Is Paychex Stock a Good Investment?
Paychex Investment Advice | PAYX |
- Examine Paychex's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Paychex's leadership team and their track record. Good management can help Paychex navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Business Services space and any emerging trends that could impact Paychex's business and its evolving consumer preferences.
- Compare Paychex's performance and market position to its competitors. Analyze how Paychex is positioned in terms of product offerings, innovation, and market share.
- Check if Paychex pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Paychex's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Paychex stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Paychex is a good investment.
Sell | Buy |
Hold
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Not Available | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Paychex Stock
Researching Paychex's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 81.0% of the company shares are owned by institutional investors. The company last dividend was issued on the 7th of February 2025. Paychex had 3:2 split on the 23rd of May 2000.
To determine if Paychex is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Paychex's research are outlined below:
| Over 81.0% of the company shares are owned by institutional investors |
Paychex uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Paychex. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Paychex's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 3rd of April 2024 Upcoming Quarterly Report | View | |
| 4th of July 2024 Next Financial Report | View | |
| 29th of February 2024 Next Fiscal Quarter End | View | |
| 4th of July 2024 Next Fiscal Year End | View | |
| 30th of November 2023 Last Quarter Report | View | |
| 31st of May 2023 Last Financial Announcement | View |
Paychex's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 52.81 B.Paychex's profitablity analysis
The company has Profit Margin (PM) of 0.32 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.46 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.46.Determining Paychex's profitability involves analyzing its financial statements and using various financial metrics to determine if Paychex is a good buy. For example, gross profit margin measures Paychex's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Paychex's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Paychex's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Paychex. Check Paychex's Beneish M Score to see the likelihood of Paychex's management manipulating its earnings.
Basic technical analysis of Paychex Stock
As of the 4th of May, Paychex holds the Coefficient Of Variation of 4684.18, risk adjusted performance of 0.0365, and Semi Deviation of 1.94. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Paychex, as well as the relationship between them.Paychex's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Paychex insiders, such as employees or executives, is commonly permitted as long as it does not rely on Paychex's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Paychex insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Paychex's Outstanding Corporate Bonds
Paychex issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Paychex uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Paychex bonds can be classified according to their maturity, which is the date when Paychex has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand Paychex's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Paychex's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0365 | |||
| Market Risk Adjusted Performance | 0.205 | |||
| Mean Deviation | 1.32 | |||
| Semi Deviation | 1.94 | |||
| Downside Deviation | 2.02 | |||
| Coefficient Of Variation | 4684.18 | |||
| Standard Deviation | 1.89 | |||
| Variance | 3.55 | |||
| Information Ratio | 0.0777 | |||
| Jensen Alpha | 0.0483 | |||
| Total Risk Alpha | 0.1629 | |||
| Sortino Ratio | 0.0726 | |||
| Treynor Ratio | 0.195 | |||
| Maximum Drawdown | 10.85 | |||
| Value At Risk | (2.48) | |||
| Potential Upside | 2.18 | |||
| Downside Variance | 4.08 | |||
| Semi Variance | 3.77 | |||
| Expected Short fall | (1.32) | |||
| Skewness | (0.22) | |||
| Kurtosis | 4.21 |
| Risk Adjusted Performance | 0.0365 | |||
| Market Risk Adjusted Performance | 0.205 | |||
| Mean Deviation | 1.32 | |||
| Semi Deviation | 1.94 | |||
| Downside Deviation | 2.02 | |||
| Coefficient Of Variation | 4684.18 | |||
| Standard Deviation | 1.89 | |||
| Variance | 3.55 | |||
| Information Ratio | 0.0777 | |||
| Jensen Alpha | 0.0483 | |||
| Total Risk Alpha | 0.1629 | |||
| Sortino Ratio | 0.0726 | |||
| Treynor Ratio | 0.195 | |||
| Maximum Drawdown | 10.85 | |||
| Value At Risk | (2.48) | |||
| Potential Upside | 2.18 | |||
| Downside Variance | 4.08 | |||
| Semi Variance | 3.77 | |||
| Expected Short fall | (1.32) | |||
| Skewness | (0.22) | |||
| Kurtosis | 4.21 |
Consider Paychex's intraday indicators
Paychex intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Paychex stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Paychex time-series forecasting models is one of many Paychex's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Paychex's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.
Paychex Stock media impact
There is far too much social signal, news, headlines, and media speculation about Paychex that are available to investors today. This information is accessible both publicly - through Paychex's media outlets and privately, via word of mouth or internal channels. However, regardless of the source, the sheer volume of Paychex-related data is difficult to distill into actionable insights, especially for investors who are not well-versed in the rapidly evolving tools and techniques of investment management.
A primary focus of Paychex news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Paychex relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Paychex's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Paychex alpha.
Paychex Corporate Management
| John Gibson | Sr. VP of Service | Profile | |
| Christopher Simmons | Controller, VP | Profile | |
| Dave Wilson | Vice Services | Profile | |
| Chad Parodi | Managing Services | Profile | |
| Christopher DeSalvo | VP Operations | Profile | |
| Frank Fiorille | Compliance Risk | Profile |
Additional Tools for Paychex Stock Analysis
When running Paychex's price analysis, check to measure Paychex's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Paychex is operating at the current time. Most of Paychex's value examination focuses on studying past and present price action to predict the probability of Paychex's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Paychex's price. Additionally, you may evaluate how the addition of Paychex to your portfolios can decrease your overall portfolio volatility.