Stock analysis · Bull Rankings model

PSN analysis

Parsons CorporationInformation Technology Services. Scored on the same transparent model behind the daily rankings.

PSN
Parsons Corporation · Information Technology Services
FCF$417mC
Rev-6.9%D
D/E0.60C+
P/E33.6xB
PEG
48.3Score
$47.78$5.1B
1Y Target$58.55Analyst consensus · 11 analysts
5Y Target$85.72Compound horizon
10Y Target$127.15Long-dated conviction
FCF$417mTTM
C
FCF $417m — modest; watch for margin expansion
Rev-6.9%TTM YoY
D
Revenue -6.9% — meaningful contraction
D/E0.60
C+
D/E 0.60 — above the Technology debt median (≈75th pctile)
P/E33.6x
B
P/E 33.6 — near the Technology median (≈60th pctile)
PEG
PEG not meaningful — earnings growth negative or data unavailable

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 48.3
Quality0.52
Growth0.33
Value0.66
Entry · Margin of safety
52-week rangeNear 52-week low
47% off the 12-month high
vs DCF fair value61% belowest. fair value ~$122
What the price assumes: free cash flow compounding at ~-8% a year for the next decade — vs the ~25% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability24% · Bgross profit ÷ total assets (Novy-Marx)
ROIC7.7% · C+return on invested capital — not score-weighted
Why now
Information Technology Services · market cap $5.1b. Down 47% from 52-week high of $89.50 — deep drawdown territory. Revenue -7% — in contraction; any catalyst that reverses this triggers re-rating. 11 sell-side analysts rate this a Buy with a mean 1-yr target of $58.55 (implying +23% upside).
Moat
FCF converts 183% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Revenue contracting -7% — the operational turn is not yet visible in the top line. Down 47% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Trailing P/E 34x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.
Horizon
1-3 yr $58.55 (11-analyst consensus) — fundamentals + valuation re-rating. 5 yr $85.72 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $127.15 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

PSN vs the Top Picks average

PillarPSNBook avgDiff
Quality0.520.84-0.32
Growth0.330.92-0.59
Value0.660.75-0.08

Averaged across the 30 names in today's Top Picks (mean score 82.6). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-10.0 over 36 daily scores
From 58.3 (Jun 22) → 48.3 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
41
Position size
$1,959
3.9% of portfolio
Stop price
$35.84
25% below $47.78
$ at risk if stopped
$489.75
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Parsons Corporation (PSN): score, valuation & FAQ

Parsons Corporation (PSN) is a Information Technology Services company that scores 48.3 out of 100 on the Bull Rankings quality-growth model — a below-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

The model flags Rev (D) as weaker areas. On valuation, PSN sits about 61% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -8% annual free-cash-flow growth over the next decade.

Is PSN a good stock to buy?

Bull Rankings scores PSN 48.3 out of 100 on its quality-growth model, which is a below-average reading. A score is a quantitative screen of Parsons Corporation's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does PSN score 48.3 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). PSN grades middle-of-pack across the strip, and is held back by Rev (D). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is PSN overvalued or undervalued?

Based on $47.78, PSN sits about 61% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly -8% annual free-cash-flow growth over the next decade. It trades at a 33.6x× P/E (graded B). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in PSN?

Revenue contracting -7% — the operational turn is not yet visible in the top line. Down 47% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Trailing P/E 34x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

More IT Services stocks by score

All Technology rankings →

Analyze another ticker →