Operating Margin

Watchlist Manager

Watchlist

Price: 70.51 USD -1.67% Market Closed

Market Cap: $7.5B

9.3%

Improving

by 2.8%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

9.3%

Operating Income

$603.7m

Revenue

$6.5B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

9.3%

Operating Income

$603.7m

Revenue

$6.5B

Peer Comparison

Country	Company	Market Cap	Operating Margin
US	Parsons Corp NYSE:PSN	7.5B USD	Loading...
US	RTX Corp LSE:0R2N	267.3B USD	Loading...
US	Raytheon Technologies Corp NYSE:RTX	267.3B USD	Loading...
US	Boeing Co NYSE:BA	185.4B USD	Loading...
NL	Airbus SE PAR:AIR	153.2B EUR	Loading...
FR	Safran SA PAR:SAF	126.5B EUR	Loading...
US	Lockheed Martin Corp NYSE:LMT	144.7B USD	Loading...
UK	Rolls-Royce Holdings PLC LSE:RR	102.4B GBP	Loading...
DE	Rheinmetall AG XETRA:RHM	82.1B EUR	Loading...
US	Northrop Grumman Corp NYSE:NOC	98.4B USD	Loading...
US	General Dynamics Corp NYSE:GD	94.2B USD	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

Parsons Corp
Glance View

Economic Moat

None

Market Cap

7.5B USD

Industry

Aerospace & Defense

Parsons Corporation, an established name in the consulting and engineering services sector, began its journey in the mid-20th century, evolving from a regional player to a global powerhouse. Headquartered in Centreville, Virginia, the company is a testament to adept diversification, primarily focusing on defense, intelligence, and critical infrastructure. Over the decades, Parsons has pivoted to address the burgeoning needs of cybersecurity, intelligent network solutions, and cutting-edge technological systems. The critical lens through which Parsons operates is one that combines traditional engineering practices with high-tech, systems-based solutions to cater to the dynamic needs of both government and commercial clients. At its core, Parsons makes money by strategically blending traditional engineering expertise with advanced technological solutions. This dual focus allows it to capture a broad spectrum of projects - from designing and constructing infrastructure like bridges and tunnels to providing intricate cyber defense systems and threat detection for national security. The company's revenue streams are bolstered by long-term contracts with governmental bodies, ensuring a stable cash flow. Meanwhile, its investments in tech innovations secure its position in competitive markets. By bridging engineering with technology, Parsons not only adapts to changing market demands but also anticipates future challenges, ensuring its longevity and relevance in a rapidly evolving world.

View PSN Analysis

PSN Intrinsic Value

Show

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Parsons Corp
NYSE:PSN

Peer Comparison

Market Distribution

Other Profitability Ratios

Parsons Corp
Glance View

See Also

Company

Help

Tools

Stocks

52 Week Range	55.35 89.29
Price Target

Parsons Corp NYSE:PSN