Paychex

PAYX-Q

NASDAQ:PAYX

93.58
0.43 (0.46%)
Paychex, Inc. is an American provider of payroll, human resource, and benefits outsourcing services for small- to medium-sized businesses.
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Analysis and Opinions about PAYX-Q

Signal
Opinion
Expert
WATCH
WATCH
April 11, 2018

This company had a great run in 2017, but recently has failed to perform. Price is two times growth in the P/E (i.e. the P/E is around 20, while growth is about 10%) – this is expensive. Keep it on your radar.

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Paychex (PAYX-Q)
April 11, 2018

This company had a great run in 2017, but recently has failed to perform. Price is two times growth in the P/E (i.e. the P/E is around 20, while growth is about 10%) – this is expensive. Keep it on your radar.

TOP PICK
TOP PICK
March 28, 2018

Just made an acquisition in Europe where they are growing to become more international. It's a cash cow--they bankroll payroll deductions before IRS payments so they make the interest. 3.3% dividend yield. Stock fell way too fast, so here's an opportunity. (Analysts' price target $65.02)

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Paychex (PAYX-Q)
March 28, 2018

Just made an acquisition in Europe where they are growing to become more international. It's a cash cow--they bankroll payroll deductions before IRS payments so they make the interest. 3.3% dividend yield. Stock fell way too fast, so here's an opportunity. (Analysts' price target $65.02)

TOP PICK
TOP PICK
February 1, 2018

They can benefit from the Trump tax breaks. This is number 2 and cater to the medium to small businesses. This is in the sweet spot for American growth. Great margins, 40% plus ROE and a 3% yield that they keep raising. (Analysts’ target: $69.35).

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Paychex (PAYX-Q)
February 1, 2018

They can benefit from the Trump tax breaks. This is number 2 and cater to the medium to small businesses. This is in the sweet spot for American growth. Great margins, 40% plus ROE and a 3% yield that they keep raising. (Analysts’ target: $69.35).

COMMENT
COMMENT
January 31, 2018

A payroll processing company. They typically focus on the smaller portions of the economy, small/medium size companies. This is a good Buy for a long-term hold. People who have owned this for a long period of time have done very well. Has a very strong balance sheet. Because companies have to pay employees in advance, they carry a float, and that float will earn increasingly higher returns with higher interest rates. It raises its dividend's very consistently. At this point, it is a little rich.

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Paychex (PAYX-Q)
January 31, 2018

A payroll processing company. They typically focus on the smaller portions of the economy, small/medium size companies. This is a good Buy for a long-term hold. People who have owned this for a long period of time have done very well. Has a very strong balance sheet. Because companies have to pay employees in advance, they carry a float, and that float will earn increasingly higher returns with higher interest rates. It raises its dividend's very consistently. At this point, it is a little rich.

PAST TOP PICK
PAST TOP PICK
January 29, 2018

(A Top Pick March 13/17. Up 12.73%.) A play on rising interest rates. For every quarter percent interest rates rise, this company, because they are a payroll processor, get to bank $4 billion of other people's money over the weekend, before remitting it to the payroll taxes. Because they were paying the top tax rate of 35%, and it has dropped to 21%, there may be a 50%-100% increase in the dividend in September.

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Paychex (PAYX-Q)
January 29, 2018

(A Top Pick March 13/17. Up 12.73%.) A play on rising interest rates. For every quarter percent interest rates rise, this company, because they are a payroll processor, get to bank $4 billion of other people's money over the weekend, before remitting it to the payroll taxes. Because they were paying the top tax rate of 35%, and it has dropped to 21%, there may be a 50%-100% increase in the dividend in September.

