Paychex Story

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PAYX -- USA Stock  

USD 87.33  0.37  0.43%

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. Paychex is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 23rd of December 2020. While some of us are getting worried about industrials space, it is reasonable to break down Paychex using its current fundamental data. We will evaluate if Paychex shares are reasonably priced going into January. The company almost mirrors the market. We can now inspect Paychex as a potential investment option for your portfolios.
Published over a month ago
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Does Paychex (NASDAQ:PAYX) have strong technical indicators based on the current rise?
Macroaxis provides advice on Paychex to complement and cross-verify current analyst consensus on Paychex. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. Paychex dividends can provide a clue to the current value of the stock. The firm one year expected dividend income is about $1.43 per share.
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 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.

What is Paychex Asset Breakdown?

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. 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 $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.

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

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 Gross Profit in more details.

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

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Paychex is not uncomon. There are few distinct groups of Paychex stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of Paychex is distributed among investors.

Ownership Allocation

Paychex has a total of 359.5 Million outstanding shares. The majority of Paychex outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Paychex to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Paychex. Please pay attention to any change in the institutional holdings of Paychex as this could imply that something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.

Retail Investors
Retail Investors16.32
 2017 2018 2019 2020 (projected)
Share Based Compensation44.6 M46.2 M53.13 M46.18 M
Net Cash Flow from Operations1.28 B1.27 B1.44 B1.16 B

Asset Utilization

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 61.79 percent. This suggests that the company is making $0.62 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.

Current Assets
Assets Non Current
2.7 B
2.7 B
Current Assets5 Billion47.77
Assets Non Current2.73 Billion26.1
Goodwill2.71 Billion25.86
Tax Assets28.01 Million0.27

Will Paychex continue to rise?

Current jensen alpha is at 0.18. Paychex has relatively low volatility with skewness of -0.07 and kurtosis of -0.12. 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.

While some firms under the staffing & employment services industry are still a bit expensive, Paychex may offer a potential longer-term growth to investors. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to exit some or all of your Paychex holdings as it seems the potential growth was already fully factored into the current price. 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 Raphi 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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