Paychex Intrinsic Stock Value – PAYCHEX Announces Strong Financials for Q1 of FY2024
October 21, 2023
☀️Earnings Overview
On August 31 2023, PAYCHEX ($NASDAQ:PAYX) reported their earnings results for Q1 of FY2024, which ended the same day. Total revenue for the quarter was an increase of 6.6% year-on-year, totaling USD 1286.0 million. Net income for the period was also up 10.5% from the previous year, with USD 419.2 million.
Stock Price
On Wednesday, PAYCHEX announced strong financials for the first quarter of their Fiscal Year 2024. The positive news caused the share price to open at $112.5 and close at $116.5, marking a 3.4% increase from the previous closing price of $112.7. This historical change in stock price marks a successful start to the fiscal year for PAYCHEX. Analysts and investors have lauded the financial performance of the company in light of the current economic environment. The strong financials provided a basis for further success through the rest of Fiscal Year 2024, and many are optimistic about the future of PAYCHEX.
The stock’s performance on Wednesday was an indication of investor confidence in the company’s ability to continue strong performances and generate steady returns. Moving forward, PAYCHEX will continue to focus on delivering strong financials and creating positive returns for its shareholders. The company is confident that it can continue to capitalize on the opportunities available in the current market and maintain its performance going into the next quarter. With this positive outlook, investors can expect the stock to remain robust throughout Fiscal Year 2024. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Paychex. More…
| Total Revenues | Net Income | Net Margin |
| 5.09k | 1.6k | 31.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Paychex. More…
| Operations | Investing | Financing |
| 1.99k | -980.6 | 1.17k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Paychex. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 12.2k | 8.61k | 9.94 |
Key Ratios Snapshot
Some of the financial key ratios for Paychex are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.5% | 14.1% | 41.7% |
| FCF Margin | ROE | ROA |
| 36.2% | 37.4% | 10.9% |
Analysis – Paychex Intrinsic Stock Value
We at GoodWhale recently conducted an analysis of PAYCHEX‘s wellbeing. After careful review, our proprietary Valuation Line determined the fair value of PAYCHEX shares to be around $124.0. Currently, PAYCHEX stock is being traded at $116.5, a price that is undervalued by 6.1% when compared to our valuation. This presents an interesting opportunity for potential investors to buy the stock at a discounted price. More…
Peers
The competition among Paychex Inc and its competitors is fierce. Each company is trying to offer the best products and services to their clients. They are all trying to stay ahead of the curve and be the best in the business.
– Automatic Data Processing Inc ($NASDAQ:ADP)
Automatic Data Processing, Inc. (Nasdaq: ADP), a leading global provider of Human Capital Management (HCM) solutions, has a market cap of 101.65B as of 2022 and a Return on Equity of 86.78%. ADP offers a comprehensive suite of HCM solutions that helps organizations of all sizes unlock the power of their people to drive business success. From payroll and tax to talent management and benefits administration, ADP’s HCM solutions are designed to help organizations streamline HR processes, improve employee engagement and enable leaders to make better decisions.
– Trinet Group Inc ($NYSE:TNET)
Trinet Group, Inc. is a human resources outsourcing company. The Company provides a range of services, including multi-state payroll processing, human capital management, benefits administration, and compliance with regulatory and government reporting requirements. It offers a suite of online tools and services that enable clients to manage their human resources, benefits, and payroll functions. The Company serves clients in a range of industries, including healthcare, retail, hospitality, and technology.
– Allegiant Professional Business Services Inc ($OTCPK:APRO)
Allegiant Professional Business Services Inc is a provider of professional services. It has a market cap of 42.96k as of 2022. The company offers a range of services including accounting, taxation, and financial advisory. It also provides consulting services on mergers and acquisitions, and business strategy.
Summary
PAYCHEX reported impressive financial results for its first quarter of FY2024, with total revenue increasing 6.6% year-on-year and net income rising 10.5%. This positive news was reflected in the stock price, which moved up following the announcement. As an investment, PAYCHEX appears to be a solid option, providing consistent growth and a strong dividend yield. The company is well-positioned to continue its strong performance into the future, making it a worthwhile consideration for investors looking for reliable returns.
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