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Parsons

NYSE:PSN
Snowflake Description

Adequate balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PSN
NYSE
$3B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Parsons Corporation provides technology based solutions in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. The last earnings update was 29 days ago. More info.


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  • Parsons has significant price volatility in the past 3 months.
PSN Share Price and Events
7 Day Returns
10%
NYSE:PSN
-5.7%
US Aerospace & Defense
2.4%
US Market
1 Year Returns
-
NYSE:PSN
-16.9%
US Aerospace & Defense
-10%
US Market
PSN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Parsons (PSN) 10% -0.9% -23.1% - - -
US Aerospace & Defense -5.7% -22.7% -32.4% -16.9% -4.5% 17.8%
US Market 2.4% -11% -19.4% -10% 9.6% 21.1%
1 Year Return vs Industry and Market
  • No trading data on PSN.
  • No trading data on PSN.
Price Volatility
Industry
5yr Volatility vs Market

PSN Value

 Is Parsons undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Parsons to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Parsons.

NYSE:PSN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:PSN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.846 (1 + (1- 21%) (15.09%))
0.964
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.96
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.964 * 5.44%)
6.99%

Discounted Cash Flow Calculation for NYSE:PSN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Parsons is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NYSE:PSN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.99%)
2020 192.00 Analyst x3 179.46
2021 289.56 Analyst x4 252.98
2022 332.00 Analyst x1 271.12
2023 362.95 Est @ 9.32% 277.04
2024 388.52 Est @ 7.05% 277.20
2025 409.72 Est @ 5.45% 273.23
2026 427.50 Est @ 4.34% 266.47
2027 442.72 Est @ 3.56% 257.94
2028 456.06 Est @ 3.01% 248.37
2029 468.07 Est @ 2.63% 238.26
Present value of next 10 years cash flows $2,542.00
NYSE:PSN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $468.07 × (1 + 1.74%) ÷ (6.99% – 1.74%)
$9,078.05
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $9,078.05 ÷ (1 + 6.99%)10
$4,620.97
NYSE:PSN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,542.00 + $4,620.97
$7,162.97
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7,162.97 / 100.67
$71.15
NYSE:PSN Discount to Share Price
Calculation Result
Value per share (USD) From above. $71.15
Current discount Discount to share price of $33.25
= -1 x ($33.25 - $71.15) / $71.15
53.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Parsons is available for.
Intrinsic value
>50%
Share price is $33.25 vs Future cash flow value of $71.15
Current Discount Checks
For Parsons to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Parsons's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Parsons's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Parsons's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Parsons's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:PSN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $1.30
NYSE:PSN Share Price ** NYSE (2020-04-07) in USD $33.25
United States of America Aerospace & Defense Industry PE Ratio Median Figure of 39 Publicly-Listed Aerospace & Defense Companies 13.44x
United States of America Market PE Ratio Median Figure of 2,948 Publicly-Listed Companies 12.95x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Parsons.

NYSE:PSN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:PSN Share Price ÷ EPS (both in USD)

= 33.25 ÷ 1.30

25.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Parsons is overvalued based on earnings compared to the US Aerospace & Defense industry average.
  • Parsons is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Parsons's expected growth come at a high price?
Raw Data
NYSE:PSN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 25.49x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
16.3%per year
United States of America Aerospace & Defense Industry PEG Ratio Median Figure of 31 Publicly-Listed Aerospace & Defense Companies 1.65x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.92x

*Line of best fit is calculated by linear regression .

NYSE:PSN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 25.49x ÷ 16.3%

1.57x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Parsons is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Parsons's assets?
Raw Data
NYSE:PSN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $16.19
NYSE:PSN Share Price * NYSE (2020-04-07) in USD $33.25
United States of America Aerospace & Defense Industry PB Ratio Median Figure of 53 Publicly-Listed Aerospace & Defense Companies 1.71x
United States of America Market PB Ratio Median Figure of 5,162 Publicly-Listed Companies 1.26x
NYSE:PSN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:PSN Share Price ÷ Book Value per Share (both in USD)

= 33.25 ÷ 16.19

2.05x

* Primary Listing of Parsons.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Parsons is overvalued based on assets compared to the US Aerospace & Defense industry average.
X
Value checks
We assess Parsons's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Parsons has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PSN Future Performance

 How is Parsons expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Parsons expected to grow at an attractive rate?
  • Parsons's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Parsons's earnings growth is expected to exceed the United States of America market average.
  • Parsons's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:PSN Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:PSN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 16.3%
NYSE:PSN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 3.2%
United States of America Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 10.3%
United States of America Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:PSN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:PSN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 4,419 377 184 2
2021-12-31 4,168 334 187 8
2020-12-31 3,968 239 154 8
2020-04-08
NYSE:PSN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 3,955 220 121
2019-09-30 3,846 315 114
2019-06-30 3,799 245 99
2019-03-31 3,710 290 207
2018-12-31 3,561 285 222
2017-12-29 3,017 265 97

