PSN Stock Analysis: Parsons | NYSE
Information Technology Services | NYSE, USA | Market Cap: 5.950m USD | 12M Return: -26.7% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 57.9M
EPS Trend: 81.2%
Qual. Beats: 1
Rev. Trend: 79.8%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 7.1 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.-based provider of design, engineering, and technical services, along with smart and agile software solutions, primarily serving the federal government and critical infrastructure customers globally. The company operates through two segments: Federal Solutions, which delivers technologies and expertise in areas such as cyber, missile defense, intelligence, electronic warfare, satellite ground systems, and biometrics; and Critical Infrastructure, which focuses on digital solutions and engineering services for transportation systems, bridges, highways, water infrastructure, and urban development, including its digital transformation arm, ParsonsX. Founded in 1944 and headquartered in Chantilly, Virginia, Parsons generates the bulk of its revenue from government contracts, making it heavily dependent on U.S. federal spending. Listed in the Aerospace & Defense sub-industry under GICS, the company combines traditional engineering work with growing exposure to digital and cybersecurity capabilities, reflecting the broader trend of convergence between physical infrastructure and advanced software-driven defense solutions.
- Federal defense budget growth boosts cyber and space bookings
- Infrastructure bill funding accelerates Critical Infrastructure backlog
- Book-to-bill ratio sustains organic revenue growth above market
| 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 July 14, 2026, the stock is trading at USD 54.86 with a total of 537,602 shares traded. Over the past week, the price has changed by -4.51%, over one month by -1.14%, over three months by -2.26% and over the past year by -26.73%.
Current recommended Stop Loss: 51.50 (which is 6.1% or 1.4 ATR below the current price).
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 | 69.1 | 25.9% |
P/E Trailing = 26.6124
P/E Forward = 14.6843
P/S = 0.9487
P/B = 2.2864
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 = 7.51b USD (5.95b + Debt 1.84b - CCE 283.9m)
Interest Coverage Ratio = 7.59 (Ebit TTM 418.1m / Interest Expense TTM 55.1m)
EV/FCF = 18.00x (Enterprise Value 7.51b / FCF TTM 417.1m)
FCF Yield = 5.56% (FCF TTM 417.1m / Enterprise Value 7.51b)
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 = 1.25 (Enterprise Value 7.51b / 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 = 8.05% (E(5.95b)/V(7.79b) * Re(9.79%) + D(1.84b)/V(7.79b) * Rd(2.99%) * (1-Tc(0.19)))
Discount Rate = 9.79% (= 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: 81.21 | EPS CAGR: 15.67% | SUE: 1.10 | # 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=-0.20% | Revisions=-69% | Analysts=13
EPS next Quarter (2026-09-30): EPS=0.87 | Chg30d=+0.47% | Revisions=-36% | Analysts=13
EPS current Year (2026-12-31): EPS=3.32 | Chg30d=+0.10% | Revisions=+40% | GrowthEPS=+4.6% | GrowthRev=+4.5%
EPS next Year (2027-12-31): EPS=3.70 | Chg30d=+0.27% | Revisions=-15% | GrowthEPS=+11.4% | GrowthRev=+7.5%
[Analyst] Revisions Ratio: -24% (up=17, down=29)