Stock Analysis · ASGN Inc (ASGN)

Stock Analysis · ASGN Inc (ASGN)

Overview

ASGN Inc. is a U.S.-based provider of professional services focused on helping organizations execute technology work and business initiatives. In simple terms, it connects companies with specialized talent and teams, and it also delivers project-based consulting services. Its offerings are often used when clients need to build or modernize software, improve digital capabilities, strengthen cybersecurity, support data and analytics programs, or staff up for complex IT projects.

Revenue generally comes from delivering these services to business and government clients through two broad motions: (1) placing professionals on assignment (often called staffing), and (2) delivering higher-value consulting engagements through specialized practices. In its filings, ASGN describes its reporting in terms of operating segments and service lines; the exact mix can shift over time based on client demand and acquisitions.

Main revenue sources (typical grouping used in company reporting):

  • Commercial staffing and professional placement (billing clients for skilled professionals on assignment)
  • Technology and digital consulting (project-based work and managed-style delivery through consulting brands)
  • Federal/government-oriented services (when applicable in the company’s segment reporting)

Because detailed percentages by revenue source are not included in the information provided here, the most reliable way to confirm the latest mix is the company’s most recent Form 10-K segment note and quarterly Form 10-Q updates.

Over the 2021–2025 period shown, total revenue rose into 2022 and then trended down, while net income declined more sharply (from about $409.9M in 2021 to about $113.5M in 2025). That pattern suggests profitability has been pressured as demand softened and/or as costs and expenses absorbed a larger share of revenue.

Key Figures

MetricValueIndustry
DateFeb 16, 2026
Context
SectorTechnology
IndustryInformation Technology Services
Market Cap $1.81B
Beta 0.85
Fundamental
P/E Ratio 15.9319.24
Profit Margin 2.85%4.91%
Revenue Growth -0.50%5.85%
Debt to Equity 64.82%58.47%
PEG 2.02
Free Cash Flow $283.30M

ASGN’s market capitalization is about $1.81B, and its beta is ~0.85 (a measure that has historically indicated less price volatility than the broader market). The current P/E ratio is ~15.9, below the industry median of ~19.2. Profitability and growth look weaker than the industry median in the most recent snapshot: profit margin ~2.85% vs. an industry median of ~4.91%, and year-over-year revenue growth ~-0.5% vs. an industry median of ~5.85%. Leverage is somewhat higher than the industry median, with debt-to-equity ~64.8% vs. ~58.5%. The company also generated substantial cash over the trailing twelve months, with free cash flow of about $283.3M (cash available after operating needs and capital spending, before certain financing decisions).

Growth (Medium)

ASGN operates in the broad market for IT services, digital transformation work, and specialized professional staffing. Over long periods, these areas have tended to benefit from ongoing enterprise spending on software, cloud adoption, cybersecurity, and data/analytics capabilities. However, demand can be cyclical: when clients slow hiring or delay projects, staffing volumes and consulting utilization can fall.

Strategically, ASGN’s positioning mixes recurring-like staffing revenue (tied to billable headcount and hours) with consulting work that can command higher billing rates when demand is strong. This combination can support growth when IT budgets expand, but it can also expose results to shifts in client confidence and project timing.

The year-over-year revenue growth profile shows a move from strong growth in 2022 (double-digit increases in multiple quarters) to a sustained contraction through 2023–2025, with the most recent quarter close to flat (about -0.5%). For long-term context, this points to a business that can grow meaningfully in favorable periods but has also faced a multi-year soft patch.

Free cash flow has been positive across the periods shown, though it has varied substantially (for example, roughly $453.9M in 2021, down to about $94.9M in 2022, then back above $300M in 2023–2025). Consistent cash generation can matter for resilience because it can help fund debt service, repurchases, acquisitions, or reinvestment—depending on management decisions and market conditions.

Risks (High)

This article is for informational purposes only and does not constitute financial advice. Some content is AI-generated. See Disclaimer