Parsons (PSN) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Parsons

NYSE•Technology•Information Technology Services

$51.76-1.19(-0.02%)After hours

Market Cap

$5.62B

P/E

38.1x

P/S

0.9x

P/B

2.1x

Parsons Corporation provides design, engineering and technical services, and smart and agile software for the United States federal government and critical infrastructure customers worldwide. 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.

How this company scores

AverageMetricSide Score: 52/100

Strongest: Cash & Earnings Quality (21/25); weakest: Growth (5/25).

Profitability9/25

Growth5/25

Balance Sheet & Red Flags17/25

Cash & Earnings Quality21/25

Strengths

Cash-backed earningsImproving marginsNo share dilution

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 38.1x5y range 15.5x – 313.1x

Currently near its 20-quarter median.

P/S · 0.9x5y range 0.9x – 1.7x

Currently near its 20-quarter median.

P/B · 2.1x5y range 1.8x – 4.7x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 24.1% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $5.62B

Metrics at a Glance

as of September 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $6.32B
Q. Revenue: $1.65B
TTM EBITDA: $443.34M
TTM Op. Income: $306.01M
Q. Op. Income: $103.82M
TTM Net Income: $147.44M
Q. Net Income: $54.15M
EPS: $0.51
Shares Out.: $106.18M

$6.32B in TTM revenue declined 2.7% YoY, reaching $1.65B last quarter. TTM EBITDA of $443.34M and TTM operating income of $306.01M show growth is flowing through to the bottom line. TTM net income of $147.44M means revenue is converting into profit. Over the past year, TTM revenue is down 3% — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 23.1%
EBITDA Margin: 8.4%
Op. Margin: 6.3%
Net Margin: 3.3%

Op. margin of 6.3% is down 0.4% YoY — costs are rising relative to revenue. Net margin at 3.3% and gross margin of 23.1% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 6% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 38.1x
P/S Ratio: 0.9x
P/B Ratio: 2.1x

At 38.1x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 0.9x and P/B of 2.1x provide additional context. P/E sits above typical market levels while revenue growth is below 5%. Across the last 8 quarters, P/E has risen for 2 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $5.99B
Cash: $296.95M
Long-Term Debt: $1.36B
Book Value: $2.64B
D/E Ratio: 0.5
Debt/EBITDA: 9.8

With $5.99B in assets and $1.36B in long-term debt, D/E is 0.5and book value is $2.64B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 2 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $268.74M
TTM Free Cash Flow: $409.24M
FCF Margin: 6.5%
FCF / Net Income: 2.8

TTM FCF of $409.24M on $268.74M in operating cash flow. The FCF / Net Income ratio of 2.8x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 7% — an improving trend.