Stock Updates

Is Paychex, Inc.(NASDAQ: PAYX), a large market cap stock a smart buy?

With a market cap of has a large market cap size. Paychex, Inc. (NASDAQ: PAYX) has been on the stock market since its IPO date on the 3/26/1990. Paychex, Inc. is in the Staffing & Outsourcing Services industry and Services sector. Average volume for Paychex, Inc., is 1999.42, and so far today it has a volume of 2315700. Performance year to date since the 3/26/1990 is 11.36%.

To help you determine whether Paychex, Inc. is undervalued the following values will help you decide. P/E is 27.26 and forward P/E is 23.96. PEG perhaps more useful shows that Paychex, Inc. has a value for PEG of 2.84. P/S ratio is 6.81 and the P/B ratio is 10.43. The P/Cash and P/Free cash flow is 41.26 and 64.8 respectively.

At the current price Paychex, Inc. is trading at, 57.46 (-0.71% today), Paychex, Inc. has a dividend yield of 3.20%, and this is covered by a payout ratio of 81.10%. Earnings per share (EPS) is 2.11, and this is looking to grow in the next year to 8.02% after growing 12.80% this past year. EPS growth quarter over quarter is 3.60%, and 8.60% for sales growth quarter over quarter.

The number of shares outstanding is 357.38, and the number of shares float is 323.12. The senior management bring insider ownership to 10.60%, and institutional ownership is at 71.90%. The float short is 5.73%, with the short ratio at a value of 9.25. Management has seen a return on assets of 11.90%, and also a return on investment of 39.40%.

The ability for Paychex, Inc., to deal with debt, means it current ratio is 1.2, and quick ratio is 1.2. Long term debt/equity is 0 and total debt/equity is 0.03. In terms of margins, Paychex, Inc. has a gross margin of 70.90%, with its operating margin at 38.90%, and Paychex, Inc. has a profit margin of 25.40%.

The 52 week high is -6.75%, with 28.71% being its 52 week low. The 20 day simple moving average is -3.77% and the 200 day simple moving average is 6.29%.

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.


About the author

Tony Dabbs

Leave a Comment