ASGN (ASGN) AI Stock Analysis

• Market Cap: $1.93B
• Dividend Yield: N/A
• Average Volume (3M): 664.89K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.68
• Revenue Growth: -4.86%
• EPS Growth: -25.15%
• Country: US
• Employees: 3,200
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 1.31
• Shares Outstanding: 42,700,000
• 10 Day Avg. Volume: 664,493
• 30 Day Avg. Volume: 664,887
• PEG Ratio: -1.48
• Price to Book (P/B): 2.12
• Price to Sales (P/S): 0.92
• P/FCF Ratio: 10.33
• Enterprise Value/Market Cap: 1.65
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 2.76
• Enterprise Value/Ebitda: 7.44
• 1Y Price Target: $48.25
• Price Target Upside: 6.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 4.56
• Revenue Forecast (FY): $3.97B

• Rating: 66 Neutral
• Price Target: $49.00 ▲(8.22% Upside)

ASGN's overall stock score reflects a company facing financial challenges with declining revenue and profitability, but with potential growth opportunities in IT consulting and AI. The technical analysis suggests caution, while the valuation remains reasonable. The earnings call provided a balanced outlook with both strengths and risks.

Positive Factors

IT Consulting Growth

The strong performance in IT consulting indicates a robust demand for ASGN's services, positioning the company well for sustained growth in this sector.

Federal Segment Strength

The strong bookings in the federal segment suggest a stable revenue stream and potential for future growth, enhancing ASGN's market position.

AI and Digital Transformation

The focus on AI and digital transformation projects positions ASGN to capitalize on industry trends, driving long-term growth and innovation.

Negative Factors

Revenue Decline

The decline in revenue indicates challenges in maintaining sales momentum, which could impact ASGN's ability to sustain growth.

Assignment Revenue Decrease

The significant drop in assignment revenues reflects vulnerabilities to economic cycles, potentially affecting ASGN's financial stability.

Free Cash Flow Decline

The decline in free cash flow growth raises concerns about ASGN's liquidity and its ability to fund operations and growth initiatives.

ASGN Business Overview & Revenue Model

Company Description

ASGN Incorporated provides information technology services and professional solutions in the technology, digital, and creative fields for commercial and government sectors in the United States. It operates through two segments: Commercial and Federal Government. The Commercial Segment provides consulting, creative digital marketing, and permanent placement services primarily to Fortune 1000 and mid-market clients. This segment also offers workforce mobilization, modern enterprise, and digital innovation IT consulting services; and cloud, data and analytics, and digital transformation solutions. The Federal Government Segment provides mission-critical solutions to the department of defense, intelligence agencies, and civilian agencies. This segment offers cloud, cybersecurity, artificial intelligence, machine learning, application and IT modernization, and science and engineering solutions. The company was formerly known as On Assignment, Inc. and changed its name to ASGN Incorporated in April 2018. ASGN Incorporated was incorporated in 1985 and is based in Glen Allen, Virginia.

How the Company Makes Money

ASGN generates revenue primarily through its staffing and consulting services, which are billed on a time-and-materials basis or through fixed-fee contracts. The company earns fees from placing skilled professionals in temporary, contract, and permanent positions across multiple sectors, with a significant focus on IT and creative talent. Key revenue streams include billable hours worked by consultants and the placement fees for permanent hires. Additionally, ASGN benefits from long-term contracts with government agencies and private sector clients, which provide stable income. Partnerships with technology firms and other service providers further enhance ASGN's capabilities, enabling the company to offer comprehensive solutions and drive additional revenue growth.

ASGN Financial Statement Overview

Summary

ASGN's financial performance is challenged by declining revenue and profitability, with a negative revenue growth rate of -48.9% TTM and reduced net profit margin at 3.3% TTM. The balance sheet shows manageable leverage but declining ROE, and cash flow concerns with a -19.7% TTM decline in free cash flow growth.

Income Statement

ASGN's income statement shows a declining revenue trend with a negative revenue growth rate of -48.9% TTM, indicating potential challenges in maintaining sales momentum. The gross profit margin remains stable around 28.9%, but the net profit margin has decreased to 3.3% TTM, reflecting reduced profitability. EBIT and EBITDA margins have also declined, suggesting operational inefficiencies. Overall, the income statement reflects moderate financial health with concerns about revenue and profit declines.