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Parsons's earnings are expected to grow by 16.3% yearly, however this is not considered high growth (20% yearly).
  • Parsons's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:PSN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Parsons Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PSN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 1.89 1.89 1.88 2.00
2021-12-31 1.91 2.67 1.29 6.00
2020-12-31 1.61 2.31 1.05 7.00
2020-04-08
NYSE:PSN Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 1.30
2019-09-30 1.31
2019-06-30 1.20
2019-03-31 2.61
2018-12-31 2.78
2017-12-29 1.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Parsons is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Parsons's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Parsons has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PSN Past Performance

  How has Parsons performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Parsons's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insufficient data to establish if Parsons's year on year earnings growth rate was positive over the past 5 years.
  • Parsons's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Parsons's 1-year earnings growth is negative, it can't be compared to the US Aerospace & Defense industry average.
Earnings and Revenue History
Parsons's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Parsons Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PSN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 3,954.81 120.53 770.21
2019-09-30 3,846.36 114.26 739.51
2019-06-30 3,799.24 98.67 710.79
2019-03-31 3,710.23 206.79 635.53
2018-12-31 3,560.51 222.34 591.21
2017-12-29 3,017.01 97.33 506.26
2016-12-30 3,039.19 -13.15 510.51

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Parsons has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Parsons used its assets less efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.
  • Unable to establish if Parsons improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Parsons's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Parsons has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PSN Health

 How is Parsons's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Parsons's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Parsons is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Parsons's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Parsons's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 6.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Parsons Company Filings, last reported 3 months ago.

NYSE:PSN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,660.76 249.35 182.69
2019-09-30 -982.56 249.31 133.87
2019-06-30 -1,342.23 249.26 202.85
2019-03-31 -870.64 659.00 121.41
2018-12-31 -921.08 429.16 280.22
2017-12-29 -1,049.92 249.41 445.16
2016-12-30
  • Parsons's level of debt (15%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Parsons's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (88.3%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.7x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Parsons's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Parsons has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PSN Dividends

 What is Parsons's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Parsons dividends. Estimated to be 0% next year.
If you bought $2,000 of Parsons shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Parsons's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Parsons's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:PSN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United States of America Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 20 Stocks 2.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1935 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:PSN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.00 1.00
2021-12-31 0.00 2.00
2020-12-31 0.00 3.00
2020-04-08

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Parsons has not reported any payouts.
  • Unable to verify if Parsons's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Parsons's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Parsons has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Parsons's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Parsons's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Parsons afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Parsons has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PSN Management

 What is the CEO of Parsons's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chuck Harrington
COMPENSATION $7,742,034
AGE 60
TENURE AS CEO 11.9 years
CEO Bio

Mr. Charles L. Harrington, also known as Chuck, has been Chief Executive Officer at Parsons Corporation since May 2008 and served as its President 2009. Mr. Harrington was the Founder of Parsons Enviornment & Infrastructure Group Inc. He serves as the Chairman and Chief Executive Officer of Parsons Government Services, Inc. He has spent over 30 years with parsons in various operations, including in finance, as chief financial officer and business development roles. Mr. Harrington serves as the Chairman and Chief Executive Officer at Parsons Transportation Group, Inc. He has been the Chairman at Parsons Corporation since May 2008. Mr. Harrington has been a Director of The AES Corporation since December 2013. He served as a Member of Advisory Board at Gates Group Capital Partners. He has been a Director of the J.G. boswell company (privately held) since 2015 and has been a Member of the Boards of the following privately-held or non-profit companies: parsons corporation since 2008, california polytechnic state university and california science center since 2008 and business-higher education forum since 2011. He served as Member of the Boards of anderson school of management at ucla from 2008 to 2014, blumenthal performing arts center from 2006 to 2012. Mr. Harrington received a B.S., magna cum laude, in Engineering from California Polytechnic State University and a M.B.A. in Finance and Marketing from the Anderson School of Management, UCLA.

CEO Compensation
  • Chuck's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Chuck's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Parsons management team in years:

4.5
Average Tenure
59
Average Age
  • The tenure for the Parsons management team is about average.
Management Team

Chuck Harrington

TITLE
Chairman & CEO
COMPENSATION
$8M
AGE
60
TENURE
11.9 yrs

Carey Smith

TITLE
President & COO
COMPENSATION
$2M
AGE
55
TENURE
0.4 yrs

George Ball

TITLE
CFO & Executive VP
COMPENSATION
$2M
AGE
60
TENURE
11.9 yrs

Mike Kolloway

TITLE
Chief Legal Officer & Secretary
COMPENSATION
$1M
AGE
58
TENURE
1.3 yrs

Scott Carl

TITLE
Chief Information Officer

Dave Spille

TITLE
Vice President of Investor Relations

Debra Fiori

TITLE
Chief People Officer

Jim Shappell

TITLE
Vice Chairman
TENURE
4.3 yrs

Virginia Grebbien

TITLE
Chief Corporate Affairs Officer

Rick Henderson

TITLE
Senior Vice President and Middle East Africa Finance Director
TENURE
4.7 yrs
Board of Directors Tenure

Average tenure and age of the Parsons board of directors in years:

8.5
Average Tenure
64
Average Age
  • The tenure for the Parsons board of directors is about average.
Board of Directors

Chuck Harrington

TITLE
Chairman & CEO
COMPENSATION
$8M
AGE
60
TENURE
11.4 yrs

Mark Holdsworth

TITLE
Independent Director
COMPENSATION
$250K
AGE
54
TENURE
14.3 yrs

Tamara Adler Lundgren

TITLE
Independent Director
COMPENSATION
$253K
AGE
61
TENURE
8.8 yrs

Chris Mitchell

TITLE
Independent Director
COMPENSATION
$268K
AGE
64
TENURE
8.3 yrs

Jim McGovern

TITLE
Independent Director
COMPENSATION
$306K
AGE
72
TENURE
15.1 yrs

Kenneth Dahlberg

TITLE
Independent Director
COMPENSATION
$247K
AGE
74
TENURE
9.3 yrs

Steve Leer

TITLE
Independent Director
COMPENSATION
$247K
AGE
66
TENURE
7.3 yrs

Zan Vautrinot

TITLE
Independent Director
COMPENSATION
$245K
AGE
59
TENURE
5.5 yrs

Harry McMahon

TITLE
Independent Director
COMPENSATION
$257K
AGE
65
TENURE
1.8 yrs

Lysa Scully

TITLE
Member of Critical Infrastructure Strategic Advisory Board
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Parsons individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. Mar 20 Buy Harry McMahon Individual 13. Mar 20 16. Mar 20 17,500 $29.18 $502,589
16. Mar 20 Buy Charles Harrington Individual 12. Mar 20 13. Mar 20 16,000 $29.44 $461,773
16. Mar 20 Buy Michael Kolloway Individual 12. Mar 20 12. Mar 20 10,000 $28.60 $286,000
13. Mar 20 Buy George Ball Individual 12. Mar 20 12. Mar 20 30,000 $29.40 $882,000
14. May 19 Buy George Ball Individual 09. May 19 09. May 19 25,000 $29.40 $734,975
X
Management checks
We assess Parsons's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Parsons has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PSN News

Simply Wall St News

Parsons Corporation’s (NYSE:PSN) Investment Returns Are Lagging Its Industry

What is Return On Capital Employed (ROCE)? … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Parsons:0.031 = US$66m ÷ (US$3.3b - US$1.1b) (Based on the trailing twelve months to June 2019.) So, Parsons has an ROCE of 3.1%. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Read This Before You Buy Parsons Corporation (NYSE:PSN) Because Of Its P/E Ratio

The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Parsons: P/E of 4.47 = $35.89 ÷ $8.03 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … A higher P/E ratio means that investors are paying a higher price for each $1 of company earnings. … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Does Parsons's P/E Ratio Compare To Its Peers?

Simply Wall St -

PSN Company Info

Description

Parsons Corporation provides technology based solutions in the defense, intelligence, and critical infrastructure markets in North America, the Middle East, and internationally. It operates in two segments, Federal Solutions and Critical Infrastructure. The company offers cybersecurity software and engineering services, hardware prototyping, and other technical services to the U.S. Army and the United States intelligence community; ThunderRidge, a tool that assists cyber operational users to develop action plans, assess cyber threats, and disseminate situational awareness in real-time; and geospatial intelligence, big data analytics, and threat mitigation technology services to the defense, intelligence, space and command, control, communications, computer, cyber, intelligence, surveillance, and reconnaissance. It also provides mission planning for space situational awareness, small satellite systems integration, electronic warfare, directed energy modeling and simulation, and command and control systems and support to the Missile Defense Agency, the U.S. Air Force, and the U.S. Army; converged cyber-physical solutions for critical infrastructure, and global military mission readiness and training services to the Federal Aviation Administration and the U.S. Army; and technology services for advanced energy production systems, healthcare systems, environmental systems, and related infrastructure. In addition, the company offers intelligent transportation system management, aviation, rail and transit systems, smart cities software, and critical infrastructure cyber protection to the transportation authorities, rail, and transit entities; engineering services for complex infrastructure; and engineering, program management, systems engineering, and environmental solutions to private-sector industrial clients and public utilities. Parsons Corporation was founded in 1944 and is headquartered in Centreville, Virginia.

Details
Name: Parsons Corporation
PSN
Exchange: NYSE
Founded: 1944
$3,347,267,325
100,669,694
Website: http://www.parsons.com
Address: Parsons Corporation
5875 Trinity Parkway,
Suite 300,
Centreville,
Virginia, 20120,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE PSN Common Stock New York Stock Exchange US USD 08. May 2019
DB 59P Common Stock Deutsche Boerse AG DE EUR 08. May 2019
Number of employees
Current staff
Staff numbers
15,879
Parsons employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/08 08:14
End of day share price update: 2020/04/07 00:00
Last estimates confirmation: 2020/04/03
Last earnings filing: 2020/03/10
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.