ASGN (ASGN) AI Stock Analysis

• Market Cap: $2.32B
• Dividend Yield: N/A
• Average Volume (3M): 562.60K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.65
• Revenue Growth: -6.31%
• EPS Growth: -23.56%
• Country: US
• Employees: 3,200
• Sector: Technology
• Sector Strength: 81
• Industry: Information Technology Services
• EPS (TTM): 1.17
• Shares Outstanding: 43,800,000
• 10 Day Avg. Volume: 463,003
• 30 Day Avg. Volume: 562,602
• 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: 1.44
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 2.89
• Enterprise Value/Ebitda: 9.20
• 1Y Price Target: $50.50
• Price Target Upside: -3.68% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 70 Outperform
• Price Target: $58.00 ▲(10.62% Upside)

ASGN's overall stock score reflects a stable financial position with strong cash flow generation, balanced by challenges in revenue growth and profitability margins. Technical analysis shows mixed signals, while the valuation is reasonable. The earnings call sentiment is neutral, and recent corporate events positively impact financial flexibility.

Positive Factors

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

Macro Uncertainty

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

Revenue Decline

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

ASGN Business Overview & Revenue Model

Company Description

ASGN Incorporated is a leading provider of technology and workforce solutions in the United States. Operating primarily in the IT and professional services sectors, ASGN offers a range of services including staffing, consulting, and managed services. The company serves diverse industries such as government, healthcare, and commercial sectors, leveraging its expertise to deliver innovative solutions that address complex business challenges.

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's financial performance shows a stable position with challenges in revenue and profit margins. The income statement indicates declining revenue and profitability margins, while the balance sheet reflects a stable financial structure with moderate leverage. The cash flow statement is a highlight, showcasing strong cash generation and conversion efficiency.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.00B	4.10B	4.45B	4.58B	4.01B	3.95B
Gross Profit	1.16B	1.18B	1.28B	1.37B	1.14B	1.09B
EBITDA	363.40M	400.70M	464.40M	500.90M	440.50M	370.90M
Net Income	140.10M	175.20M	219.30M	268.10M	231.80M	200.30M
Balance Sheet
Total Assets	3.71B	3.43B	3.54B	3.59B	3.50B	3.28B
Cash, Cash Equivalents and Short-Term Investments	138.90M	205.20M	175.90M	70.30M	529.60M	274.40M
Total Debt	1.21B	1.10B	1.11B	1.12B	1.10B	1.13B
Total Liabilities	1.89B	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	353.00M	364.70M	417.00M	270.30M	159.00M	392.20M
Operating Cash Flow	377.70M	400.00M	456.90M	307.80M	193.70M	424.80M
Investing Cash Flow	-344.70M	-35.30M	-40.50M	-510.00M	246.50M	-219.00M
Financing Cash Flow	-26.20M	-333.20M	-310.90M	-256.50M	-184.40M	-29.00M

ASGN Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 52.43
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 52.43 is above the 20-day moving average (MA) of 52.40, above the 50-day MA of 51.35, and below the 200-day MA of 65.47, indicating a neutral trend. The MACD of 0.52 indicates Positive momentum. The RSI at 50.51 is Neutral, neither overbought nor oversold. The STOCH value of 32.91 is Neutral, 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	76 Outperform	$2.06B	26.72	11.46%	1.43%	9.16%	16.38%
DXC	71 Outperform	$2.65B	7.21	12.60%	―	-4.93%	497.03%
ASGN	70 Outperform	$2.32B	16.85	7.71%	―	-6.31%	-23.56%
TASK	70 Outperform	$1.63B	26.95	12.49%	―	19.04%	24.49%
GLOB	69 Neutral	$2.78B	25.03	5.66%	―	8.66%	-35.78%
Sector *	61 Neutral	$35.56B	8.62	-10.46%	1.86%	8.47%	-8.26%
AI	43 Neutral	$2.10B	―	-40.94%	―	14.34%	-13.27%

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.

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.