PSN · NYSE · Technology
Parsons Corporation (PSN) — Rank #284 by gross profitability (GP/assets 0.24) · ROE 9.1% · Piotroski F-Score 6 / 9.
As-of 2026-10-30 · CIK 0000275880 · all metrics point-in-time as of the filing date.
About
Parsons Corporation provides design, engineering and technical services, and smart and agile software for the United States federal government and critical infrastructure customers worldwide.
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It operates through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment offers critical technologies, such as cyber; air and missile defense; intelligence; aviation modernization; electronic warfare; space ground systems, cislunar, A-PNT, and classified sensors; geospatial and signals intelligence; environmental remediation; border security and counter-drug, critical infrastructure protection; counter unmanned air systems; biometrics; and bio surveillance solutions. This segment also provides software and hardware, and technical expertise; satellite ground systems support and operations, flight dynamics, data fusion and analytics, platform system integration, directed energy, joint all-domain operations, and command and control systems; digital landscape, including full-spectrum cyber, defensive cyber operations, information operations, and analytics; and electronic warfare, multi-domain operations, mission support and national to tactical operations, as well as cyber solutions and products. The Critical Infrastructure segment develops digital solutions for aviation, rail and transit, bridges, roads, highways, and urban destinations. This segment also provides planning, engineering, and management services for complex infrastructure comprising bridges, tunnels, roads and highways, and water and wastewater systems; intelligent transportation systems, utilities, environmental remediation, emerging contaminants, aviation, and rail and transit, as well as ParsonsX, a digital transformation organization; and multi-disciplinary design, technical, and management solutions.
Parsons Corporation was founded in 1944 and is headquartered in Chantilly, Virginia.
- Industry
- Information Technology Services
- Sector
- Technology
- State
- DE
- Filer Category
- Large accelerated filer
- Fiscal Year End
- December 31
- Website
- parsons.com
Company Snapshot
P/E and reverse DCF are the primary valuation lenses at this stage.
Market Cap
—
P/E (annual)
—
P/S (annual)
—
P/B
—
P/OCF (annual)
—
Shareholder Yield
—
Employees
21,000
Industry
Information Technology Services
Exchange
NYSE
11/12
Flags passed
PSN fails 1 critical flag
Passes 11 of 12 quality flags
- FAILRevenue declining YoY
Revenue contracted year over year
- PASSGross margin holding
- PASSDilution within 2%
- PASSFCF not negative from investment
- PASSDisclosure consistent
- PASSOperating margin holding
- PASSFree cash flow intact
- PASSPasses safety gate
- PASSBalance sheet stable
- PASSNo competitive retreat
- PASSSBC not compressing margin
- PASSNo valuation convergence
Strengths Operating leverage expanding · RPO outpacing revenue · Sequential beat (rev + EPS)
A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
3/3 passGrowth
1/2 passFCF yield, shareholder yield, and buyback activity are the primary reads at this stage.
Profitability
Does it make money well?
Warning: Revenue declining YoY · GP/assets 0.24
Gross profitability (GP / assets)
0.24
Primary signal (Novy-Marx).
6th of 8 SIC 7373 peers
Return on equity
9.1%
Gross margin
22.5%
6th of 7 SIC 7373 peers
Revenue growth (YoY)
-5.7%
RPO growth (YoY)
6.0%
Remaining performance obligations growth — RPO > revenue = forward demand building.
Gross margin improving
Margin trend vs prior year.
Operating Leverage
| 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|
| Revenue vs COGS | ||||
| Revenue vs OpEx | ||||
| Op. Income vs Revenue |
Growth
Revenue CAGR (3Y)
14.9%
Revenue CAGR (5Y)
10.2%
Earnings CAGR (3Y)
35.6%
FCF CAGR (3Y)
25.6%
Cash Flow Health
Is the cash real?
No warning flags · FCF 70% above net income
Free cash flow
$410.41M
Operating cash flow minus capex.
Positive free cash flow
FCF vs net income
70.2%
(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.
FCF not below net income
Fails when free cash flow is below net income (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
0.7%
Stock-based comp intensity.
Balance Sheet Strength
Can it survive a storm?
No warning flags · net debt $1.06B, F-Score 6/9
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
1.18
6th of 8 SIC 7373 peers (best = lowest)
Current ratio
1.59×
6th of 8 SIC 7373 peers
Quick ratio
0.87×
Net cash
-$1.06B
Cash & equivalents minus total debt.
Piotroski F-Score
6 / 9
Fundamental-strength score (0-9).
Valuation
Is the price reasonable?
No warning flags
Capital allocation quality
Composite score
4.0 / 5
Lifecycle Phase History
Price History
Source filings on SEC EDGAR: 10-K annual reports · 10-Q quarterly reports