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ParsonsPSN +0.06%80 FCF Margin % is 2.63% as of Jun. 2026, which is 59% below its 10-year median of 6.48. GuruFocus rates PSN with a GF Score™ of 80/100 and a GF Value™ of $80.46 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,816 Software companies, Parsons ranks better than 56.71% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. Parsons's Free Cash Flow for the
three
months ended in Jun. 2026 was $41 Mil. Parsons's Revenue for the
three
months ended in Jun. 2026 was $1,576 Mil. Therefore, Parsons's FCF Margin % for the quarter that ended in Jun. 2026 was 2.63%.
The historical data trend for Parsons's FCF Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Information Technology Services subindustry, Parsons's FCF Margin %, along with its competitors' market caps and FCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Parsons FCF Margin % vs Software Industry
For the Software industry and Technology sector, Parsons's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Parsons's FCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Parsons (PSN) has a FCF Margin % of 2.63% as of Jun. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Parsons and its competitors. This is 59% below median its historical median of 6.48. Over the past decade, Parsons' FCF Margin % has ranged from 3.86 to 7.86. According to the industry distribution chart, Parsons ranks #1219 out of 2816 companies in the Software industry, placing it in the top 43.3%.
Is Parsons' FCF Margin % too high?
Parsons' current FCF Margin % of 2.63% is 59% below median its 10-year median of 6.48. Over the past 10 years, this metric has ranged from a low of 3.86 to a high of 7.86. The Software industry median FCF Margin % is 2.24. Parsons' value of 2.63% is 17.7% above this industry median. Based on the distribution chart, Parsons ranks #1219 out of 2816 companies in the Software industry, which is above the industry midpoint. Overall, Parsons has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Parsons' FCF Margin % compare to GDS and INGM?
According to the Software industry distribution chart, Parsons ranks #1219 out of 2816 companies for FCF Margin %. This puts Parsons in the upper half of its industry. The industry median FCF Margin % is 2.24. Parsons' value of 2.63% is 17.7% above this benchmark. Historically, Parsons' own FCF Margin % has ranged from 3.86 to 7.86 over the past decade. While the company's 10-year median is 6.48 vs. the industry median of 2.24, Parsons has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for a Software company?
The median FCF Margin % among Software companies is 2.24, based on 2,816 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Parsons's current FCF Margin % of 2.63% is 17.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Parsons and its competitors. For the Software industry, the median FCF Margin % is 2.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Parsons's current FCF Margin % is 2.63%, which is 59% below median its own 10-year median of 6.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Parsons stock overvalued right now?
Based on GuruFocus' analysis, Parsons (PSN) is currently considered Significantly Undervalued. The stock's GF Value™ is $80.46, compared to a current price of $48.28 — trading 40% below its estimated fair value. The current FCF Margin % is 2.63%, which is 59% below median its 10-year median of 6.48 and 17.7% above the Software industry median of 2.24. Parsons' overall GF Score™ is 80/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Parsons (PSN), the current FCF Margin % is 2.63% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Parsons (PSN) Overvalued in 2026?
Based on GuruFocus' analysis, Parsons stock appears to be undervalued.
The current stock price of $48.28 is trading 40% below its estimated GF Value™ of $80.46.
GuruFocus considers Parsons to be Significantly Undervalued.
Key valuation signals for PSN:
FCF Margin %: 2.63% (59% below median its 10-year median of 6.48)
GF Value™: $80.46 vs. price of $48.28 (40% below fair value)
Industry Position: 17.7% above the Software median (#1219 of 2816)
No single metric tells the full story. See the PSN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Parsons Corp is a provider of technology-driven solutions in the defense, intelligence, and critical infrastructure markets. The business activities of the group are carried out through Federal Solutions and Critical Infrastructure segments. The Federal Solutions segment is a high-end service and technology provider to the U.S. government, delivering timely, cost-effective solutions for mission-critical projects, whereas the Critical Infrastructure segment provides integrated design and engineering services for complex physical and digital infrastructure around the globe. The company derives maximum revenue from Federal Solutions segment. Geographically, the company derives revenue from North America; Middle East; and Rest of the World, of which North America derives maximum revenue.
80GF Score
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