ASGN (ASGN) AI Stock Analysis

• Market Cap: $1.73B
• Dividend Yield: N/A
• Average Volume (3M): 666.83K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.79
• Revenue Growth: -4.86%
• EPS Growth: -25.15%
• Country: US
• Employees: 3,200
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 1.15
• Shares Outstanding: 42,700,000
• 10 Day Avg. Volume: 819,219
• 30 Day Avg. Volume: 666,828
• PEG Ratio: -0.57
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 7.26
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 2.54
• Enterprise Value/Ebitda: 6.37
• 1Y Price Target: $56.80
• Price Target Upside: 38.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 5.02
• Revenue Forecast (FY): $4.00B

• Rating: 61 Neutral
• Price Target: $44.00 ▲(7.21% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

Score is led by resilient cash generation and a broadly positive earnings-call outlook (consulting growth, record bookings, strong free cash flow and buybacks), partially offset by deteriorating multi-year revenue/margin trends and a notably weak technical picture with the stock below major moving averages.

Positive Factors

Strong free cash flow

Consistent, high free cash flow and solid operating cash flow provide durable financial flexibility. This supports repeatable buybacks, M&A funding (Quinox), and deleveraging capacity, enabling investment in higher‑margin consulting and platform builds without relying on equity issuance.

Shift to higher‑margin IT consulting

A structural mix shift toward higher‑value IT consulting and strong commercial bookings improves revenue quality and margin profile. Sustained commercial demand and a >1 book‑to‑bill indicate durable pipeline growth, supporting long‑term margin recovery and scalable consulting revenue.

Quinox acquisition expands offshore digital capacity

Quinox brings scaled offshore engineering, higher EBITDA margins and adjacencies in digital, AI and modernization. That expands delivery leverage, lowers blended delivery costs, and accelerates platform/AI capability adoption—structurally strengthening service offering and margin upside.

Negative Factors

Multi‑year revenue contraction

Three consecutive years of revenue decline signals structural demand or book mix headwinds that limit scale economies. Persistent top‑line pressure reduces leverage on fixed costs, constrains reinvestment capacity, and raises execution risk for margin recovery despite sector repositioning.

Margin compression and falling ROE

Declining margins and ROE reflect deteriorating profitability and weaker returns on shareholder capital. Lower profitability reduces internal funding for growth, increases sensitivity to cyclicality, and makes it harder to achieve target returns even as management pursues higher‑margin consulting.

Staffing and federal demand softness

Significant declines in assignment (staffing) and softer federal awards create structural revenue volatility. Reliance on contract timing and cyclic staffing demand reduces predictability of cash flows and margins, complicating planning and making recovery dependent on durable pickup in these end markets.

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

Mixed fundamentals: multi-year revenue contraction and weaker margins/ROE weigh on the income statement, but leverage appears manageable and cash generation/free cash flow remain a relative strength.

Income Statement

Revenue has contracted for three straight years (2023–2025), including a -12.3% decline in 2025, pointing to a tougher demand/backdrop. Profitability also weakened: gross margin slipped from ~29–30% (2022–2024) to ~27% (2025), and net margin fell to ~2.9% in 2025 from ~4.3% in 2024 and ~4.9% in 2023. The business remains profitable with positive operating and EBITDA margins, but the trajectory is clearly down versus prior years.

Balance Sheet

Leverage appears moderate and generally stable: total debt is roughly $1.10–$1.17B while equity is ~$1.78–$1.90B in recent years, implying manageable balance-sheet risk. However, returns on shareholder capital have trended lower (ROE down to ~6.3% in 2025 from ~9.9% in 2024 and ~11.6% in 2023), consistent with the earnings decline. Also note one reported debt-to-equity value is 0.0 in 2025, which looks inconsistent with the stated debt and equity and should be treated cautiously.

Cash Flow

Cash generation is a relative strength: operating cash flow was solid in 2025 (~$328M) and free cash flow remained high (~$288M). Despite lower earnings, free cash flow stayed close to reported profits (free cash flow to net income ~0.88 in 2025 and ~0.91 in 2023–2024), suggesting decent cash conversion. Volatility is the key downside—free cash flow growth swung from -12.5% (2024) to +169% (2025)—but the overall level of cash flow remains supportive.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.98B	4.10B	4.45B	4.58B	4.01B
Gross Profit	1.08B	1.18B	1.28B	1.37B	1.14B
EBITDA	343.80M	400.70M	464.40M	500.90M	440.50M
Net Income	113.50M	175.20M	219.30M	268.10M	409.90M
Balance Sheet
Total Assets	3.69B	3.43B	3.54B	3.59B	3.50B
Cash, Cash Equivalents and Short-Term Investments	102.30M	205.20M	175.90M	70.30M	529.60M
Total Debt	1.17B	1.10B	1.11B	1.12B	1.10B
Total Liabilities	1.88B	1.65B	1.65B	1.68B	1.64B
Stockholders Equity	1.80B	1.78B	1.89B	1.90B	1.87B
Cash Flow
Free Cash Flow	288.10M	364.70M	417.00M	270.30M	159.00M
Operating Cash Flow	327.90M	400.00M	456.90M	307.80M	193.70M
Investing Cash Flow	-343.90M	-35.30M	-40.50M	-510.00M	246.50M
Financing Cash Flow	-29.40M	-333.20M	-310.90M	-256.50M	-184.40M

ASGN Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 41.04 is below the 20-day moving average (MA) of 46.78, below the 50-day MA of 48.31, and below the 200-day MA of 49.26, indicating a bearish trend. The MACD of -2.23 indicates Positive momentum. The RSI at 35.80 is Neutral, neither overbought nor oversold. The STOCH value of 9.70 is Positive, 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
FORTY	75 Outperform	$1.79B	24.91	8.18%	0.80%	6.98%	-4.56%
GLOB	67 Neutral	$1.86B	19.69	4.91%	―	5.56%	-42.38%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ASGN	61 Neutral	$1.73B	15.76	6.34%	―	-4.86%	-25.15%
DXC	59 Neutral	$2.02B	5.18	13.79%	―	-4.13%	2143.48%
TASK	53 Neutral	$915.03M	12.15	15.40%	―	19.88%	51.03%
AI	47 Neutral	$1.42B	-3.64	-46.77%	―	1.84%	-27.74%

ASGN Corporate Events

ASGN to Acquire Quinnox in Strategic Digital Expansion

On January 20, 2026, ASGN announced a definitive agreement to acquire Quinnox Inc., a Chicago-founded digital solutions provider with operations in India and the UK, for $290 million in cash, with closing expected in March 2026 subject to customary antitrust approvals. The deal adds a scaled offshore digital engineering platform, strengthens ASGN’s AI, data, and application modernization capabilities, and broadens its reach across complementary industries including financial services, energy, retail, transportation, and manufacturing, with Quinnox contributing roughly $100 million in 2025 revenue, low-to-mid teens expected revenue growth in 2026, and Adjusted EBITDA margins in the low 20% range, and is projected to be accretive to ASGN’s adjusted earnings per share in the first full year after closing. ASGN also updated its outlook for the fourth quarter of 2025, expecting revenue and Adjusted EBITDA to land at the high end of prior guidance, highlighted robust free cash flow conversion above its 60–65% target, and underscored a balanced capital allocation strategy that combines strategic M&A like the Quinnox acquisition with an aggressive $1 billion share repurchase program, of which $972 million remained after buying back 1.4 million shares in the quarter.

The most recent analyst rating on (ASGN) stock is a Hold with a $50.00 price target. To see the full list of analyst forecasts on ASGN stock, see the ASGN Stock Forecast page.