+ Watch PAYX
on My Watchlist
Paychex provides payroll, human resource, and employee benefits outsourcing for small and medium-sized businesses.
1. Technology providers will erode market share in service biz2. Increasing trend towards global operations erodes competitive advantage3. payout ratio of 85% dramatically limits options for company to reinvest earnings
No debt, well managed and growing steadily with conservative management.
Companies are hiring employees and this directly affect revenue without increasing operations cost
Payx has all good numbers, its in a rough business that might be the reason it performs almost the same as the s&p.
This is a "float" story, similar to an insurer. Large float better returns over time nice combo. They payout a high percentage of earnings, so reinvest your dividends...
For reference point and to allow for comments by others. As of the end of March, 2013.ROE 35.53%Trailing PE 24.69PB 8.60Div yield 3.50%As of Feb, 28
Steady, cash flow machine with a solid competitive advantage (high switching costs). Pays a regular, safe dividend, and provides some income and stability to my portfolio.
Used to own this stock and it continually performed well.
One of my favorite wide-moat businesses trading at a lofty price. I expect Paychex to return 7% pa v a market return of 8% pa over the next 5 years. Over 50% of Paychex's expected ROI derives from its current dividend yield. I forecast that much of company's growth's contribution to ROI will be offset by a PE multiples that narrows to 18 from its current 21.5 over 5 years. Paychex's stock price appears to be 20% above its intrinsic value. This is a solid, well-managed business about which Mr. Market has become irrationally exuberant.
Nasdaq in maximums.
As the economy improves, so will payx numbers.
High growth potential
At 32 dollars a share and a 4% dividend, besides the fact that it appears the 95 % of fools vote it will outperform st spy, and it appears from the graph that 95% of the time it does just that
Good Dividend stock with no debt.
more employment = WIN
dividend & positive employment outlook make this a good pick, imo
might be an outperformer someday.... but thats not today sorry
Solid business Wide moat/durable competetive advantage(s)Persistent/predictble FCFs, returns on capital and profit marginsStrong balance sheet (cash, no debt, Current Ratio, etc)Managers are competent stewards of owner capitalCurrently trading well above FVFair value = 25.85Low-Moderate FV uncertaintyBuy with 20% MOS below 20.90Sell above 30.80
No debt, declining cost of sales, insider ownership, and a quality product.
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