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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 2177.1, and so far today it has a volume of 735339. Performance year to date since the 3/26/1990 is 14.88%.

To help you determine whether Paychex, Inc. is undervalued the following values will help you decide. P/E is 28.39 and forward P/E is 24.68. PEG perhaps more useful shows that Paychex, Inc. has a value for PEG of 2.96. P/S ratio is 7.23 and the P/B ratio is 11.18. The P/Cash and P/Free cash flow is 60.62 and 67.97 respectively.

At the current price Paychex, Inc. is trading at, 59.08 (-0.34% today), Paychex, Inc. has a dividend yield of 3.10%, and this is covered by a payout ratio of 80.10%. Earnings per share (EPS) is 2.09, and this is looking to grow in the next year to 8.59% after growing 12.80% this past year. EPS growth quarter over quarter is 10.80%, and 8.90% for sales growth quarter over quarter.

The number of shares outstanding is 360.05, and the number of shares float is 321.62. The senior management bring insider ownership to 10.60%, and institutional ownership is at 70.40%. The float short is 5.98%, with the short ratio at a value of 8.84. 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 1.1, and quick ratio is 1.1. Long term debt/equity is 0 and total debt/equity is 0. In terms of margins, Paychex, Inc. has a gross margin of 71.00%, with its operating margin at 38.80%, and Paychex, Inc. has a profit margin of 25.60%.

The 52 week high is -3.77%, with 46.79% being its 52 week low. The 20 day simple moving average is 4.40% and the 200 day simple moving average is 13.18%.

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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