Parsons Corporation cash flow to debt ratio of 34.60% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Parsons Corporation's free cash flow has decreased 13.49% from $474.39M last year to $410.41M, signaling decreasing performance

Parsons Corporation's debt to equity ratio is 0.62, which means that the company's assets are unhealthy financed, signaling financial risk.

Parsons Corporation's debt has increased relative to shareholder equity from 0.59 last year to 0.62 today, signaling weakened financials

Parsons Corporation has a net debt to EBITDA ratio of 1.66x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Parsons Corporation's interest coverage ratio of 5.18 indicates that earnings with good margin can cover interest payments on company debt

Parsons Corporation's profit margin has decreased (28.16%) in the last year from 3.48% to 2.50%, signaling decreasing performance

Parsons Corporation's short-term assets of $2.68B exceed its short-term liabilities of $1.53B

Parsons Corporation's return on assets of 2.58% is lower than the 5.00% threshold, indicating inefficient asset utilization

Parsons Corporation's return on equity of 6.01%, is lower than 15.00%, indicating bad performance

Parsons Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Parsons Corporation had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Parsons Corporation has positive free cash flow, indicating the company generates cash after capital expenditures

Parsons Corporation has a free cash flow yield of 8.33%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Parsons Corporation's yearly earnings has increased 2.59% since last year from $235.05M to $241.14M, signaling increasing performance

Parsons Corporation's yearly revenue has decreased 100.00% since last year from $6.75B to $100.00K, signaling decreasing performance

ROIC 5.39% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Parsons Corporation's 3-year revenue CAGR of 14.90% is positive, indicating growing revenue over the past 3 years

Parsons Corporation had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Parsons Corporation had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Parsons Corporation is undervalued relative to its fair value price of 58.53 based on Discounted Cash Flow model

Parsons Corporation has an earnings yield of 3.14%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Parsons Corporation is overvalued relative to its fair value price of 26.65 based on EBITDA multiple model

Parsons Corporation has an EV/EBITDA ratio of 10.62x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Parsons Corporation is undervalued relative to its fair value price of 61.77 based on Earnings Fair Value model

Parsons Corporation has a PEG-ratio over 1 which is considered overvalued

Parsons Corporation has a price-to-book ratio of 1.82x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Parsons Corporation has a price-to-sales ratio of 0.80x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue