| 2013 | 2014 | 2015 | 2018 | 2019 (projected) | Paychex Cost of Revenue | 732,500,000 | 808,000,000 | 857,100,000 | 771,390,000 | 658,713,839 | Paychex Consolidated Income | 627,500,000 | 674,900,000 | 756,800,000 | 681,120,000 | 568,962,470 |
Paychex good news are not so good
 | By Ellen Johnson | Macroaxis Story |
Inspite fairly unsteady basic indicators, Paychex showed solid returns over the last few months and may actually be approaching a breakup point. What is Paychex Target Price Odds to finish over Current Price? Based on normal probability distribution, the odds of Paychex to move above current price in 30 days from now is about 9.83%. The Paychex probability density function shows the probability of Paychex Stock to fall within a particular range of prices over 30 days . Given the investment horizon of 30 days, Paychex has beta of -0.4392 . This implies as returns on benchmark increase, returns on holding Paychex are expected to decrease at a much smaller rate. During bear market, however, Paychex is likely to outperform the market. Additionally, the company has an alpha of 0.4929 implying that it can potentially generate 0.4929% excess return over S&P 500 after adjusting for the inherited market risk (beta).
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Reviewed by Raphi Shpitalnik
This firm currently holds 57.3M in liabilities with Debt to Equity (D/E) ratio of 2.3 implying the organisation greatly relies on financing operations through barrowing. The company has Current Ratio of 1.21 suggesting that it may have difficulties to pay its financial obligations when they are due. Paychex dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $1.03 per share. Lets now take a look at Paychex Number of Employees. Based on recorded statements Paychex is currently employing 14.6K people. This is much higher than that of the Industrials sector, and significantly higher than that of Business Services industry, The Number of Employees for all stocks is notably lower than Paychex.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Paychex income statement, its balance sheet, and the statement of cash flows. Potential Paychex investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Paychex investors may use each financial statement separately, they are all related. The changes in Paychex's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Paychex's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Paychex fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Paychex performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Paychex shares is the value that is considered the true value of the share. If the intrinsic value of Paychex is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Paychex. Please read more on our fundamental analysis page. How effective is Paychex in utilizing its assets?
Paychex reports assets on its Balance Sheet. It represents the amount of Paychex resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Paychex aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Human Resource & Employment Services space. To get a better handle on how balance sheet or income statements item affect Paychex volatility, please check the breakdown of all its fundamentals.Are Paychex Earnings Expected to grow?
The future earnings power of Paychex involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Paychex factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Paychex stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Paychex expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Paychex earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Paychex dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Paychex one year expected dividend income is about USD2.54 per share.
At this time, Paychex's Dividends Paid is fairly stable compared to the past year. Dividend Paid And Capex Coverage Ratio is likely to rise to 1.56 in 2024, whereas Dividend Yield is likely to drop 0.02 in 2024. | Last Reported | Projected for Next Year | ||
| Dividends Paid | 1.4 B | 1.4 B | |
| Dividend Yield | 0.03 | 0.02 | |
| Dividend Payout Ratio | 0.68 | 0.47 | |
| Dividend Paid And Capex Coverage Ratio | 1.48 | 1.56 |
Investing in dividend-paying stocks, such as Paychex is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Paychex must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Paychex. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.Paychex Gross Profit
Paychex Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Paychex previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Paychex Gross Profit growth over the last 10 years. Please check Paychex's gross profit and other fundamental indicators for more details.
Details
Paychex has beta of 1.07. Paychex returns are very sensitive to returns on the market. As market goes up or down, Paychex is expected to follow. The latest price spikes of Paychex may encourage investors to take a closer look at the company as it closed today at a share price of 75.67 on 2245532.000 in trading volume. The company directors and management were quite successful positioning the company components to exploit market volatility in April 2019. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 0.8952. The very small Stock volatility is a good signal to investors with longer term investment horizons. Paychex makes 3.51b revenue. Paychex is selling for 76.50. This is 1.2 percent decrease. Today lowest is 75.67. Paychex PPandE Turnover is fairly stable at the moment. Also, Paychex Deferred Revenue is increasing over the last 5 years. The previous year value of Paychex Deferred Revenue was 15,438,175.
On the whole, we believe that at this point Paychex is not too risky with below average odds of financial distress within the next 2 years. Our up-to-date buy or sell advice on the company is Cautious Hold.
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