ASGN (ASGN) AI Stock Analysis

• Market Cap: $2.16B
• Dividend Yield: N/A
• Average Volume (3M): 599.88K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.70
• 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: 656,207
• 30 Day Avg. Volume: 599,885
• 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: 1.52
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 2.85
• Enterprise Value/Ebitda: 7.68
• 1Y Price Target: $55.33
• Price Target Upside: 12.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $53.00 ▲(7.48% Upside)

ASGN scores as a balanced setup: financial performance is the key limiter due to declining revenue, compressed profitability, and negative free cash flow growth, despite a stable balance sheet. Offsetting this, the earnings call and recent acquisition/buyback news are supportive, while technicals and valuation look broadly neutral to modestly favorable.

Positive Factors

Balance-sheet strength

ASGN's moderate leverage and roughly 50% equity ratio provide durable financial flexibility. Manageable debt levels reduce refinancing and solvency risk through cycles, enabling the company to fund M&A, strategic investments, and buybacks without unduly stressing the capital structure over the next several quarters.

IT consulting market position

A dominant and growing IT consulting mix positions ASGN in secular digital transformation demand—AI, application development, cybersecurity—which typically have higher recurring project spend. This structural exposure supports steadier contractual demand and cross-sell opportunities versus purely transactional staffing models over the medium term.

Strategic M&A expands capabilities

The Quinnox deal adds a scaled offshore digital engineering platform, accelerating ASGN's AI/data and modernization capabilities while adding immediate revenue and low-20% adjusted EBITDA margin potential. This strengthens delivery footprint and margin mix, supporting durable competitive differentiation and revenue diversification.

Negative Factors

Sustained revenue decline

A near-50% TTM revenue decline is a structural red flag: it reduces operating scale, weakens pricing leverage, and limits reinvestment capacity. If persistent, shrinking top-line undermines margin recovery plans and makes achievement of multi-year growth targets and cash generation projections more challenging.

Compressed profitability

Material margin compression points to mix shifts, pricing pressure, or rising operating costs that impair sustainable profitability. Low net and falling operating margins diminish free cash flow potential, constrain capital allocation choices, and increase the sensitivity of returns to modest revenue volatility over the coming quarters.

Weak free cash flow growth

Negative FCF growth despite healthy conversion indicates slowing cash generation or working-capital strain. Continued declines in free cash flow would limit the firm's ability to self-fund acquisitions, sustain buybacks, or deleverage, raising execution risk for strategic initiatives that depend on internal cash over the medium term.

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

Moderate fundamentals: revenue is declining (-48.9% TTM) and profitability is under pressure (net margin 3.3% TTM; declining EBIT/EBITDA margins). Balance sheet leverage is manageable (debt-to-equity 0.64; equity ratio 49.5%), but ROE is down (7.2% TTM). Cash generation is mixed with negative FCF growth (-19.7% TTM) despite healthy FCF-to-net income (87%).

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	126.50M	205.20M	175.90M	70.30M	529.60M	274.40M
Total Debt	1.24B	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: 49.31
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 49.31 is below the 20-day moving average (MA) of 49.55, above the 50-day MA of 47.41, and below the 200-day MA of 50.05, indicating a neutral trend. The MACD of 0.72 indicates Positive momentum. The RSI at 50.16 is Neutral, neither overbought nor oversold. The STOCH value of 47.88 is Neutral, 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	75 Outperform	$2.53B	35.16	8.18%	0.80%	6.98%	-4.56%
ASGN	67 Neutral	$2.16B	16.63	7.25%	―	-4.86%	-25.15%
GLOB	67 Neutral	$3.05B	30.85	4.91%	―	5.56%	-42.38%
DXC	62 Neutral	$2.55B	7.13	12.33%	―	-4.13%	2143.48%
TASK	62 Neutral	$987.36M	12.26	15.40%	―	19.88%	51.03%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AI	47 Neutral	$1.77B	-4.64	-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.