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

$47.59+0.01(<0.01%)Pre-market

Market Cap

$4.87B

P/E

31.0x

P/S

0.8x

P/B

1.9x

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

WeakMetricSide Score: 32/100

Grade capped at D — Interest coverage below 1× (0.1x) — earnings cannot cover interest. Strongest: Cash & Earnings Quality (14/25); weakest: Growth (3/25).

Profitability6/25

Growth3/25

Balance Sheet & Red Flags9/25

Cash & Earnings Quality14/25

Strengths

Cash-backed earnings

Grade capped at D

Interest coverage below 1× (0.1x) — earnings cannot cover interest.

Valuation vs. 5-year range

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

P/E · 31.0x5y range 15.5x – 313.1x

Currently below its 20-quarter median.

P/S · 0.8x5y range 0.8x – 1.7x

Currently below its 20-quarter median.

P/B · 1.9x5y 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 21.7% 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 $4.87B

Metrics at a Glance

as of June 2026

Revenue & Profit

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

TTM Revenue: $6.29B
Q. Revenue: $1.58B
TTM EBITDA: $443.20M
TTM Op. Income: $310.15M
Q. Op. Income: $1.29M
TTM Net Income: $157.41M
Q. Net Income: $-15.22M
EPS: $-0.14
Shares Out.: $108.71M

$6.29B in TTM revenue declined 5.8% YoY, reaching $1.58B last quarter. TTM EBITDA of $443.20M and TTM operating income of $310.15M show growth is flowing through to the bottom line. TTM net income of $157.41M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has fallen for 5 consecutive quarters — a weakening trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 18.7%
EBITDA Margin: 2.4%
Op. Margin: 0.1%
Net Margin: -1.0%

Op. margin of 0.1% is down 6.0% YoY — costs are rising relative to revenue. Net margin at -1.0% and gross margin of 18.7% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has fallen for 3 consecutive quarters — a weakening trend.

Price Ratios

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

P/E Ratio: 31.0x
P/S Ratio: 0.8x
P/B Ratio: 1.9x

At 31.0x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 0.8x and P/B of 1.9x provide additional context. P/E sits above typical market levels while revenue growth is below 5%. Over the past year, P/E is up 60% — a weakening trend.

Assets & Liabilities

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

Total Assets: $6.11B
Cash: $266.04M
Long-Term Debt: $1.47B
Book Value: $2.63B
D/E Ratio: 0.6
Debt/EBITDA: 38.9

With $6.11B in assets and $1.47B in long-term debt, D/E is 0.6and book value is $2.63B — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is up 14% — an improving trend.

Cash Flow

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

Op. Cash Flow: $57.58M
TTM Free Cash Flow: $308.14M
FCF Margin: 4.9%
FCF / Net Income: 2.0

TTM FCF of $308.14M on $57.58M in operating cash flow. The FCF / Net Income ratio of 2.0x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is down 41% — a weakening trend.