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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 its Q4 earnings miss, with EPS of $1.15 per share falling short of the Zacks Consensus Estimate of $1.18 per share. The company's revenue was $980.1 million, with adjusted EBITDA at 11.0% of revenues. A downgrade in analyst ratings and crossing below its 50-day moving average also contributed to the negative trend. Additionally, comparisons with peers such as BigBear.ai, Draganfly, and 3 E Network Technology Group may have led to investor concerns.

1.c. Company Highlights

2. ASGN's Q4 2025 Earnings: A Strong Performance

ASGN Incorporated reported solid fourth quarter 2025 results, with revenues of $980.1 million at the top end of their guidance range. The company's adjusted EBITDA margin was 11%, exceeding expectations. Net income was $25.2 million, and earnings per share (EPS) came in at $1.15, slightly below estimates of $1.18. The company's commercial segment revenue grew 0.9% year over year to $698.6 million, while federal government segment revenue declined 3.7% to $281.5 million.

Publication Date: Feb -15

📋 Highlights
  • Q4 2025 Revenue:: Reached $980.1M, with IT consulting contributing 63% of total revenue, up from 59% YoY.
  • Commercial Bookings:: Recorded $444.4M in Q4, achieving a 1.3x book-to-bill ratio, driven by AI infrastructure demand.
  • Federal Backlog:: Contract backlog rose to $3B, covering 2.5x of the segment’s trailing twelve-month revenue.
  • Quinox Acquisition:: $290M cash deal to enhance digital engineering and global delivery capabilities, with Quinox’s EBITDA margins in the 20s.
  • Financial Performance:: Adjusted EBITDA margin hit 11%, exceeding guidance, and free cash flow conversion reached 87% of adjusted EBITDA ($93.7M).

Segment Performance

The commercial segment saw growth in consulting revenues, which increased 19.2% year over year to $339.4 million. The federal segment, on the other hand, experienced a decline in revenue due to the loss of higher-margin contracts. The company's gross margin for the commercial segment was 32.6%, consistent with the prior year, while the federal segment's gross margin declined to 19.9%.

Bookings and Backlog

Commercial consulting bookings had a record $444.4 million, translating to a book-to-bill ratio of 1.3 times for the quarter. The federal segment's new contract awards totaled $144.2 million, with a book-to-bill ratio of 0.9 times on a trailing twelve-month basis. The federal contract backlog was approximately $3 billion at quarter end.

Outlook and Valuation

The company expects revenue growth of $960 million to $980 million in 2026, with adjusted EBITDA margin of 9.7% to 10.1%. Analysts estimate revenue growth of 4.9% next year. With a current P/E ratio of 15.48 and EV/EBITDA of 6.92, the stock appears reasonably valued. The company's net leverage ratio is expected to increase to approximately 2.9 times post-acquisition of Quinox.

Strategic Developments

ASGN is transforming its business by advancing its solution capabilities, developing proprietary assets, and partnering with leading technology companies. The company is adopting a new brand, Everforth, and has acquired Quinox, a digital solutions provider, to enhance its digital engineering capabilities. CEO Theodore S. Hanson noted that clients are making investments in technology outcomes, but controlling spend and outcomes, driven by the need to harness the full potential of AI.

3. NewsRoom

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ASGN Incorporated to Change Corporate Name and NYSE Ticker to Everforth

Apr -08

Source: businesswire.com

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SG Americas Securities LLC Trims Stake in ASGN Incorporated $ASGN

Apr -06

Source: defenseworld.net

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Apex Systems Reaches Silver Tier in Databricks Partner Program

Mar -26

Source: businesswire.com

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Comparing Draganfly (NASDAQ:DPRO) & ASGN (NYSE:ASGN)

Mar -21

Source: defenseworld.net

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ASGN Inc (ASGN) Upgraded to Buy: What Does It Mean for the Stock?

Mar -09

Source: zacks.com

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ASGN Incorporated Announces the Closing of the Acquisition of Quinnox

Mar -09

Source: businesswire.com

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ASGN (NYSE:ASGN) & 3 E Network Technology Group (NASDAQ:MASK) Head to Head Analysis

Mar -06

Source: defenseworld.net

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Top Stocks From the Staffing Services Industry to Buy Now

Mar -05

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: 6.0/10

Value: 4.6

Growth: 6.6

Quality: 5.9

Yield: 2.0

Momentum: 8.0

Volatility: 9.0

1-Year Total Return ->

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Jack Henry

A-Score: 5.5/10

Value: 2.5

Growth: 5.7

Quality: 8.4

Yield: 2.0

Momentum: 5.0

Volatility: 9.7

1-Year Total Return ->

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CACI

A-Score: 5.3/10

Value: 3.8

Growth: 6.2

Quality: 5.2

Yield: 0.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

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Dolby Laboratories

A-Score: 5.1/10

Value: 3.5

Growth: 3.3

Quality: 8.5

Yield: 3.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
SAIC

A-Score: 5.0/10

Value: 6.6

Growth: 5.4

Quality: 7.1

Yield: 3.0

Momentum: 1.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
ASGN

A-Score: 4.1/10

Value: 7.7

Growth: 6.2

Quality: 5.2

Yield: 0.0

Momentum: 0.0

Volatility: 5.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

35.32$

Current Price

35.32$

Potential

-0.00%

Expected Cash-Flows