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Morning Recap: Paychex, Inc., (PAYX)

Friday February 24th 2017: Paychex, Inc., PAYX is in the exchange NASDAQ and its industry is Staffing & Outsourcing Services in the sector of Services. Based in USA, Paychex, Inc., PAYX  has a market cap of 20.55 B. Since its IPO date on the 3/26/1990, Paychex, Inc., PAYX performance year to date is -6.21%. Today Paychex, Inc., PAYX has gained -0.17%, with a current price of 57.1.

Ownership of the company is 10.60% for insider ownership while institutional ownership is 70.80%. The management of the company have seen the company have a payout ratio of 81.00%. Return of assets are at 12.60%, with return on investment at 41.50%.

In terms of debt levels and profit levels, Paychex, Inc., PAYX is seeing a long-term debt/equity of 0. While Total debt/equity is 0. With a profit margin of 25.90%, this is combined with a gross margin of 70.80%, and operating margin of 39.30%. Paychex, Inc. ability to meet debt levels, with a current ratio of 1.1, while the quick ratio is 1.1.

For the last year Paychex, Inc., PAYX has seen a EPS growth of 8.00%. A performance for the year of -6.58%. The 52-week high is -9.41%, and the 52-week low is 8.19%. The average volume for Paychex, Inc., PAYX is 1383348.

With a target price of 58.28, can Paychex, Inc., PAYX reach this target? Looking at the value indicators of Paychex, Inc., PAYX. Paychex, Inc. has a P/E of 25.33 and a forward P/E of 22.35. Perhaps the more useful indicator than P/E, is PEG which has a value of 3.09. Paychex, Inc. also has a P/S and a P/B of 6.52 and 10.5 respectively. For P/cash, Paychex, Inc. has a value of 63.54, while it is 100.83 for P/free cash flow.

At the current price of 57.1, Paychex, Inc. has a dividend yield of 3.22%. We see a return on equity of 42.70%.

Looking more long-term Paychex, Inc., is projected to get an EPS growth for the next five years of 8.20%. In the short-term an EPS growth of 7.72% in the next year is forecasted. This is after a EPS growth of 8.00% for this year and for the last five years a 8.30% growth has been seen.

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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Tony Dabbs

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