Paychex Story

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PAYX -- USA Stock  

USD 88.37  0.30  0.34%

Paychex Gross Margin is fairly stable at the moment as compared to the past year. Paychex reported Gross Margin of 61.47 in 2019. Payout Ratio is likely to rise to 0.73 in 2020, whereas Net Income Per Employee is likely to drop slightly above 59 K in 2020. As many baby boomers are still indifferent towards industrials space, it makes sense to break down Paychex. We will analyze why it could be a much better year for Paychex shareholders. In this post, I will also go over some essential variables affecting Paychex's products, and show how it may impact Paychex outlook for active traders this year.
Published over three months ago
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Another strong showing for Paychex
Paychex has performance score of 8 on a scale of 0 to 100. The company holds a Beta of -0.2174, which implies not very significant fluctuations relative to the market. Let's try to break down what Paychex's beta means in this case. As returns on the market increase, returns on owning Paychex are expected to decrease at a much lower rate. During the bear market, Paychex is likely to outperform the market. Although it is extremely important to respect Paychex current trending patterns, it is better to be realistic regarding the information on equity existing price patterns. The philosophy towards forecasting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Paychex technical indicators, you can presently evaluate if the expected return of 0.16% will be sustainable into the future. Paychex right now holds a risk of 1.34%. Please check Paychex treynor ratio, expected short fall, as well as the relationship between the Expected Short fall and day median price to decide if Paychex will be following its historical price patterns.

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 $1.43 per share.
Dividend Yield is likely to rise to 0.0272 in 2021, whereas Payment of Dividends and Other Cash Distributions is likely to drop (802.9 M) in 2021.
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-744.1 M-802.9 M
Dividend Yield 0.0243  0.0272 
Dividends per Basic Common Share 2.64  2.31 
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.

How important is Paychex's Liquidity

Paychex financial leverage refers to using borrowed capital as a funding source to finance Paychex ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Paychex financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Paychex's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Paychex, but it might be worth checking our own buy vs. sell analysis

What did Paychex file with SEC?

The SEC filings are financial statements or other formal documents of Paychex that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database. Please check here for more information.
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Paychex shareholders may or may not be submitted as SEC does not always require it.
Financial Statements and Exhibits. Results of Operations and Financial Condition
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Paychex shareholders may or may not be submitted as SEC does not always require it.

Paychex exotic insider transaction detected

Legal trades by Paychex insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Paychex insider trading alert for general transaction of stock option by Robert Schrader, VPController, on 28th of December 2020. This event was filed by Paychex Inc with SEC on 2020-12-28. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is the case for Paychex Investors

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Paychex has an asset utilization ratio of 62.73 percent. This suggests that the company is making $0.63 for each dollar of assets. An increasing asset utilization means that Paychex is more efficient with each dollar of assets it utilizes for everyday operations.
 2019 2020 (projected)
Long Term Debt to Equity0.290.32
Interest Coverage55.1185.23

Over 3 percent rise for Paychex. What does it mean for investors?

Kurtosis is down to 1.45. It may suggest a possible volatility slide. Paychex has relatively low volatility with skewness of -0.5 and kurtosis of 1.45. However, we advise all investors to independently investigate Paychex to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Take On Paychex

While some firms within the staffing & employment services industry are still a little expensive, even after the recent corrections, Paychex may offer a potential longer-term growth to investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor sell any shares of Paychex at this time. The Paychex risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Paychex.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Paychex. Please refer to our Terms of Use for any information regarding our disclosure principles.

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