Parsons Corporation
Rank #299Capital ReturnPSN · NYSE · Technology
Parsons Corporation (PSN) — Rank #299 by gross profitability (GP/assets 0.24) · ROE 9.1% · Piotroski F-Score 6 / 9.
As-of 2026-09-15 · 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
Price History
Company Snapshot
P/E and reverse DCF are the primary valuation lenses at this stage.
Market Cap
$4.98B
P/E (annual)
21.2
P/S (annual)
0.8
P/B
1.9
P/OCF (annual)
10.4
Shareholder Yield
2.2%
Employees
21,000
Industry
Information Technology Services
Exchange
NYSE
Signal Flags
Quality Profile
Profitability
1/1 passSafety
1/1 passCash Flow
3/3 passGrowth
1/2 passTerry Smith quality gate
Passes 1/5 Terry Smith thresholdsWhat Growth Is Priced In
Implied revenue growth (10Y)
1.2%
The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).
Buyback tailwind: -2.2% — per-share value needs a total required return of -1.0% once share-count change is priced in.
vs. own 6-year median revenue growth: 6.8%
within its own historyCost-of-equity sensitivity (implied growth at different discount rates)
r = 8%
-2.7%
r = 10% (base)
1.2%
r = 12%
4.6%
Net debt / market cap: 24.1%
Valuation History
Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.
P / E
Price / diluted EPS
P / S
Price / revenue per share
P / B
Price / book value per share
P / GP
Price / gross profit per share
P / FCF
Price / free cash flow per share
FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.
Profitability
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%
Anti-fragile safety
Balance-sheet safety
Composite anti-fragile check.
Debt / equity
1.18
6th of 8 SIC 7373 peers (best = lowest)
Current ratio
1.75×
3rd of 8 SIC 7373 peers
Quick ratio
0.93×
Net cash
-$1.23B
Cash & equivalents minus total debt.
Cash-flow health
Free cash flow
$410.41M
Operating cash flow minus capex.
Positive free cash flow
FCF / net income
0.70
Cash-backing of earnings.
FCF/NI divergence
Unfavorable divergence (yellow flag).
Accruals healthy
Cash-backed earnings.
SBC / revenue
0.7%
Stock-based comp intensity.
Piotroski F-Score
F-Score
6 / 9
Fundamental-strength score (0-9).
Lifecycle Phase History
Lynch sell alert: Fast grower deceleration
Revenue growth decelerated to -5.7% after being classified hypergrowth as of 2024-12-31 -- Lynch's fast-grower rule: sell once growth slows below the pace that justified the label, not on price weakness.