Paychex Stock Fair Value Calculator – Paychex Reports Non-GAAP EPS Beat, Revenue Misses Expectations
December 23, 2023
🌧️Trending News
Paychex ($NASDAQ:PAYX) Inc. (PAYX) recently reported its first-quarter results for the fiscal year 2021. The payroll and HR services provider reported Non-GAAP earnings per share (EPS) of $1.08, which was higher than the expected $1.07. Paychex is a leading provider of payroll, human resource, retirement, insurance, and benefits outsourcing solutions for small to medium-sized businesses. The company’s product portfolio includes payroll processing, payroll tax administration, employee benefits administration, workers’ compensation, human resource services, time and attendance management, and retirement plan solutions.
Overall, Paychex reported a strong first quarter with the Non-GAAP EPS beat, though revenue fell short of expectations. Investors will be looking to see if this trend continues in the upcoming quarters.
Earnings
In its earning report of FY2024 Q1 ending August 31 2021, PAYCHEX reported total revenue of 1082.9M USD, a 10.2% decrease from the same period in the prior year. Net income was reported at 333.6M USD, a 12.0% decrease from the prior year. Despite the decreases in total revenue and net income, PAYCHEX has seen an impressive growth over the last three years, with total revenue increasing from 1082.9M USD to 1286.0M USD.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Paychex. More…
| Total Revenues | Net Income | Net Margin |
| 5.15k | 1.63k | 31.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Paychex. More…
| Operations | Investing | Financing |
| 1.98k | -919 | 872 |
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 |
| 12.05k | 8.53k | 9.76 |
Key Ratios Snapshot
Some of the financial key ratios for Paychex are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.1% | 14.4% | 42.4% |
| FCF Margin | ROE | ROA |
| 35.5% | 38.4% | 11.3% |
Price History
Paychex, a leading provider of payroll, human resource, and benefits outsourcing solutions, reported its earnings for the fourth quarter of the fiscal year on Thursday. The report showed that the company had beaten analyst expectations for Non-GAAP earnings per share (EPS) but missed on revenue. Following this report, PAYCHEX stock opened at $122.2 but closed the day at $118.9, representing a 7.0% drop from its previous closing price of $127.9. This decrease in share price could be linked to the lower-than-expected revenue. Live Quote…
Analysis – Paychex Stock Fair Value Calculator
We at GoodWhale have conducted an analysis of PAYCHEX‘s wellbeing and our proprietary Valuation Line has determined that the intrinsic value of PAYCHEX share is around $126.2. This indicates that the current market price of $118.9 for PAYCHEX stock is slightly undervalued by 5.8%. We believe that this is a fair price and suggest that investors weigh their options before making any investment decisions. More…
Peers
The competition among Paychex Inc and its competitors is fierce. Each company is trying to offer the best products and services to their clients. They are all trying to stay ahead of the curve and be the best in the business.
– Automatic Data Processing Inc ($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 Inc. recently released its financial statements for the quarter, revealing earnings per share (EPS) of $1.08, which exceeded analyst expectations by one cent. Total revenue was $1.26 billion, missing estimates by $10 million. The stock price dropped on the news, suggesting investors were disappointed with the results. On an overall basis, analysts remain bullish on Paychex and view it as an attractive investment for the long term.
Analysts cite the company’s strong asset base, solid earnings growth, and wide range of services as key reasons to remain bullish. Paychex has been able to achieve consistent growth in its core businesses and continues to invest in new products and services. As such, analysts recommend that investors take a long-term view on this stock and consider it a low-risk option for the portfolios.
Related Posts
Recent Posts
