / Total Stockholder Equity 2.62b)
RoCE = 8.22% (EBIT 336.5m / Capital Employed (Equity 2.62b + L.T.Debt 1.47b))
RoIC = 6.32% (NOPAT 268.3m / Invested Capital 4.24b)
WACC = 8.74% (E(4.50b)/V(6.29b) * Re(11.18%) + D(1.80b)/V(6.29b) * Rd(3.28%) * (1-Tc(0.20)))
Discount Rate = 11.18% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -13.20 | Cagr: 1.11%
[DCF] Terminal Value 71.66% ; FCFF base≈393.0m ; Y1≈344.7m ; Y5≈278.5m
[DCF] Fair Price = 25.03 (EV 4.20b - Net Debt 1.53b = Equity 2.67b / Shares 106.8m; r=8.74% [WACC]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 25.11 | EPS CAGR: 4.31% | SUE: -4.0 | # QB: -1
Revenue Correlation: 66.41 | Revenue CAGR: 6.88% | SUE: -0.35 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.77 | Chg30d=-0.53% | Revisions=-77% | Analysts=12
EPS current Year (2026-12-31): EPS=2.42 | Chg30d=-0.75% | Revisions=-81% | GrowthEPS=-23.8% | GrowthRev=+0.0%
EPS next Year (2027-12-31): EPS=3.40 | Chg30d=-0.66% | Revisions=-81% | GrowthEPS=+40.6% | GrowthRev=+5.9%
[Analyst] Revisions Ratio: -92% (up=0, down=36)