ASGN (ASGN) AI Stock Analysis

• Market Cap: $2.22B
• Dividend Yield: N/A
• Average Volume (3M): 613.44K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.66
• Revenue Growth: -6.31%
• EPS Growth: -23.56%
• Country: US
• Employees: 3,200
• Sector: Technology
• Sector Strength: 94
• Industry: Information Technology Services
• EPS (TTM): 1.17
• Shares Outstanding: 43,800,000
• 10 Day Avg. Volume: 595,383
• 30 Day Avg. Volume: 613,443
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.51
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 2.89
• Enterprise Value/Ebitda: 13.12
• 1Y Price Target: $51.80
• Price Target Upside: 0.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 69 Neutral
• Price Target: $57.00 ▲(10.10% Upside)

ASGN's overall stock score reflects a stable financial position with strong cash flow, but challenges in revenue growth and profitability margins. Technical analysis shows mixed signals, and valuation is fair. The earnings call highlights both growth opportunities and challenges, while recent corporate events enhance financial flexibility. The score is driven by financial performance and technical analysis, with valuation and earnings call sentiment also contributing.

Positive Factors

Contract Awards

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

Earnings

ASGN's second-quarter results beat consensus on all fronts but most strongly on adjusted EPS.

Federal Spending

ASGN sees a double-digit increase in federal defense spending as a significant potential tailwind.

Negative Factors

Assignment Revenue

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

Commercial Segment

Near-term demand and revenue conversion for the commercial segment have weakened due to increased client caution over new IT spending.

Discretionary Spending

Macro uncertainty continues to impact discretionary spend, but demand for AI and technological transformation remains strong.

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 include temporary placements, permanent placements, and project-based consulting. The company earns fees from clients based on the services rendered, often charging hourly rates for temporary staffing and a percentage of the hired employee's salary for permanent placements. Additionally, ASGN has established significant partnerships with various organizations, allowing it to expand its service offerings and client base. The company also benefits from long-term contracts with government agencies, providing a stable revenue stream. Overall, ASGN's diverse portfolio and strategic partnerships contribute significantly to its earnings.

ASGN Financial Statement Overview

Summary

ASGN demonstrates a stable financial position with challenges in revenue and profit margins. The income statement shows declining revenue and profitability margins, while the balance sheet reflects a stable structure with moderate leverage. Strong cash flow generation provides a buffer against profitability pressures.

Income Statement

ASGN's income statement reveals a mixed financial performance. The company experienced a decline in revenue over the last year, with a negative revenue growth rate of approximately -12.6%. However, the company has maintained a reasonable gross profit margin of 28.8% in the TTM period. The net profit margin has decreased to 3.5% in the TTM, compared to 5.9% in 2023, indicating reduced profitability. The EBIT margin and EBITDA margin also show a downward trend, suggesting pressures on operating efficiency. Overall, while profitability margins are under pressure, the company remains operationally viable.

Balance Sheet

ASGN's balance sheet indicates a stable financial position with some concerns. The debt-to-equity ratio is approximately 0.66, showing a moderate level of leverage. The return on equity (ROE) has decreased to 7.7% in the TTM, down from 11.6% in 2023, reflecting declining profitability. The equity ratio stands at 49.2%, suggesting a balanced capital structure. While the company maintains adequate equity, the decline in ROE and steady debt levels warrant attention.

Cash Flow

ASGN's cash flow analysis shows strengths in cash generation capabilities. The free cash flow has been stable, with the TTM free cash flow almost unchanged from the previous year's figure. The operating cash flow to net income ratio is robust at 2.7, indicating strong cash conversion efficiency. However, the free cash flow to net income ratio has increased slightly to 2.5, suggesting improved cash flow relative to earnings. Overall, the cash flow position remains strong, supporting operational needs and financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.10B	4.45B	4.58B	4.01B	3.95B
Gross Profit	1.18B	1.28B	1.37B	1.14B	1.09B
EBITDA	400.70M	464.40M	500.90M	440.50M	370.90M
Net Income	175.20M	219.30M	268.10M	231.80M	200.30M
Balance Sheet
Total Assets	3.43B	3.54B	3.59B	3.50B	3.28B
Cash, Cash Equivalents and Short-Term Investments	205.20M	175.90M	70.30M	529.60M	274.40M
Total Debt	1.10B	1.11B	1.12B	1.10B	1.13B
Total Liabilities	1.65B	1.65B	1.68B	1.64B	1.69B
Stockholders Equity	1.78B	1.89B	1.90B	1.87B	1.59B
Cash Flow
Free Cash Flow	364.70M	417.00M	270.30M	159.00M	392.20M
Operating Cash Flow	400.00M	456.90M	307.80M	193.70M	424.80M
Investing Cash Flow	-35.30M	-40.50M	-510.00M	246.50M	-219.00M
Financing Cash Flow	-333.20M	-310.90M	-256.50M	-184.40M	-29.00M

ASGN Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.77
• 50DMA: Positive
• 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 Positive. The current price of 51.77 is above the 20-day moving average (MA) of 51.16, above the 50-day MA of 50.92, and below the 200-day MA of 68.60, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 52.90 is Neutral, neither overbought nor oversold. The STOCH value of 80.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASGN.

ASGN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WNS	79 Outperform	$3.21B	20.01	21.23%	―	1.94%	26.15%
EPAM	76 Outperform	$8.87B	22.71	11.36%	―	9.73%	-0.29%
EXLS	72 Outperform	$6.92B	29.31	24.70%	―	15.15%	34.33%
CNXC	70 Outperform	$3.08B	13.41	5.59%	2.76%	11.31%	-16.02%
ASGN	69 Neutral	$2.22B	16.44	7.71%	―	-6.31%	-23.56%
DXC	68 Neutral	$2.47B	6.68	12.60%	―	-4.93%	497.03%
Sector *	61 Neutral	$36.30B	7.30	-7.27%	1.97%	7.76%	-6.42%

ASGN Corporate Events

ASGN Secures $100 Million Incremental Term Loan Facility

On July 31, 2025, ASGN Incorporated entered into a Second Amendment to its Third Amended and Restated Credit Agreement, introducing an incremental term loan facility of $100 million. This amendment aims to enhance ASGN’s financial flexibility, allowing for strategic allocation of cash flows towards organic business investments, future acquisitions, and share buybacks.

The most recent analyst rating on (ASGN) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on ASGN stock, see the ASGN Stock Forecast page.

ASGN Stockholders Approve Amendments at Annual Meeting

At the 2025 Annual Meeting of Stockholders held on June 12, 2025, ASGN Incorporated’s stockholders approved amendments to the company’s 2010 Incentive Award Plan and Employee Stock Purchase Plan. The meeting also saw the election of four directors, approval of executive compensation, and ratification of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (ASGN) stock is a Hold with a $101.00 price target. To see the full list of analyst forecasts on ASGN stock, see the ASGN Stock Forecast page.