ParsonsPSN +2.06%86 3-Year ROIIC % is 28.18 as of Dec. 2025, which is 107% above its 10-year median of 13.60. GuruFocus rates PSN with a GF Score™ of 86/100 and a GF Value™ of $80.94 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,621 Software companies, Parsons ranks better than 73.48% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Parsons's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 28.18%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Parsons's 3-Year ROIIC % or its related term are showing as below:
PSN's 3-Year ROIIC % is ranked better than 73.48% of 2621
companies
in the Software industry
Industry Median: 5.24
vs PSN: 28.18
Parsons (NYSE:PSN) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Parsons 3-Year ROIIC % Related Terms
Parsons 3-Year ROIIC % Historical Data
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The historical data trend for Parsons's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Software Industry
For the Software industry and Technology sector, Parsons's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Parsons's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Parsons (PSN) has a 3-Year ROIIC % of 28.18 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Parsons and its competitors. This is 107% above median its historical median of 13.60. According to the industry distribution chart, Parsons ranks #695 out of 2621 companies in the Software industry, placing it in the top 26.5%.
Is Parsons' 3-Year ROIIC % too high?
Parsons' current 3-Year ROIIC % of 28.18 is 107% above median its 10-year median of 13.60. The Software industry median 3-Year ROIIC % is 5.24. Parsons' value of 28.18 is 437.8% above this industry median. Based on the distribution chart, Parsons ranks #695 out of 2621 companies in the Software industry, which is above the industry midpoint. Overall, Parsons has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Parsons' 3-Year ROIIC % compare to GDS and G?
According to the Software industry distribution chart, Parsons ranks #695 out of 2621 companies for 3-Year ROIIC %. This puts Parsons in the upper half of its industry. The industry median 3-Year ROIIC % is 5.24. Parsons' value of 28.18 is 437.8% above this benchmark. While the company's 10-year median is 13.60 vs. the industry median of 5.24, 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 3-Year ROIIC % for a Software company?
The median 3-Year ROIIC % among Software companies is 5.24, based on 2,621 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Parsons's current 3-Year ROIIC % of 28.18 is 437.8% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Parsons and its competitors. For the Software industry, the median 3-Year ROIIC % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Parsons's current 3-Year ROIIC % is 28.18, which is 107% above median its own 10-year median of 13.60. 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 Modestly Undervalued. The stock's GF Value™ is $80.94, compared to a current price of $57.45 — trading 29% below its estimated fair value. The current 3-Year ROIIC % is 28.18, which is 107% above median its 10-year median of 13.60 and 437.8% above the Software industry median of 5.24. Parsons' overall GF Score™ is 86/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Parsons (PSN), the current 3-Year ROIIC % is 28.18 as of Dec. 2025. 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 $57.45 is trading 29% below its estimated GF Value™ of $80.94.
GuruFocus considers Parsons to be Modestly Undervalued.
Key valuation signals for PSN:
3-Year ROIIC %: 28.18 (107% above median its 10-year median of 13.60)
GF Value™: $80.94 vs. price of $57.45 (29% below fair value)
Industry Position: 437.8% above the Software median (#695 of 2621)
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.
86GF Score
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