PAST TOP PICK
PAST TOP PICK
January 11, 2018

(A Top Pick March 13/17. Up 10%.) Basically does HR and payroll services. Every 2 weeks, when all these little companies have to remit their IRS payroll taxes, this company gets to grab $4 billion and park it over the weekend at rising interest rates. For every .25% interest rates rise in the US, this company makes free money of $3 million. They are catering to small-medium-sized businesses of 15 employees or less, so their business is picking up, revenues are growing and with tax cuts from 35% to 21%, it is going to release a lot of cash flow with an increasing dividend that could be as high as 50%.

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Paychex (PAYX-Q)
January 11, 2018

(A Top Pick March 13/17. Up 10%.) Basically does HR and payroll services. Every 2 weeks, when all these little companies have to remit their IRS payroll taxes, this company gets to grab $4 billion and park it over the weekend at rising interest rates. For every .25% interest rates rise in the US, this company makes free money of $3 million. They are catering to small-medium-sized businesses of 15 employees or less, so their business is picking up, revenues are growing and with tax cuts from 35% to 21%, it is going to release a lot of cash flow with an increasing dividend that could be as high as 50%.

PAST TOP PICK
PAST TOP PICK
July 27, 2017

(A Top Pick Aug 25/16. Up 1.4%.) On the interest rate rise, they made $3 million off the tax remittances which is about $4 billion every 2 weeks. Small businesses are usually the engine for the US growth and the economy. They have no debt and lots of cash flow. Dividend has been growing at roughly a 7%-10% clip.

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Paychex (PAYX-Q)
July 27, 2017

(A Top Pick Aug 25/16. Up 1.4%.) On the interest rate rise, they made $3 million off the tax remittances which is about $4 billion every 2 weeks. Small businesses are usually the engine for the US growth and the economy. They have no debt and lots of cash flow. Dividend has been growing at roughly a 7%-10% clip.

TOP PICK
TOP PICK
March 13, 2017

A payroll provider. ADP (ADP-Q) is the big one that deals with governments and large institutions, while this one deals with small businesses. If you are going to get any growth in the US through fiscal policy, the growth will come from small businesses of 15 to 50 employees. This does payroll and HR. What he really likes is that before they remit payments to the IRS every 2 weeks on payroll, they get to bank the money. For every .025% interest rate rise, they make $.01 a share to the bottom line, so if the Fed has 6 increases over the next 2 years, they are going to make $18 million. Dividend yield of 2.9%. (Analysts’ price target is $59.50.)

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Paychex (PAYX-Q)
March 13, 2017

A payroll provider. ADP (ADP-Q) is the big one that deals with governments and large institutions, while this one deals with small businesses. If you are going to get any growth in the US through fiscal policy, the growth will come from small businesses of 15 to 50 employees. This does payroll and HR. What he really likes is that before they remit payments to the IRS every 2 weeks on payroll, they get to bank the money. For every .025% interest rate rise, they make $.01 a share to the bottom line, so if the Fed has 6 increases over the next 2 years, they are going to make $18 million. Dividend yield of 2.9%. (Analysts’ price target is $59.50.)

PAST TOP PICK
PAST TOP PICK
November 14, 2016

(A Top Pick Aug 25/16. Down 6.51%.) This should work perfectly with a Trump government. They do all of the payroll processing, HR, 401K plans. They are really sticking with small businesses of 15 employees or less. Infrastructure and growth in the US is really going to start with the small businesses. This is really a cash cow.

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Paychex (PAYX-Q)
November 14, 2016

(A Top Pick Aug 25/16. Down 6.51%.) This should work perfectly with a Trump government. They do all of the payroll processing, HR, 401K plans. They are really sticking with small businesses of 15 employees or less. Infrastructure and growth in the US is really going to start with the small businesses. This is really a cash cow.

COMMENT
COMMENT
October 17, 2016

(Market Call Minute.) He likes the employment situation in the US. It is slowly improving. There are more people moving to full-time jobs, which is really bullish. This stock has pulled back into support and there should be strong support at around $54-$53. Trading at 25X next year’s earnings.

