ASGN (ASGN) AI Stock Analysis

• Market Cap: $2.19B
• Dividend Yield: N/A
• Average Volume (3M): 518.04K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.55
• Revenue Growth: -6.31%
• EPS Growth: -23.56%
• Country: US
• Employees: 3,200
• Sector: Technology
• Sector Strength: 86
• Industry: Information Technology Services
• EPS (TTM): 1.17
• Shares Outstanding: 43,800,000
• 10 Day Avg. Volume: 462,350
• 30 Day Avg. Volume: 518,038
• PEG Ratio: -1.87
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.79
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 5.51
• Enterprise Value/Ebitda: 4.74
• 1Y Price Target: $55.40
• Price Target Upside: -0.45% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 72 Outperform
• Price Target: $62.00 ▲(11.41%Upside)

ASGN's overall stock score reflects a stable financial position with strong cash flow generation but challenges in revenue growth. The technical analysis suggests short-term strength but potential long-term weakness, while the valuation is reasonable. The recent earnings call highlighted both growth opportunities in IT consulting and challenges in federal contract awards. The lack of notable corporate events means the score relies heavily on financial performance and earnings call insights.

Positive Factors

AI and Technological Transformation

Management continues to see significant demand opportunity related to AI.

Earnings

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

Federal Contracts

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.

Federal Contracting Process

Potential slowing of the procurement process for new government contracts could impact federal revenue trajectory.

Macro Uncertainty

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 is a leading provider of IT and professional services in the technology, digital, creative, engineering, and life sciences sectors. The company operates through its two primary segments: Commercial and Federal Government. ASGN offers a wide range of services including consulting, staffing, and project management, catering to the needs of its diverse clientele across various industries.

How the Company Makes Money

ASGN makes money primarily through its staffing and consulting services. The revenue model is based on providing IT and professional talent on a temporary, project-based, or permanent basis to clients in need of skilled professionals. The Commercial segment generates revenue by offering technology and creative solutions to commercial clients, while the Federal Government segment provides mission-critical solutions to the U.S. government. Key revenue streams include time-and-materials contracts, which are billed based on hours worked by consultants, and fixed-price contracts for specific projects. The company's earnings are significantly bolstered by strategic acquisitions and partnerships that enhance its service offerings and expand its market reach.

ASGN Financial Statement Overview

Summary

ASGN presents a stable financial profile with strong cash flow generation and manageable leverage levels. While the company demonstrates solid operational efficiency, revenue and profit growth have been under pressure. The balance sheet remains strong, though the return on equity could be improved. Overall, ASGN shows resilience with opportunities for growth and enhanced 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	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: 55.65
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 55.65 is above the 20-day moving average (MA) of 50.19, above the 50-day MA of 51.93, and below the 200-day MA of 72.11, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 65.06 is Neutral, neither overbought nor oversold. The STOCH value of 70.05 is Neutral, 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	78 Outperform	$3.20B	19.23	21.24%	―	1.94%	26.19%
CNXC	76 Outperform	$3.83B	17.02	5.59%	2.19%	11.31%	-16.02%
EPAM	74 Outperform	$9.69B	23.92	11.57%	―	4.72%	-3.06%
EXLS	73 Outperform	$6.96B	32.33	23.81%	―	14.18%	21.49%
ASGN	72 Outperform	$2.19B	15.88	7.71%	―	-6.31%	-23.56%
DXC	67 Neutral	$2.70B	7.04	12.88%	―	-5.82%	469.88%
Sector *	51 Neutral	AU$1.66B	2.46	-31.66%	3.59%	16.55%	-7.79%

ASGN Corporate Events

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.