ASGN (ASGN) AI Stock Analysis

• Market Cap: $2.49B
• Dividend Yield: N/A
• Average Volume (3M): 581.20K
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.57
• Revenue Growth: -8.05%
• EPS Growth: -18.60%
• Country: US
• Employees: 3,200
• Sector: Technology
• Sector Strength: 77
• Industry: Information Technology Services
• EPS (TTM): 0.92
• Shares Outstanding: 43,800,000
• 10 Day Avg. Volume: 629,494
• 30 Day Avg. Volume: 581,199
• PEG Ratio: -1.72
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.19
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $59.00
• Price Target Upside: 7.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

ASGN's overall stock score of 66 reflects a stable financial position with solid cash flow management but challenges in revenue growth and market sentiment. While the company's valuation is reasonable, technical indicators suggest caution. Positive developments in IT consulting and strategic acquisitions provide growth opportunities, but macroeconomic headwinds remain a concern.

Positive Factors

Acquisition Performance

TopBloc, which was acquired in March, is performing better than management had initially expected.

Consulting Revenue Growth

Consulting growth accelerated to 6% y/y with a positive inflection in bookings.

Federal Segment Performance

The federal segment outperformed expectations with strong new contract awards and book-to-bill ratios.

Negative Factors

Assignment Revenue Decline

Assignment revenue continues its declines; DOGE still a risk factor; downgrading to HOLD.

Commercial Revenue Decline

Commercial revenues fell 8% y/y, with 15% declines in Assignment.

Federal Revenue Concerns

Federal government revenues fell 10% y/y, worse than expected, from lower-than-anticipated software licensing.

ASGN Business Overview & Revenue Model

Company Description

ASGN Incorporated is a prominent provider of IT and professional services in North America, catering to a wide array of industries including technology, healthcare, and government sectors. The company specializes in delivering highly skilled professionals for both temporary and permanent positions, as well as offering comprehensive IT solutions and services. ASGN operates through its key segments: Commercial and Federal, provisioning clients with tailored workforce solutions and cutting-edge technological expertise.

How the Company Makes Money

ASGN makes money primarily through its staffing and IT services. In the Commercial segment, the company generates revenue by placing skilled professionals in temporary, contract, and permanent roles across various industries. The Federal segment focuses on providing IT services and solutions to government clients, including cybersecurity, cloud computing, and digital transformation services. ASGN's revenue model is driven by billing clients for the professional services and solutions provided, often based on hourly rates, project-based fees, or fixed-price contracts. Key factors contributing to ASGN's earnings include its ability to attract and retain top talent, maintain strong client relationships, and adapt to evolving industry demands.

ASGN Financial Statement Overview

Summary

ASGN presents a stable financial profile with strong cash flow management and manageable leverage levels. The company's operational efficiency is decent, but recent revenue and profit growth pressures are concerning. The balance sheet is strong, although the return on equity is below industry averages, indicating potential for improved profitability.

Income Statement

ASGN's income statement reveals a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin stands at 28.56%, indicating strong cost management. However, the revenue growth has been negative recently, dropping by 10.61% from 2024 to 2025, which is a concern. The net profit margin for the same period is 3.93%, which is modest. Additionally, the EBIT and EBITDA margins are at 6.97% and 9.39%, respectively, showing a decent operational efficiency but highlighting room for improvement in profitability.

Balance Sheet

ASGN's balance sheet highlights a stable financial position with a debt-to-equity ratio of 0.72, indicating a balanced leverage level. The equity ratio is 48.48%, showing a healthy proportion of equity financing relative to total assets. However, the return on equity (ROE) is at 8.81%, which is below industry averages, suggesting that the company could generate higher returns on its equity base.

Cash Flow

ASGN's cash flow statement is strong, with a positive operating cash flow to net income ratio of 2.17, indicating solid cash generation from operations. The free cash flow to net income ratio is 2.17, reflecting efficient conversion of profits to cash flow. Although the free cash flow has decreased by 6.01% from the previous year, the overall cash flow management remains robust.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.02B	4.10B	4.45B	4.58B	4.01B	3.95B
	Gross Profit
1.15B	1.18B	1.28B	1.37B	1.14B	1.09B
	EBIT
280.10M	304.40M	364.10M	409.50M	350.90M	310.40M
	EBITDA
377.40M	400.70M	464.40M	500.90M	440.50M	370.90M
	Net Income Common Stockholders
158.00M	175.20M	219.30M	268.10M	231.80M	200.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
158.40M	205.20M	175.90M	70.30M	529.60M	274.40M
	Total Assets
3.49B	3.43B	3.54B	3.59B	3.50B	3.28B
	Total Debt
1.10B	1.10B	1.11B	1.12B	1.10B	1.13B
	Net Debt
945.20M	894.70M	929.30M	1.05B	567.80M	851.30M
	Total Liabilities
1.63B	1.65B	1.65B	1.68B	1.64B	1.69B
	Stockholders Equity
1.86B	1.78B	1.89B	1.90B	1.87B	1.59B
Cash Flow		Free Cash Flow
332.80M	364.70M	417.00M	270.30M	159.00M	392.20M
	Operating Cash Flow
343.50M	400.00M	456.90M	307.80M	193.70M	424.80M
	Investing Cash Flow
-340.80M	-35.30M	-40.50M	-510.00M	246.50M	-219.00M
	Financing Cash Flow
-52.00M	-333.20M	-310.90M	-256.50M	-184.40M	-29.00M

ASGN Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 55.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASGN, the sentiment is Negative. The current price of 55.02 is above the 20-day moving average (MA) of 54.73, below the 50-day MA of 60.67, and below the 200-day MA of 81.97, indicating a neutral trend. The MACD of -1.45 indicates Negative momentum. The RSI at 50.16 is Neutral, neither overbought nor oversold. The STOCH value of 88.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASGN.

ASGN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXLS	74 Outperform	$7.62B	34.47	23.81%	―	14.18%	21.49%
CNXC	74 Outperform	$3.52B	13.81	6.34%	2.36%	21.67%	-17.91%
WNS	72 Outperform	$2.53B	13.98	21.21%	―	-0.64%	30.96%
EPAM	71 Outperform	$10.59B	25.78	11.57%	―	4.72%	-3.06%
ASGN	66 Neutral	$2.49B	15.69	8.65%	―	-8.05%	-18.60%
Sector *	60 Neutral	$11.60B	10.64	-6.04%	2.94%	7.87%	-11.74%
DXC	46 Neutral	$3.07B	267.98	-2.46%	―	-5.65%	78.20%

ASGN Corporate Events

ASGN Acquires TopBloc, Enhancing ERP Capabilities

On March 4, 2025, ASGN Incorporated announced the successful acquisition of TopBloc, LLC for $340 million in cash and equity, integrating TopBloc’s team into ASGN’s Consulting Services. This strategic move enhances ASGN’s capabilities in the ERP and Workday marketplace, aligning with in-demand solutions and technology partners. Additionally, Shiv Iyer officially assumed the role of President, succeeding Rand Blazer, who transitioned to Executive Vice Chairman. Iyer’s extensive consulting experience, particularly his leadership at Accenture, is expected to contribute to ASGN’s strategic initiatives and seamless leadership transition.