ASGN Incorporated
ASGN Incorporated Fundamental Analysis
ASGN Incorporated (ASGN) shows weak financial fundamentals with a PE ratio of 16.87, profit margin of 2.85%, and ROE of 6.26%. The company generates $4.1B in annual revenue with weak year-over-year growth of -7.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 24.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ASGN's fundamental strength across five key dimensions:
Efficiency Score
WeakASGN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentASGN trades at attractive valuation levels.
Growth Score
WeakASGN faces weak or negative growth trends.
Financial Health Score
ModerateASGN shows balanced financial health with some risks.
Profitability Score
WeakASGN struggles to sustain strong margins.
Key Financial Metrics
Is ASGN Expensive or Cheap?
P/E Ratio
ASGN trades at 16.87 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ASGN's PEG of -1.36 indicates potential undervaluation.
Price to Book
The market values ASGN Incorporated at 1.06 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.19 times EBITDA. This is generally considered low.
How Well Does ASGN Make Money?
Net Profit Margin
For every $100 in sales, ASGN Incorporated keeps $2.85 as profit after all expenses.
Operating Margin
Core operations generate 6.05 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.26 in profit for every $100 of shareholder equity.
ROA
ASGN Incorporated generates $3.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ASGN Incorporated generates limited operating cash flow of $336.56M, signaling weaker underlying cash strength.
Free Cash Flow
ASGN Incorporated produces free cash flow of $292.65M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $6.68 in free cash annually.
FCF Yield
ASGN converts 14.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.65
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How ASGN Stacks Against Its Sector Peers
| Metric | ASGN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.87 | 35.19 | Better (Cheaper) |
| ROE | 6.26% | 1155.00% | Weak |
| Net Margin | 2.85% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.65 | 0.41 | Weak (High Leverage) |
| Current Ratio | 0.00 | 4.71 | Weak Liquidity |
| ROA | 3.08% | -314918.00% (disorted) | Weak |
ASGN outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ASGN Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
22.05%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
17.15%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
49.19%
Industry Style: Growth, Innovation, High Beta
High Growth