This is a step-by-step stock review to answer the question, is On Assignment (ASGN) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is On Assignment (ASGN) stock a good buy?
- On Assignment Company History
- MOS
- Meaning
- Moat
- Management
- 4M Score
- Is On Assignment (ASGN) stock a good buy?
1. On Assignment Company History
- Founded: On Assignment was founded in 1985 by Peter Dameris, initially focusing on providing temporary healthcare professionals to hospitals and laboratories.
- Early Growth: The company quickly expanded its services, becoming a leading provider of specialized staffing solutions for the healthcare and life sciences industries.
- Diversification: In the 2000s, On Assignment diversified into other sectors, including technology, engineering, and life sciences, broadening its service offerings to meet the growing demand for skilled professionals.
- Acquisitions: Strategic acquisitions played a significant role in the company’s growth. Notably, On Assignment acquired Oxford Global Resources in 2007 and Apex Systems in 2012, significantly enhancing its IT staffing capabilities.
- Rebranding: In 2018, On Assignment rebranded as ASGN Incorporated, reflecting its broader focus beyond healthcare staffing and its position as a leader in the professional staffing and IT services sectors.
- Market Leadership: ASGN has become one of the largest staffing firms in the United States, providing high-end consulting and staffing services across various industries, including IT, life sciences, and healthcare.
- Headquarters: ASGN is headquartered in Glen Allen, Virginia, continuing to drive innovation and growth in the staffing industry.
2. MOS (Margin Of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: Watch
- Score: 56
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how On Assignment makes money:
- Staffing Services: On Assignment (now ASGN Incorporated) makes money by providing staffing and recruitment services for various sectors, including technology, engineering, and life sciences.
- Temporary Staffing: The company earns revenue from placing temporary professionals in short-term positions across different industries.
- Permanent Placement: ASGN generates income from recruiting and placing permanent employees in client companies.
- Contract Staffing: Revenue comes from supplying contractors and consultants for specific projects and longer-term assignments.
- Managed Services: ASGN offers managed services, including project management and recruitment process outsourcing, contributing to its revenue.
- Specialized Staffing Solutions: The company earns from providing specialized staffing solutions tailored to the needs of industries like IT, healthcare, and engineering.
- Command Transportation
- Apex Systems
- Oxford Global Resources
- The On Assignment Professional Services Group
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how On Assignment (ASGN) stacks up against other companies.
- CGI Inc.(GIB) – 78
- Globant S.A.(GLOB) – 78
- Paymentus Holdings, Inc.(PAY) – 72
- N-able, Inc.(NABL) – 67
- Broadridge Financial Solutions, Inc.(BR) – 67
- ASGN Incorporated.(ASGN) – 56
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Growth and Expansion: Ted Hanson Successfully expanded On Assignment’s business operations, including entering new markets and broadening service offerings across various sectors.
- Acquisitions: Led strategic acquisitions to enhance On Assignment’s capabilities, including the purchase of Apex Systems and Command Transportation, significantly boosting the company’s market position.
- Rebranding to ASGN: Oversaw the rebranding of On Assignment to ASGN Incorporated, reflecting the company’s broader focus beyond staffing to include managed services and consulting.
- Financial Performance: Drove significant improvements in financial performance, including revenue growth and profitability, through effective management and strategic investments.
- Technology Integration: Enhanced the company’s use of technology and data analytics to improve staffing solutions and operational efficiency, contributing to its competitive edge in the market.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of On Assignment (ASGN) is 64/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is On Assignment (ASGN) stock a good buy?
Some of the top questions investors can have is On Assignment (ASGN) stock a good buy or should I buy On Assignment (ASGN) stock?
On Assignment, now known as ASGN Incorporated, is a promising investment due to its strong growth in staffing and managed services. The company has expanded its service offerings and client base through strategic acquisitions like Apex Systems and Command Transportation.
ASGN’s focus on technology and digital solutions enhances its operational efficiency and market competitiveness. However, the staffing industry can be affected by economic fluctuations and changing labor market conditions.
Overall, ASGN’s strategic growth, diversified services, and technology integration make it a strong investment, though investors should consider potential market risks.
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To truly know if On Assignment is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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