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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on ASGN

ASGN Incorporated's recent performance was negatively impacted by a decrease in earnings, with Q3 earnings per share (EPS) of $1.31, down from $1.43 a year ago. Although the company reported revenues of $1.01 billion, beating estimates, its adjusted EBITDA margin was 11.1%. The company's announcement of a plan to transition to Everforth, a new parent brand, may be a strategic move to unify its six current brands. Additionally, ASGN's partnership with Salesforce to deliver AI solutions and the launch of its AI Factory may drive future growth.

1.c. Company Highlights

2. ASGN's Q3 2025 Earnings: Strong Revenue Growth in IT Consulting

ASGN reported revenues of $1.01 billion for Q3 2025, at the high end of guidance, with an adjusted EBITDA margin of 11.1%. The company's IT consulting business drove growth, representing 63% of total revenues, up from 58% in the same period last year. The adjusted EBITDA was $112.6 million, and net income was $38.1 million. Earnings per share (EPS) came in at $0.868, below analyst estimates of $1.22. Gross margin was 29.4%, up 30 basis points year-over-year.

Publication Date: Oct -23

📋 Highlights
  • Revenue & Margin Performance:: Q3 revenue hit $1.01B (high end of guidance), with adjusted EBITDA margin at 11.1%.
  • IT Consulting Growth:: IT consulting drove 63% of total revenue (up from 58% YoY) and a 70-bp sequential margin improvement.
  • Bookings Momentum:: Commercial bookings reached $324M (1.2x book-to-bill), while federal new awards totaled $461M (1.5x book-to-bill).
  • Gross Margin Expansion:: Gross margin rose to 29.4% YoY, with commercial at 33.2% and federal at 20.3%.
  • Free Cash Flow & Share Repurchase:: Generated $72M in free cash flow, using $46M to repurchase 0.9M shares.

Segment Performance

The commercial segment saw mid-teens growth in consumer and industrial accounts, high single-digit growth in healthcare, and year-over-year declines in financial services, TMT, and business services. Commercial consulting bookings totaled $324 million, with a book-to-bill of 1.2 times. The federal segment new contract awards were $461 million, with a book-to-bill of 1.5 times. The company secured projects focused on data and AI, application development, and cybersecurity.

Margin Expansion and Cash Flow

Gross margin expansion was driven by the commercial segment, which saw gross margins at 33.2%, while the federal government segment gross margins were at 20.3%. The company generated $72 million in free cash flow and deployed $46 million to repurchase 0.9 million shares. The current P/E Ratio of 16.16 and EV/EBITDA of 18.79 indicate that the stock is trading at a premium, but the Free Cash Flow Yield of 13.38% is attractive.

Guidance and Outlook

For the fourth quarter, ASGN expects revenues of $960 million to $980 million, net income of $32.1 million to $35.7 million, and adjusted EBITDA of $102 million to $107 million. The government shutdown is expected to have a minimal impact on current operations but may slow down new awards and ramp-ups on existing ones. Analysts estimate next year's revenue growth at 1.4%, indicating a stable outlook.

Business Trends and Opportunities

Commercial IT consulting is expected to drive margin expansion, with the company investing in Salesforce capabilities to participate in the agentic and experience markets. The federal government segment is expected to benefit from a recent bill, with 75% of its business in defense, intel, and national security. The company sees a shift in buyer behavior, with clients seeking partners to drive outcomes rather than just augmentation.

Competition and Pricing

The company faces traditional competitors like Accenture, Big Four, and India-based pure plays, but pricing is holding up, particularly for its Toplot and GlideFast services. The company's Mexican facility hasn't been impacted by the political climate, and it is exploring opportunities in accelerators, which are allowing for more rapid and effective delivery of work.

3. NewsRoom

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ASGN Incorporated (ASGN) Analyst/Investor Day Transcript

Nov -22

Source: seekingalpha.com

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ASGN Incorporated Announces Plan to Transition to Everforth

Nov -20

Source: businesswire.com

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ASGN to Host 2025 Investor Day

Nov -20

Source: businesswire.com

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ASGN Unveils AI Factory to Accelerate Enterprise Transformation

Nov -19

Source: businesswire.com

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ASGN and Salesforce Announce 360-Degree Partnership to Deliver AI Solutions Across Enterprise Platforms

Nov -18

Source: businesswire.com

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ASGN Inc (ASGN) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Oct -23

Source: zacks.com

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ASGN Incorporated (ASGN) Q3 2025 Earnings Call Transcript

Oct -22

Source: seekingalpha.com

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ASGN Inc (ASGN) Q3 Earnings and Revenues Top Estimates

Oct -22

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.79%)

6. Segments

Commercial

Expected Growth: 3.5%

ASGN Incorporated's commercial segment growth of 3.5% is driven by increasing demand for IT consulting services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digital transformation, cloud computing, and cybersecurity solutions is contributing to its growth. Furthermore, the company's strong relationships with clients and its ability to provide tailored solutions are also driving revenue growth.

Federal Government

Expected Growth: 4.5%

The 4.5% growth of Federal Government segment from ASGN Incorporated is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity services. The company's expertise in IT consulting, systems integration, and managed services positions it well to capitalize on government agencies' modernization efforts, contributing to its steady growth.

7. Detailed Products

EagleONE

A comprehensive IT consulting and outsourcing services platform

CSG

A suite of IT consulting services focused on digital transformation

SAP Services

A range of SAP consulting services, from implementation to optimization

Cloud and Infrastructure Services

A comprehensive suite of cloud and infrastructure services, including migration, management, and security

Cybersecurity Services

A range of cybersecurity services, including risk assessment, penetration testing, and incident response

Data Analytics and AI

A suite of data analytics and AI services, including data strategy, architecture, and implementation

Digital Experience

A range of digital experience services, including UX design, development, and testing

8. ASGN Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for ASGN Incorporated is moderate, as there are some alternatives available in the market, but they are not very attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for ASGN Incorporated is low, as the company operates in a niche market and customers have limited alternatives.

Bargaining Power Of Suppliers

The bargaining power of suppliers for ASGN Incorporated is moderate, as the company relies on a few key suppliers, but they do not have significant bargaining power.

Threat Of New Entrants

The threat of new entrants for ASGN Incorporated is high, as the market is attractive and there are low barriers to entry.

Intensity Of Rivalry

The intensity of rivalry for ASGN Incorporated is high, as the company operates in a competitive market with several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.82%
Debt Cost 8.16%
Equity Weight 64.18%
Equity Cost 11.53%
WACC 10.32%
Leverage 55.82%

11. Quality Control: ASGN Incorporated passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Leidos

A-Score: 5.7/10

Value: 4.3

Growth: 6.7

Quality: 5.9

Yield: 2.0

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

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Dolby Laboratories

A-Score: 5.3/10

Value: 3.4

Growth: 4.2

Quality: 8.5

Yield: 3.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Jack Henry

A-Score: 5.0/10

Value: 2.7

Growth: 5.7

Quality: 7.4

Yield: 3.0

Momentum: 1.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
SAIC

A-Score: 4.8/10

Value: 6.8

Growth: 5.4

Quality: 6.4

Yield: 3.0

Momentum: 0.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
CACI

A-Score: 4.5/10

Value: 3.7

Growth: 6.4

Quality: 5.1

Yield: 0.0

Momentum: 4.5

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
ASGN

A-Score: 4.1/10

Value: 7.6

Growth: 6.2

Quality: 5.2

Yield: 0.0

Momentum: 0.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

45.82$

Current Price

45.82$

Potential

-0.00%

Expected Cash-Flows