Parsons Corp

Technology
EDP Services
www.parsons.com

Earnings Score
Moat Score
Safety Score

Market Cap $5.03B
PE 64
Debt $1.25B
Cash $558.82M
EV $5.72B
FCF $547.01M

Earnings

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Sales & Net Margins

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Earnings	$78.68M
EBIT	$405.70M
ROE	3%
ROA	7%
FCF	$547.01M
Equity	$2.41B
Growth Stability	44%
PE	63.99
PEG	-10.04
PB	2.09
P/FCF	9.2
P/S	0.77
Price/Cash	0.11
Debt/Equity	0.52
Debt/FCF	2.28
Net Margins	1%
Gross Margins	22%
Op. Margins	6%
Earnings CAGR	-11%
Sales Growth YoY	28%
Sales Growth QoQ	8%
Sales CAGR	8%
FCF CAGR	11%
Equity CAGR	7%
Earnings Stability	-0.18
Earnings Growth YoY	52%
Earnings Growth QoQ	4%

Earnings CAGR 5Y	-6%
Sales CAGR 5Y	10%
FCF CAGR 5Y	21%
Equity CAGR 5Y	8%
Earnings CAGR 3Y	25%
Sales CAGR 3Y	25%
FCF CAGR 3Y	44%
Equity CAGR 3Y	9%
Market Cap	$5.03B
Revenue	$6.51B
Assets	$5.44B
Total Debt	$1.25B
Cash	$558.82M
Shares Outstanding	51.36M
EV	5.72B
Earnings Score	6%
Moat Score	54%
Safety Score	66%
Final Score	42%
Working Capital	905.1M
Current Ratio	1.55
Gross Profit	$1.40B
Shares Growth 3y	16%
Equity Growth QoQ	4%
Equity Growth YoY	7%

Assets & ROA

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Stockholders Equity & ROE

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Parsons Corp is a provider of technology-driven solutions in the defense, intelligence, and critical infrastructure markets. The business activities of the group are carried out through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment is a high-end service and technology provider to the U.S. government, delivering timely, cost-effective solutions for mission-critical projects, whereas the Critical Infrastructure segment provides integrated design and engineering services for complex physical and digital infrastructure around the globe.

SEC Filings

Direct access to Parsons Corp (PSN) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Parsons Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Parsons Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -11%

Stability -18%

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Parsons Corp Discounted Cash Flow

Fully customizable DCF calculator online for Parsons Corp.

Years

Calculation mode

= $12B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$547M	$608M	$675M	$750M	$834M	$926M	$1B	$1.1B	$1.3B	$1.4B	$1.6B	$16B
DCF		$552M	$558M	$564M	$569M	$575M	$581M	$587M	$593M	$598M	$604M	$6B
Value	$12B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	3%	6%	3%	3%	2%	2%	3%	1%
ROA	-	10%	3%	5%	3%	4%	6%	7%
ROE	-	-24%	7%	5%	3%	5%	7%	3%

Bad Net Margins (0.67%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	1.68	1.63	2.31	3.21	3.59	2.03	2.28
Debt over Equity	-	-0.47	0.15	0.32	0.31	0.35	0.31	0.52
Growth Stability	-	-	-	67%	44%	100%	100%	44%

Neutral Debt/FCF ratio (2.28)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.52)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (44%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	18%	11%	-1%	-7%	15%	30%	10%
Earnings YoY growth	-	128%	-46%	-18%	-35%	51%	67%	-6%
Equity YoY growth	-	-12%	-280%	12%	4%	8%	13%	8%
FCF YoY growth	-	8%	-40%	67%	-28%	12%	77%	21%