Earnings results for Paychex, Inc. (NASDAQ:PAYX)
Paychex, Inc. is expected* to report earnings on 10/06/2020 before market open. The report will be for the fiscal Quarter ending Aug 2020. According to Zacks Investment Research, based on 11 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.56. The reported EPS for the same quarter last year was $0.71.
Paychex last issued its quarterly earnings results on July 7th, 2020. The business services provider reported $0.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.60 by $0.01. The company earned $915.10 million during the quarter, compared to analysts’ expectations of $910.68 million. Its quarterly revenue was down 6.7% compared to the same quarter last year. Paychex has generated $3.00 earnings per share over the last year and currently has a price-to-earnings ratio of 26.8. Paychex has confirmed that its next quarterly earnings report will be published on Tuesday, October 6th, 2020.
Analyst Opinion on Paychex, Inc. (NASDAQ:PAYX)
11 Wall Street analysts have issued ratings and price targets for Paychex in the last 12 months. Their average twelve-month price target is $71.45, predicting that the stock has a possible downside of 12.27%. The high price target for PAYX is $84.00 and the low price target for PAYX is $55.00. There are currently 2 sell ratings and 9 hold ratings for the stock, resulting in a consensus rating of “Hold.”
Paychex has received a consensus rating of Hold. The company’s average rating score is 1.82, and is based on no buy ratings, 9 hold ratings, and 2 sell ratings. According to analysts’ consensus price target of $71.45, Paychex has a forecasted downside of 12.3% from its current price of $81.45. Paychex has been the subject of 6 research reports in the past 90 days, demonstrating strong analyst interest in this stock.
Dividend Strength: Paychex, Inc. (NASDAQ:PAYX)
Paychex pays a meaningful dividend of 3.12%, higher than the bottom 25% of all stocks that pay dividends. Paychex has been increasing its dividend for 6 years. The dividend payout ratio of Paychex is 82.67%. Payout ratios above 75% are not desirable because they may not be sustainable. Based on EPS estimates, Paychex will have a dividend payout ratio of 82.39% in the coming year. This indicates that Paychex may not be able to sustain their current dividend.
Insiders buying/selling: Paychex, Inc. (NASDAQ:PAYX)
In the past three months, Paychex insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $45,164,779.00 in company stock. Only 11.70% of the stock of Paychex is held by insiders. 69.85% of the stock of Paychex is held by institutions. High institutional ownership can be a signal of strong market trust in this company.
Earnings and Valuation of Paychex, Inc. (NASDAQ:PAYX
Earnings for Paychex are expected to grow by 9.45% in the coming year, from $2.75 to $3.01 per share. The P/E ratio of Paychex is 26.79, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 19.25. The P/E ratio of Paychex is 26.79, which means that it is trading at a less expensive P/E ratio than the Business Services sector average P/E ratio of about 40.43. Paychex has a PEG Ratio of 3.41. PEG Ratios above 1 indicate that a company could be overvalued. Paychex has a P/B Ratio of 10.51. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.
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