Parsons’ returns on capital are not looking good for the business

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The company has a history of success, but its returns on capital have been declining in recent years. This is a cause for concern for shareholders, as it indicates that the company may be losing its competitive edge. While Parsons ($NYSE:PSN)’ current financial situation is not dire, it is something that the company will need to address in order to ensure long-term success.

Share Price

Parsons Corp‘s return on capital has been under scrutiny lately as media outlets have been reporting mostly negative news. On Friday, PARSONS CORP stock opened at $42.8 and closed at $43.4, up by 1.6% from previous closing price of 42.8. Some investors are still holding onto the stock in hopes that the company will improve its returns, but with the current situation, it is uncertain when or if that will happen.

VI Analysis

Parsons Corporation is a leading engineering, construction, and technical services firm with a strong reputation for delivering high-quality projects on time and on budget. The company’s fundamentals reflect its long term potential, and based on the VI Risk Rating, Parsons Corporation is a medium risk investment in terms of financial and business risk. However, the VI App has detected 2 risk warnings in the balance sheet and cash flow statement. Register on vi.app to check it out.

VI Peers

The company is a provider of engineering, construction, and technical services for public and private sector clients. Parsons delivers innovative solutions to complex infrastructure and programmatic challenges, and is a recognized leader in the planning, design, and construction of a wide range of facilities and infrastructure. The company’s competitors include Airtificial Intelligence Structures SA, Modern Engineering & Projects Ltd, GMR Power and Urban Infra Ltd.

– Airtificial Intelligence Structures SA ($OTCPK:AITLF)

Artificial Intelligence Structures SA, or AI Structures, is a publicly traded company on the Madrid Stock Exchange. As of 2022, AI Structures has a market capitalization of €69.19 million and a return on equity of -7.34%. The company focuses on the development and commercialization of artificial intelligence technology.

– Modern Engineering & Projects Ltd ($BSE:539762)

Modern Engineering & Projects Ltd is a company that specializes in engineering and construction projects. The company has a market cap of 73.54M as of 2022 and a Return on Equity of -2211.89%. Modern Engineering & Projects Ltd has a strong focus on quality and safety, and has a good reputation in the industry. The company has a wide range of experience in both small and large projects, and has a proven track record of successful completion.

– GMR Power and Urban Infra Ltd ($BSE:543490)

GMR Power and Urban Infra Ltd has a market cap of 15.21B as of 2022, a Return on Equity of -54.42%. The company is engaged in the business of power generation and transmission, and urban infrastructure development.

Summary

Parsons Corp is a US-based engineering, construction, and technical services firm. Parsons has a diversified business model with operations in multiple end markets. Parsons also has a sizeable presence in the transportation, water/wastewater, power, and oil & gas end markets. Parsons has a strong track record of executing large, complex projects.

The company has a diversified customer base, including government agencies, private companies, and international organizations. Investing in Parsons Corp can be a good way to gain exposure to the engineering and construction sector. The company has a strong history of delivering quality projects and is well-positioned to benefit from the continued global infrastructure spending.