PSNParsons Corporation
Is the business good?
A genuinely good business: earnings fully cash-backed (1.5×) and margins widening.
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.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
A balanced mix of margins, efficiency, and leverage. ROE 9% = 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 8.2% 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% · 0.76 points below what the capital costs: growth destroys value
- Operating margin
- 6.4%
Operating margin · Information Technology Services median 8.0% · 12 months to Q1 2026
- Cash conversion
- 1.49×
Cash conversion · 1.67× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −2.4%
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 Q1 2026
- 23%
- Operating margin12 months to Q1 2026
- 6.4%
- Net margin12 months to Q1 2026
- 3.6%
- Free cash flow margin
- 6.6%
- Revenue, trailing twelve months
- $6.30B
- Free cash flow, trailing twelve months
- $417M
- Net income, trailing twelve months
- $228M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.2%
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 #12 of 31 by RyuScore