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Paychex (PAYX-Q)
October 17, 2016

(Market Call Minute.) He likes the employment situation in the US. It is slowly improving. There are more people moving to full-time jobs, which is really bullish. This stock has pulled back into support and there should be strong support at around $54-$53. Trading at 25X next year’s earnings.

DON'T BUY
DON'T BUY
August 31, 2016

There is an enormous amount of competition between this and Automatic Data Processing (ADP-Q). She sees competition as holding them both back. They are both trading at very high multiples in the upper 20s, and you are really not getting paid for it in growth. She doesn’t see this as attractive. Trading at 27X forward earnings.

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Paychex (PAYX-Q)
August 31, 2016

There is an enormous amount of competition between this and Automatic Data Processing (ADP-Q). She sees competition as holding them both back. They are both trading at very high multiples in the upper 20s, and you are really not getting paid for it in growth. She doesn’t see this as attractive. Trading at 27X forward earnings.

TOP PICK
TOP PICK
August 25, 2016

If interest rates were to rise, this is a payroll processor that gets to bank $3.5 billion of other people’s money over the weekend before they remit back to the IRS. For every .25% that interest rates rise, this makes $7.5 million in free money. On top of that, they also provide H&R services, time management, 401K programs as well as health benefit supplements under the Obama program, for all the small and medium-sized businesses. Have been growing at about 5%-6%, and are now starting to grow by 8%-10%, because non-payroll stuff has a greater growth platform. Dividend yield of 3%.

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Paychex (PAYX-Q)
August 25, 2016

If interest rates were to rise, this is a payroll processor that gets to bank $3.5 billion of other people’s money over the weekend before they remit back to the IRS. For every .25% that interest rates rise, this makes $7.5 million in free money. On top of that, they also provide H&R services, time management, 401K programs as well as health benefit supplements under the Obama program, for all the small and medium-sized businesses. Have been growing at about 5%-6%, and are now starting to grow by 8%-10%, because non-payroll stuff has a greater growth platform. Dividend yield of 3%.

SELL
SELL
July 10, 2015

He prefers ADP (ADP-Q). Both names have had a real run-up since the US unemployment situation started to improve. This one is basically 65% payroll and 35% HR services. Feels that most of the juice is out of the stock. PE is 26-30 times. Although the US economy is improving, the turning of the corner from recession/unemployment coming down has already taken place.

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Paychex (PAYX-Q)
July 10, 2015

He prefers ADP (ADP-Q). Both names have had a real run-up since the US unemployment situation started to improve. This one is basically 65% payroll and 35% HR services. Feels that most of the juice is out of the stock. PE is 26-30 times. Although the US economy is improving, the turning of the corner from recession/unemployment coming down has already taken place.

PAST TOP PICK
PAST TOP PICK
February 3, 2015

(A Top Pick Jan 30/14. Up 14.79%.) As interest rates rise, that will be a driver for earnings. Pays a dividend which increases fairly regularly. Has virtually no debt when you look at the balance sheet. 3.3% yield.

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Paychex (PAYX-Q)
February 3, 2015

(A Top Pick Jan 30/14. Up 14.79%.) As interest rates rise, that will be a driver for earnings. Pays a dividend which increases fairly regularly. Has virtually no debt when you look at the balance sheet. 3.3% yield.

TOP PICK
TOP PICK
May 15, 2014

A payroll processing company that is leveraged to the small and medium-size market. Leveraged to interest rates because of the payroll float it carries. Higher interest rates would be a catalyst for a higher range. Almost no debt. Good dividend of 3.46% that grows over time. A safe and steady slow growing story.

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Paychex (PAYX-Q)
May 15, 2014

A payroll processing company that is leveraged to the small and medium-size market. Leveraged to interest rates because of the payroll float it carries. Higher interest rates would be a catalyst for a higher range. Almost no debt. Good dividend of 3.46% that grows over time. A safe and steady slow growing story.

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