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A look at a High Market Cap Stock: Paychex, Inc., PAYX

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 21652.87. Since its IPO date on the 3/26/1990, Paychex, Inc., PAYX performance year to date is 17.02%. Today Paychex, Inc., PAYX has gained 0.53%, with a current price of 60.7.

Ownership of the company is 10.60% for insider ownership while institutional ownership is 72.30%. The management of the company have seen the company have a payout ratio of 80.10%. Return of assets are at 11.90%, with return on investment at 39.40%.

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 25.60%, this is combined with a gross margin of 71.00%, and operating margin of 38.80%. 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 12.80%. A performance for the year of 36.55%. The 52-week high is -1.14%, and the 52-week low is 50.81%. The average volume for Paychex, Inc., PAYX is 538345.

With a target price of 52.5, can Paychex, Inc., PAYX reach this target? Looking at the value indicators of Paychex, Inc., PAYX. Paychex, Inc. has a P/E of 28.92 and a forward P/E of 25.13. Perhaps the more useful indicator than P/E, is PEG which has a value of 3.01. Paychex, Inc. also has a P/S and a P/B of 7.34 and 11.39 respectively. For P/cash, Paychex, Inc. has a value of 61.5, while it is 68.96 for P/free cash flow.

At the current price of 60.7, Paychex, Inc. has a dividend yield of 3.05%. We see a return on equity of 40.70%.

Looking more long-term Paychex, Inc., is projected to get an EPS growth for the next five years of 9.60%. In the short-term an EPS growth of 8.63% in the next year is forecasted. This is after a EPS growth of 12.80% for this year and for the last five years a 8.00% 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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Mark Hines

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