Paychex, Inc. ($PAYX) Confident Investor Rating: Poor

Company name Paychex, Inc.
Stock ticker PAYX
Live stock price [stckqut]PAYX[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Poor
P/E growth Poor
EBIT growth Poor

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $25.45
Target stock price (averages with growth) $31.33
Target stock price (averages with no growth) $29.72
Target stock price (manual assumptions) $29.51

The following company description is from Google Finance: http://www.google.com/finance?q=payx

Paychex, Inc. is a provider of payroll, human resource, and benefits outsourcing solutions for small to medium-sized businesses. As of May 31, 2012, the Company serviced approximately 567,000 clients, including approximately 2,000 clients through four offices in Germany. The Company offers a portfolio of services and products that allows its clients to meet their diverse payroll and human resource needs. These include payroll processing; payroll tax administration services; employee payment services; regulatory compliance services (new-hire reporting and garnishment processing); Paychex HR Solutions; retirement services administration; insurance services; eServices, and other human resource services and products. In January 2012, the Company acquired Icon Time Systems, Inc. In December 2012, the Company acquired ExpenseWire from Rearden Commerce Inc.

 

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in this stock.

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