| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 146.22 | 201 |
| Intrinsic value (DCF) | 0.00 | -100 |
| Graham-Dodd Method | 16.81 | -65 |
| Graham Formula | 2.60 | -95 |
ASGN Incorporated (NYSE: ASGN) is a leading provider of IT services and professional solutions, specializing in technology, digital, and creative fields for both commercial and government sectors in the U.S. The company operates through two key segments: Commercial and Federal Government. The Commercial segment delivers consulting, digital marketing, and permanent placement services to Fortune 1000 and mid-market clients, with expertise in workforce mobilization, cloud computing, data analytics, and digital transformation. The Federal Government segment supports defense, intelligence, and civilian agencies with mission-critical solutions, including cybersecurity, AI, machine learning, and IT modernization. Headquartered in Glen Allen, Virginia, ASGN has established itself as a trusted partner in IT staffing and consulting, leveraging its deep industry expertise to drive innovation and efficiency. With a market cap of approximately $2.35 billion, ASGN plays a pivotal role in the rapidly evolving IT services sector, catering to the growing demand for digital transformation and specialized talent.
ASGN Incorporated presents a compelling investment opportunity due to its diversified revenue streams across commercial and federal government sectors, strong cash flow generation ($400M operating cash flow in FY 2023), and solid profitability (net income of $175.2M). The company benefits from increasing demand for IT consulting and digital transformation services, particularly in cybersecurity and cloud solutions. However, risks include high total debt ($1.1B) and exposure to cyclical IT spending trends. With a beta of 1.08, ASGN exhibits moderate market sensitivity, making it a balanced play in the IT services space. The lack of dividends may deter income-focused investors, but growth-oriented investors may find its EPS growth (diluted EPS of $3.83) attractive.
ASGN Incorporated competes in the highly fragmented IT services and staffing industry, differentiating itself through a dual focus on commercial enterprises and federal government contracts. Its competitive advantage lies in its specialized expertise in high-growth areas like cloud computing, cybersecurity, and AI, which are critical for digital transformation. The Federal Government segment provides stability with long-term contracts, while the Commercial segment offers higher-margin opportunities. ASGN’s ability to provide both consulting and permanent placement services creates cross-selling potential. However, the company faces intense competition from larger IT services firms with greater scale and global reach. Its mid-market positioning allows agility but may limit bargaining power against mega-cap competitors. ASGN’s lack of international presence could be a drawback as IT services demand grows globally. The company’s focus on the U.S. federal sector is a strength but also exposes it to budgetary fluctuations. Overall, ASGN’s niche expertise and balanced portfolio provide resilience, though it must continue investing in high-demand skill areas to maintain its edge.