Balance Sheet

The balance sheet indicates a moderate debt-to-equity ratio of 0.64 TTM, showing manageable leverage. Return on equity has decreased to 7.2% TTM, which is lower than previous years, indicating reduced efficiency in generating profits from equity. The equity ratio stands at 49.5% TTM, suggesting a stable capital structure. While the balance sheet remains relatively strong, the declining ROE is a concern.

Cash Flow

ASGN's cash flow statement shows a decline in free cash flow growth by -19.7% TTM, indicating potential cash generation issues. The operating cash flow to net income ratio is not available TTM, but the free cash flow to net income ratio is healthy at 87%. Despite a strong free cash flow to net income ratio, the negative growth in free cash flow raises concerns about future liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.99B	4.10B	4.45B	4.58B	4.01B	3.50B
Gross Profit	1.15B	1.18B	1.28B	1.37B	1.14B	947.20M
EBITDA	428.00M	400.70M	464.40M	500.90M	440.50M	370.90M
Net Income	130.70M	175.20M	219.30M	268.10M	409.90M	200.30M
Balance Sheet
Total Assets	3.70B	3.43B	3.54B	3.59B	3.50B	3.28B
Cash, Cash Equivalents and Short-Term Investments	83.90M	205.20M	175.90M	70.30M	529.60M	274.40M
Total Debt	1.17B	1.10B	1.11B	1.12B	1.10B	1.11B
Total Liabilities	1.87B	1.65B	1.65B	1.68B	1.64B	1.69B
Stockholders Equity	1.83B	1.78B	1.89B	1.90B	1.87B	1.59B
Cash Flow
Free Cash Flow	283.30M	364.70M	417.00M	270.30M	159.00M	392.20M
Operating Cash Flow	325.80M	400.00M	456.90M	307.80M	193.70M	424.80M
Investing Cash Flow	-348.60M	-35.30M	-40.50M	-510.00M	246.50M	-219.00M
Financing Cash Flow	-17.80M	-333.20M	-310.90M	-256.50M	-184.40M	-29.00M

ASGN Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 45.28
• 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 Neutral. The current price of 45.28 is above the 20-day moving average (MA) of 43.62, below the 50-day MA of 45.93, and below the 200-day MA of 53.83, indicating a neutral trend. The MACD of -0.65 indicates Negative momentum. The RSI at 53.50 is Neutral, neither overbought nor oversold. The STOCH value of 83.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ASGN.

ASGN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FORTY	76 Outperform	$2.28B	28.77	8.18%	1.18%	7.26%	-4.34%
GLOB	67 Neutral	$2.77B	27.85	4.91%	―	5.56%	-42.38%
ASGN	66 Neutral	$1.93B	15.27	7.25%	―	-4.86%	-25.15%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TASK	59 Neutral	$1.03B	13.00	15.40%	―	19.88%	51.03%
DXC	58 Neutral	$2.28B	6.48	12.33%	―	-4.13%	2143.48%
AI	45 Neutral	$1.95B	―	-40.94%	―	14.34%	-13.27%

ASGN Corporate Events

ASGN’s Earnings Call: Mixed Sentiment and Growth Prospects

The recent earnings call for ASGN Incorporated presented a mixed sentiment, highlighting both strong performances and notable challenges. While the company reported solid outcomes in IT consulting and healthcare sectors, concerns were raised regarding revenue declines and the potential impact of a government shutdown. The outlook remains balanced, with growth prospects tempered by existing challenges.

ASGN Incorporated Reports Strong Q3 2025 Results

ASGN Incorporated is a prominent provider of IT services and solutions, catering to both commercial and government sectors, with a focus on developing and implementing critical IT and business solutions.

ASGN Updates Bylaws for Enhanced Governance

On September 18, 2025, ASGN Incorporated’s Board of Directors approved amendments to the company’s bylaws. These changes enhance procedural mechanics and disclosure requirements for stockholder nominations and proposals, update provisions for special meetings, clarify resignation procedures, and update indemnification obligations, among other modernizing adjustments.

The most recent analyst rating on (ASGN) stock is a Buy with a $57.00 price target. To see the full list of analyst forecasts on ASGN stock, see the ASGN Stock Forecast page.