PSNParsons Corporation
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.6×).
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Margins have held roughly steady, a stable cost structure.
A balanced mix of margins, efficiency, and leverage. ROE 8% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is PSN?
Parsons Corporation earns 6.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 2.6 points below what the capital costs: growth destroys value
- Operating margin
- 4.9%
Operating margin · Information Technology Services median 9.5% · 12 months to Q2 2026
- Cash conversion
- 1.55×
Cash conversion · 1.72× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −2.2%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 4.5% |
| FY2021 | 3.6% |
| FY2022 | 4.4% |
| FY2023 | 5.3% |
| FY2024 | 6.3% |
| FY2025 | 6.6% |
Details›
- Gross margin12 months to Q2 2026
- 22%
- Operating margin12 months to Q2 2026
- 4.9%
- Net margin12 months to Q2 2026
- 2.5%
- Free cash flow margin
- 4.9%
- Revenue, trailing twelve months
- $6.29B
- Free cash flow, trailing twelve months
- $308M
- Net income, trailing twelve months
- $157M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 6.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Information Technology Services
Ranks #13 of 30 by RyuScore