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Category: Paychex (PAYX)
Date: 7 April 2021 Stock price of Paychex (PAYX): $95.42 Market Capital of Paychex (PAYX): $34.4 billion We take a a look at the 3rd quarter 2021 earnings report of Paychex (PAYX) a leading provider of integrated human capital management solutions for human resources, payroll, benefits, and insurance services. By combining its innovative software-as-a service technology and mobility platform with dedicated, personal service
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We are extremely proud of what we have accomplished this year and how the strategic changes we have made to our business position us for accelerated growth across retail, wholesale and CarMax Auto Finance,” said Bill Nash, president and chief executive officer."
More About Paychex
Paychex, Inc. (Nasdaq:PAYX) is a leading provider of integrated human capital management solutions for human resources, payroll, benefits, and insurance services. By combining its innovative software-as-a service technology and mobility platform with dedicated, personal service, Paychex empowers small- and medium-sized business owners to focus on the growth and management of their business. Backed by more than 45 years of industry expertise, Paychex serves approximately 670,000 payroll clients as of May 31, 2019 across more than 100 locations in the U.S. and Europe, and pays one out of every 12 American private sector employees.
Overview of Paychex (PAYX) 3rd quarter 2021 earnings
FISCAL Q3 2021 HIGHLIGHTS
- Total service revenue decreased 2% to $1.1 billion.
- Total revenue decreased 3% to $1.1 billion.
- Operating income was comparable at $468.6 million.
- Diluted earnings per share and adjusted diluted earnings per share (1) each decreased 1% to $0.97 per share and $0.96 per share, respectively.
Paychex (PAYX) management commentary on their 3r quarter 2021 earnings
Martin Mucci, President and Chief Executive Officer, commented, “Client retention remains strong and at record levels, and our results for the third quarter show that our resilient business model has helped us navigate the uncertainties created by COVID-19. We continue to see progress in our key indicators and remain committed to providing our clients the flexibility, technology, and resources they need to respond and adapt to the uncertainties of the COVID-19 environment.”
Mucci added, “We’re anticipating client needs with solutions that prepare them for what’s next. Our sales, support, product development, and marketing teams carefully listen to customer feedback—bringing to market new tools and technology designed to efficiently manage payroll, staffing, time tracking, and scheduling. Demonstrating our commitment to innovate and meet our client’s needs, we were pleased to receive our fifth consecutive Stevie® Award as a 2021 winner for the Most Valuable COVID-19 Response. Paychex's multifaceted response included our comprehensive COVID-19 Help Center, state-specific resources, educational webinars, product innovations, in-app Paycheck Protection Program tools, specialized employee training, and more. This recognition speaks to the company’s ability to deliver innovative solutions and we will continue to focus on meeting the evolving needs of our clients and the business community.”
Mucci added, “We’re anticipating client needs with solutions that prepare them for what’s next. Our sales, support, product development, and marketing teams carefully listen to customer feedback—bringing to market new tools and technology designed to efficiently manage payroll, staffing, time tracking, and scheduling. Demonstrating our commitment to innovate and meet our client’s needs, we were pleased to receive our fifth consecutive Stevie® Award as a 2021 winner for the Most Valuable COVID-19 Response. Paychex's multifaceted response included our comprehensive COVID-19 Help Center, state-specific resources, educational webinars, product innovations, in-app Paycheck Protection Program tools, specialized employee training, and more. This recognition speaks to the company’s ability to deliver innovative solutions and we will continue to focus on meeting the evolving needs of our clients and the business community.”
Paychex (PAYX) stock price chart over the last 5 years
The image below shows the stock price history of Paychex (PAYX) over the last 5 years. And its been a good time for Paychex stockholders with the stock increasing by a strong 81.4% over the last 5 years. No investor would say no those type of returns.
The stock of Paychex is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of Paychex stock is positive at this point in time.
The stock of Paychex is trading at closer to its 52 week high than it is to its 52 week low which is a clear indication that the short term sentiment and momentum of Paychex stock is positive at this point in time.
MSC Industrial (MSM) stock price chart over the last 5 years
Latest stock valuation of Paychex (PAYX)
So what is Paychex (PAYX) stock worth based on their 3rd quarter 2021 earnings report? Based on their earnings report our valuation model provides a target price (full value price) for Paychex at $89 a stock
We therefore believe the stock of Paychex is slightly overvalued at its current price of $95.42
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $95.42 thus a good entry point into Paychex would be at $80.10 or below.
We expect the stock of Paychex to pull back slightly in coming weeks and months as the stock price of Paychex is slightly overvalued.
We therefore believe the stock of Paychex is slightly overvalued at its current price of $95.42
We usually recommend long term fundamental or value investors look to enter a stock at least 10% below our target price (full value price), which in this case is $95.42 thus a good entry point into Paychex would be at $80.10 or below.
We expect the stock of Paychex to pull back slightly in coming weeks and months as the stock price of Paychex is slightly overvalued.
Next earnings release of Paychex (PAYX)
It is expected that Paychex (PAYX) will release their 4th quarter and full fiscal 2021 earnings report in early July 2021
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