Investment Thesis
ASGN demonstrates solid operational fundamentals with strong free cash flow generation (7.2% FCF margin) and healthy balance sheet metrics, but faces significant headwinds with revenue declining 2.9% YoY and net income falling 35.2% YoY, indicating deteriorating profitability despite operational cash generation.
ASGN Strengths
- Strong free cash flow generation of $288.1M with 7.2% FCF margin demonstrates cash conversion capability
- Healthy liquidity position with 2.16x current ratio and 2.16x quick ratio providing operational flexibility
- Conservative leverage with 0.65x debt-to-equity ratio and adequate 3.4x interest coverage ratio indicating manageable debt burden
- Operating cash flow of $327.9M exceeds net income, suggesting quality earnings and working capital management
ASGN Risks
- Declining profitability with net income down 35.2% YoY and net margin contracting to 2.9%, signaling margin compression issues
- Revenue contraction of 2.9% YoY indicates organic growth challenges in the staffing services sector
- Low operating margin of 5.8% and net margin of 2.9% provide minimal cushion for operational disruptions or economic headwinds
- Elevated insider activity with 17 Form 4 filings in last 90 days warrants monitoring for potential leadership concerns
- Capital-light business model (capex only 1% of revenue) limits reinvestment capacity for growth initiatives
Key Metrics to Watch
- Quarterly revenue trends to confirm stabilization or continued contraction in staffing demand
- Net margin progression and operating leverage realization as revenue stabilizes
- Free cash flow sustainability and dividend coverage ratios given lower earnings base
- Debt refinancing needs given $1.2B long-term debt maturity schedule
ASGN Financial Metrics
ASGN Profitability Ratios
ASGN Balance Sheet & Liquidity
ASGN 5-Year Financial Trend
5-Year Trend Summary: ASGN Inc's revenue has grown significantly by 11% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.50 reflects profitable operations.
ASGN Growth Metrics (YoY)
ASGN Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.0B | $38.1M | $0.87 |
| Q2 2025 | $1.0B | $29.3M | $0.67 |
| Q1 2025 | $968.3M | $20.9M | $0.48 |
| Q3 2024 | $1.0B | $47.5M | $1.06 |
| Q2 2024 | $1.0B | $47.2M | $1.02 |
| Q1 2024 | $1.0B | $38.1M | $0.81 |
| Q3 2023 | $1.1B | $59.4M | $1.23 |
| Q2 2023 | $1.1B | $60.1M | $1.22 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ASGN Capital Allocation
ASGN SEC Filings
Access official SEC EDGAR filings for ASGN Inc (CIK: 0000890564)