Parsons Corporation Common Stock (PSN)

FairStock Score: 42/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I see Parsons as a government and infrastructure engineering-services firm whose history looks steadier than its recent numbers. Its edge, if any, is its entrenched position with U.S. federal and critical infrastructure customers, but the numbers do not show a wide moat: ROCE is only 3.62%. It earned STALWART status under the Lynch-style rule—19.6% annual profit growth over five years and 10.2% revenue growth—yet the filed record now shows cracks. Fiscal 2025 revenue was $6.4B, down from $6.8B in fiscal 2024, while net income was $241.1M versus $235.1M and diluted EPS was $2.20 versus $2.12. Fiscal 2023 net income was $161.1M on $5.4B of revenue, so the multiyear climb was real. In fiscal Q1 2026, revenue was $1.5B and net income was $52.9M, or $0.49 per diluted share, but the latest quarter in the data swung to a loss. Returns are modest: ROE 8.24%, Piotroski 5/9, and Altman Z 1.49. Debt-to-equity is 0.60, and trailing free cash flow of $308.1M gives a 6.6% FCF yield. At the 2026-10-13 close of $43.78, FairStock shows a P/E of 30.19, P/B of 1.78, EV/EBITDA of 12.89, and a Graham Number of $28.35—a negative 54.43% margin of safety. I would need the loss to be one-off and margins to recover before calling this a bargain.

In plain English: Parsons is an engineering and technology services company that mostly serves the U.S. government and critical infrastructure customers. It has decent cash generation and a history of steady growth, but recent results weakened, including a quarterly loss, and profitability looks thin. The stock price looks high compared with the company's profits and net assets, so it is not an obvious bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer