Parsons Corporation Common Stock (PSN)

FairStock Score: 42/100 — MIXED

Key Financials

Strengths

• Generates $278 million in annual free cash flow (5.0% yield on market cap)
• Solid return on equity of 11.7% above cost of capital
• Established organization with 21,000 employees providing operational scale

Concerns

• Revenue declining at 7.5% year-over-year signals potential demand weakness or market share loss

AI Analysis

Parsons Corporation Common Stock is a small-cap technology company valued at $5.5 billion. The business generates $6.4 billion in annual revenue with a 0.9% net margin and $278 million in free cash flow. From a quality standpoint, Parsons shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 1.8 in the grey zone. On valuation, the stock is reasonably priced at 23.6x earnings, with trades above its Graham Number with a negative 48% margin. Growth dynamics show revenue growing at -7.5% and profit growth of -72.4%. Our composite FairStock Score of 42/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $278 million in annual free cash flow (5.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the technology space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer