Parsons Corp Total Debt vs. Beta
| PSN Stock | USD 59.05 0.03 0.05% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.18 | 0.2083 |
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| Operating Profit Margin | 0.0351 | 0.0634 |
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| Pretax Profit Margin | 0.0319 | 0.0545 |
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| Return On Assets | 0.0398 | 0.0428 |
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| Return On Equity | 0.0957 | 0.0973 |
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For Parsons Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Parsons Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Parsons Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Parsons Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Parsons Corp over time as well as its relative position and ranking within its peers.
Parsons |
Parsons Corp's Revenue Breakdown by Earning Segment
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Is Aerospace & Defense space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Parsons Corp. If investors know Parsons will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Parsons Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 3.641 | Earnings Share 2.12 | Revenue Per Share | Quarterly Revenue Growth 0.161 | Return On Assets |
The market value of Parsons Corp is measured differently than its book value, which is the value of Parsons that is recorded on the company's balance sheet. Investors also form their own opinion of Parsons Corp's value that differs from its market value or its book value, called intrinsic value, which is Parsons Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Parsons Corp's market value can be influenced by many factors that don't directly affect Parsons Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Parsons Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Parsons Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Parsons Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Parsons Corp Beta vs. Total Debt Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Parsons Corp's current stock value. Our valuation model uses many indicators to compare Parsons Corp value to that of its competitors to determine the firm's financial worth. Parsons Corp is regarded second in total debt category among its peers. It is rated below average in beta category among its peers . The ratio of Total Debt to Beta for Parsons Corp is about 1,815,933,248 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Parsons Corp's earnings, one of the primary drivers of an investment's value.Parsons Corp's Earnings Breakdown by Geography
Parsons Total Debt vs. Competition
Parsons Corp is regarded second in total debt category among its peers. Total debt of Industrials industry is at this time estimated at about 11.27 Billion. Parsons Corp retains roughly 1.41 Billion in total debt claiming about 13% of equities under Industrials industry.
Parsons Beta vs. Total Debt
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Parsons Corp |
| = | 1.41 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Parsons Corp |
| = | 0.78 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Parsons Beta Comparison
Parsons Corp is currently under evaluation in beta category among its peers.
Beta Analysis
As returns on the market increase, Parsons Corp's returns are expected to increase less than the market. However, during the bear market, the loss of holding Parsons Corp is expected to be smaller as well.
Parsons Corp Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Parsons Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Parsons Corp will eventually generate negative long term returns. The profitability progress is the general direction of Parsons Corp's change in net profit over the period of time. It can combine multiple indicators of Parsons Corp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -26.6 M | -25.3 M | |
| Operating Income | 428.1 M | 449.5 M | |
| Income Before Tax | 367.7 M | 386 M | |
| Total Other Income Expense Net | -60.4 M | -57.4 M | |
| Net Income Applicable To Common Shares | 111.2 M | 106.4 M | |
| Net Income | 235.1 M | 154.4 M | |
| Income Tax Expense | 77 M | 80.8 M | |
| Interest Income | 11.4 M | 8 M | |
| Net Interest Income | -40.2 M | -38.1 M | |
| Net Income From Continuing Ops | 290.7 M | 151.9 M | |
| Non Operating Income Net Other | -17.5 M | -18.4 M | |
| Change To Netincome | 32.5 M | 19.4 M | |
| Net Income Per Share | 2.21 | 2.32 | |
| Income Quality | 1.76 | 1.85 | |
| Net Income Per E B T | 0.64 | 0.49 |
Parsons Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Parsons Corp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Parsons Corp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Parsons Corp's important profitability drivers and their relationship over time.
Use Parsons Corp in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Parsons Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Parsons Corp will appreciate offsetting losses from the drop in the long position's value.Parsons Corp Pair Trading
Parsons Corp Pair Trading Analysis
The ability to find closely correlated positions to Parsons Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Parsons Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Parsons Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Parsons Corp to buy it.
The correlation of Parsons Corp is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Parsons Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Parsons Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Parsons Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Parsons Corp position
In addition to having Parsons Corp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Your Equity Center. To learn how to invest in Parsons Stock, please use our How to Invest in Parsons Corp guide.You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
To fully project Parsons Corp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Parsons Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Parsons Corp's income statement, its balance sheet, and the statement of cash flows.