📊 PSN Key Takeaways
Is Parsons Corp. (PSN) a Good Investment?
Parsons exhibits severe fundamental deterioration despite anomalous revenue growth, evidenced by negative operating cash flow (-$3.7M), negative free cash flow (-$18.6M), and declining net income (-21.9% YoY). The massive 14,426% revenue surge appears to be a one-time acquisition rather than sustainable organic growth, while catastrophically low returns on capital (ROE 2.0%, ROA 0.9%) indicate value destruction for shareholders.
Parsons Corp. Key Strengths (PSN)
- Debt-to-equity ratio of 0.57x provides reasonable financial leverage headroom
- Current ratio of 1.75x indicates adequate short-term liquidity position
- Positive operating income of $95.7M provides some earnings foundation
PSN Stock Risks: Parsons Corp. Investment Risks
- Negative operating cash flow of -$3.7M with $1.5B debt outstanding is unsustainable and signals working capital deterioration or earnings quality issues
- Declining net income (-21.9% YoY) despite massive revenue growth indicates the acquired revenue is low-margin or integration-burdened
- Abysmal returns on capital (ROE 2.0%, ROA 0.9%) demonstrate the company destroys shareholder value despite $6B asset base
- The 14,426% revenue anomaly likely represents a major acquisition whose integration risks are evident in collapsing profitability and cash generation
Key Metrics to Watch
- Operating cash flow trend - must achieve sustained positive OCF to remain solvent
- Free cash flow recovery and debt service capability
- Organic revenue growth ex-acquisition to assess underlying business quality
- Return on equity and return on assets trajectory toward industry benchmarks
Parsons Corp. (PSN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Parsons Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
PSN Profit Margin, ROE & Profitability Analysis
PSN vs Technology Sector: How Parsons Corp. Compares
How Parsons Corp. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Parsons Corp. Stock Overvalued? PSN Valuation Analysis 2026
Based on fundamental analysis, Parsons Corp. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Parsons Corp. Balance Sheet: PSN Debt, Cash & Liquidity
PSN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Parsons Corp.'s revenue has grown significantly by 71% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.42 reflects profitable operations.
PSN Revenue Growth, EPS Growth & YoY Performance
PSN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.5B | $52.9M | $0.49 |
| Q3 2025 | $1.6B | $64.1M | $0.59 |
| Q2 2025 | $1.6B | $55.2M | $0.50 |
| Q1 2025 | $1.5B | $39.8M | $0.37 |
| Q3 2024 | $1.4B | $33.8M | $0.31 |
| Q2 2024 | $1.4B | -$38.2M | $-0.36 |
| Q1 2024 | $1.2B | $25.6M | $0.23 |
| Q3 2023 | $1.1B | $29.6M | $0.27 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Parsons Corp. Dividends, Buybacks & Capital Allocation
PSN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Parsons Corp. (CIK: 0000275880)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PSN
What is the AI rating for PSN?
Parsons Corp. (PSN) has an AI grade of D with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PSN's key strengths?
Claude: Debt-to-equity ratio of 0.57x provides reasonable financial leverage headroom. Current ratio of 1.75x indicates adequate short-term liquidity position.
What are the risks of investing in PSN?
Claude: Negative operating cash flow of -$3.7M with $1.5B debt outstanding is unsustainable and signals working capital deterioration or earnings quality issues. Declining net income (-21.9% YoY) despite massive revenue growth indicates the acquired revenue is low-margin or integration-burdened.
What is PSN's revenue and growth?
Parsons Corp. reported revenue of $1.5B.
Does PSN pay dividends?
Parsons Corp. does not currently pay dividends.
Where can I find PSN SEC filings?
Official SEC filings for Parsons Corp. (CIK: 0000275880) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PSN's EPS?
Parsons Corp. has a diluted EPS of $0.49.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is PSN's fundamental grade?
Based on our AI fundamental analysis in May 2026, Parsons Corp. has a D grade with 85% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is PSN stock overvalued or undervalued?
Valuation metrics for PSN: ROE of 2.0% (sector avg: 22%), net margin of 3.5% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is PSN's AI grade for 2026?
Our dual AI analysis gives Parsons Corp. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PSN's free cash flow?
Parsons Corp.'s operating cash flow is $-3.7M, with capital expenditures of $14.9M. FCF margin is -1.2%.
How does PSN compare to other Technology stocks?
Vs Technology sector averages: Net margin 3.5% (avg: 18%), ROE 2.0% (avg: 22%), current ratio 1.75 (avg: 2.5).