Parsons Corp. (PSN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Guidewire Software, Inc.

Zillow Group, Inc.

SS&C Technologies Holdings, Inc.

CACI International, Inc.

Amdocs Ltd.

EPAM Systems, Inc.

Science Applications International Corp.

Juniper Networks, Inc.

Parsons Corp.

KBR, Inc.

Globant SA

Why is Parsons Corp. ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.59 times

Low Debt Company with Strong Long Term Fundamental Strength

Negative results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 993.67
DEBT-EQUITY RATIO (HY) Highest at 42.63 %
OPERATING PROFIT(Q) Lowest at USD 124.89 MM

With ROCE of 13.33%, it has a fair valuation with a 3.23 Enterprise value to Capital Employed

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -12.51%, its profits have risen by 31.2% ; the PEG ratio of the company is 1.1

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 12.94% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -12.51% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Parsons Corp. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Parsons Corp. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Parsons Corp.

-14.73%

0.29

35.11%

S&P 500

13.22%

0.64

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.75%

EBIT Growth (5y)

28.40%

EBIT to Interest (avg)

8.04

Debt to EBITDA (avg)

1.59

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

1.72

Tax Ratio

21.63%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

9.07%

ROE (avg)

9.04%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.15

EV to EBIT

24.25

EV to EBITDA

20.03

EV to Capital Employed

3.23

EV to Sales

1.65

PEG Ratio

1.06

Dividend Yield

ROCE (Latest)

13.33%

ROE (Latest)

13.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 573.81 MM

ROCE(HY)

Highest at 16.67%

RAW MATERIAL COST(Y)

Fallen by -4.74% (YoY

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 993.67

DEBT-EQUITY RATIO (HY)

Highest at 42.63 %

OPERATING PROFIT(Q)

Lowest at USD 124.89 MM

PRE-TAX PROFIT(Q)

Lowest at USD 89.18 MM

NET PROFIT(Q)

Lowest at USD 55.23 MM

EPS(Q)

Lowest at USD 0.5

Here's what is working for Parsons Corp.

Operating Cash Flow

Highest at USD 573.81 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Raw Material Cost

Fallen by -4.74% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 28.59 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Parsons Corp.

Interest Coverage Ratio

Lowest at 993.67

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at USD 124.89 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Pre-Tax Profit

Lowest at USD 89.18 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 55.23 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.5

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debt-Equity Ratio

Highest at 42.63 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio