Paychex moved -0.5% this afternoon session, trading between a high of $122.235 and a low of $120.74 per share. Yesterday the stock finished at $122.4 per share, compared to an average analyst target price of $120.53.
Paychex, Inc. provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small to medium-sized businesses in the United States, Europe, and India. The large-cap business services company is based in the United States, and over the last twelve months it has returned a dividend yield of 2.7%. Paychex has trailing twelve months earnings per share (EPS) of 4.3, which at today's prices amounts to a price to earnings (P/E) ratio of 28.3.
Based on its expected future earnings growth, the company has a price to earnings growth (PEG) ratio of 2.94. Usually a PEG ratio between 0 and 1 indicates a potentially undervalued company.
Overview of the Company's Gross Margins:
| Date Reported | Revenue ($ k) | Cost of Revenue ($ k) | Gross Margins (%) | YoY Growth (%) |
|---|---|---|---|---|
| 2022-07-15 | 4,611,700 | -1,356,300 | 71 | 2.9 |
| 2021-07-16 | 4,056,800 | -1,271,200 | 69 | 1.47 |
| 2020-07-17 | 4,040,500 | -1,280,800 | 68 | -1.45 |
| 2019-07-24 | 3,772,500 | -1,177,800 | 69 | -1.43 |
| 2018-07-20 | 3,380,900 | -1,017,800 | 70 | -1.41 |
| 2017-07-21 | 3,151,300 | -919,600 | 71 |
At 69.7%, Paychex's average gross margins are wider than the 31.2% average of its industry peer group, which suggests that the firm might have a competitive advantage.
