Does Parsons Corporation have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores Parsons Corporation (PSN) 43.4 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 40, returns on capital 18, balance-sheet safety 51, capital discipline 80.

Is PSN stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 4% assumed growth, capped at 4%), estimated intrinsic value is $77.23 per share versus a recent price of $56.05 — 27% below value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has PSN's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 43.4 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

Parsons Corporation

PSN · Technology · $3.1B mkt cap · FY2025 filings · Shallow moat ·

On the watchlist

Shallow moat

The four filters

Pricing power40

Median gross margin 22.2% over 9y, very stable.

Returns on capital18

Median ROIC 6.8%, above the 9% hurdle in 29% of years.

Balance-sheet safety51

Net debt/EBITDA 1.4x, interest coverage 8x.

Capital discipline80

Owner earnings +13.6%/yr, share count n/a.

Margin of safety

Above valueOn sale

27% below value

Owner earnings (normalized): $240.7M
Est. intrinsic value / share: $77.23
Recent price: $56.05
Discount to value: 27% below value

Conservative model: 9% discount rate, 4% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

10 years of fundamentals

The business, in plain English

Parsons Corporation booked $6.4B of revenue in FY2025 in the Technology sector and kept 22.5% of it as gross profit — a moderate-margin business by that measure. After every other cost, 3.8% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $3.0B (FY2017) to $6.4B (FY2025) — about 9.8% a year compounded over 8 years.

It earned 9.9% on invested capital in FY2025, with a median of 6.8% across 7 filed years. The Returns on Capital filter above scores it 18/100.

The balance sheet carried $1.2B of total debt in FY2025 against $289.7M of owner earnings — roughly 4.3 years of owner earnings to retire it all. Balance-Sheet Safety scores it 51/100.

Put together: Capital Discipline is the strongest of the four filters (80/100) and Returns on Capital the weakest (18/100), which is how PSN lands at 43/100 — a Shallow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$6.4B FY2025

Gross marginRevenue kept after cost of goods22.5% FY2025

Return on invested capitalOperating profit on the capital employed9.9% FY2025

Owner earningsCash an owner could take out$289.7M FY2025

Gaps in a line mean that item isn’t in PSN’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale43.4 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — PSN has read Shallow moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Technology context

#271 of 532 scored Technology companies, ranked by Moat Score.

Nearest peers by Moat Score

#269HUBS HUBSPOT INC43.5 out of 100, Shallow moatShallow moat
#270NXTT NEXT TECHNOLOGY HOLDING INC.43.5 out of 100, Shallow moatShallow moat
#272MRAM Everspin Technologies, Inc.43.4 out of 100, Shallow moatShallow moat
#273GUER Guerrilla RF, Inc.43.4 out of 100, Shallow moatShallow moat

Compare PSN with its nearest peers →All Technology companies on the Index →

Common questions about PSN

Does Parsons Corporation have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores Parsons Corporation (PSN) 43.4 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 40, returns on capital 18, balance-sheet safety 51, capital discipline 80.
Is PSN stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 4% assumed growth, capped at 4%), estimated intrinsic value is $77.23 per share versus a recent price of $56.05 — 27% below value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has PSN's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 43.4 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell PSN. See the disclaimer.