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Paychex, Inc. (NASDAQ: PAYX) – Is this large market cap stock undervalued?

Paychex, Inc. (NASDAQ: PAYX), is firmly in the large market cap category with market cap of 20804.65. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Paychex, Inc. is 57.5 (with a change from open of -2.34%), this in conjunction with a target price of 53.46. Volume today has so far reached 6406900, with an average volume of about 2127.91. The GAP for this stock, is -2.31%.

The P/E ratio is 27.54, bringing the forward P/E to a value of 23.94. The current EPS for Paychex, Inc., is 2.09, with a EPS growth for this year coming to a value of 12.80%. Performance has been interesting with performance year to date coming to 11.44%.

Looking further into the growth statistics for Paychex, Inc., EPS is looking like it will grow 8.64% in the next year. Looking even further it is projected to be 9.60%. Quarter over quarter is 10.80% for EPS growth and for sales growth quarter over quarter it is 8.90%. Looking at past EPS growth statistics we see that for the past five years it has been 8.00%. Sales growth for the past five years has in fact been 7.20%.

Looking at the ownership, we see that the insider ownership is at 10.60% and institutional ownership is 71.90%. Shares outstanding is 361.82, while shares float is at a value of 324.28. Float short for Paychex, Inc. is 5.65% and the short ratio is 8.6.

In terms of debt, long term debt/equity is 0, while the total debt/equity comes to 0. The ability to meet these debts, means that the current ratio is 1.1, and the quick ratio is 1.1. The most recent gross margin is 71.00% and their operating margin is 38.80%. The profit margin is 25.60%.

Paychex, Inc. has seen returns on assets of 11.90%, and on investment, 39.40%. Return on equity is 40.70%. Price/Earnings to growth ratio is 2.87. Price/Sales ratio is at a value of 7.05, with Price/book ratio coming to 10.85 and Price/cash is 59.09, and finally Price/Free cash Flow is 66.26.

The simple moving averages are -3.95% and 6.54% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -6.69% and the 52 week low is 30.44%.

Paychex, Inc. has a dividend yield of 3.20%, with a current price of 57.5. The ability to pay this means the payout ratio is 80.10%. This is in an industry, Staffing & Outsourcing Services, with equally high dividends from other companies in this sector, which it is Services. Paychex, Inc. is based in USA.

Performance in the Staffing & Outsourcing Services industry means that Paychex, Inc. has seen performance for the past week of -3.65%, with performance for the month coming to -5.19%. Looking at the data for the quarter it is at a value of 3.21%, and for the half year the performance is 29.14%. Volatility for this week is 1.49% and for the month this is 1.40%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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