ASGN - Embedded Expectations Analysis - 2020 02 25
ï€ ASGN Incorporated (ASGN:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 13.9x Uniform P/E, implying bearish expectations for the firm. However, given management's confidence about their Intersys acquisition and software license purchase, market expectations are overly bearish, suggesting equity upside remains warrantedï€ Specifically, management is confident their Intersys acquisition has contributed positively to their share pipeline and bookings, and that enterprise resource planning will dramatically change with the introduction of new technologies. In addition, they are confident they purchased third-party software licenses to take advantage of favorable pricing and terms
ï€ Given management's confidence about their acquisitions and purchases, management expectations are overly bearish, and equity upside remains warranted
ASGN provides information technology (IT) and other services in the technology, digital, creative, engineering and life sciences fields across commercial and government sectors. The company's segments are: Apex, which provides technical, digital, creative, scientific and engineering personnel for contract, contract-to-hire, and permanent placement positions to clients across the United States and Canada; Oxford, which provides staffing and permanent placement services in select skill and geographic markets in the United States and Europe; and ECS, which delivers solutions in cloud, cybersecurity, artificial intelligence, machine learning, application and IT modernization, science and engineering.
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