Paychex Stock Performance

PAYX
 Stock
  

USD 123.21  0.05  0.0406%   

The company holds a Beta of 1.1016, which implies a somewhat significant risk relative to the market. Let's try to break down what Paychex's beta means in this case. Paychex returns are very sensitive to returns on the market. As the market goes up or down, Paychex is expected to follow. Although it is important to respect Paychex current trending patterns, it is better to be realistic regarding the information on the equity's existing price patterns. The philosophy towards forecasting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Paychex technical indicators, you can presently evaluate if the expected return of 0.0123% will be sustainable into the future. Paychex right now holds a risk of 1.72%. Please check Paychex standard deviation, as well as the relationship between the value at risk and kurtosis to decide if Paychex will be following its historical price patterns.
  
Paychex Performance
0 of 100
Over the last 90 days Paychex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Paychex is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors. ...more

Structure and Payout Changes

Forward Annual Dividend Yield
0.0256
Payout Ratio
0.78
Last Split Factor
3:2
Forward Annual Dividend Rate
3.16
Dividend Date
2022-11-23
Ex Dividend Date
2022-11-08

Paychex Price Channel

Quick Ratio0.55
Fifty Two Week Low105.66
Target High Price140.00
Fifty Two Week High141.92
Payout Ratio73.05%
Trailing Annual Dividend Yield2.35%
Target Low Price112.21

Paychex Relative Risk vs. Return Landscape

If you would invest  12,338  in Paychex on August 30, 2022 and sell it today you would lose (17.00)  from holding Paychex or give up 0.14% of portfolio value over 90 days. Paychex is currently generating 0.0123% in daily expected returns and assumes 1.7211% risk (volatility on return distribution) over the 90 days horizon. In different words, 14% of stocks are less volatile than Paychex, and 99% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon.
  Daily Expected Return (%)  
       Risk (%)  
Given the investment horizon of 90 days Paychex is expected to generate 10.75 times less return on investment than the market. In addition to that, the company is 1.25 times more volatile than its market benchmark. It trades about 0.01 of its total potential returns per unit of risk. The DOW is currently generating roughly 0.1 per unit of volatility.

Paychex Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Paychex's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Paychex, and traders can use it to determine the average amount a Paychex's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.0072

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Negative ReturnsPAYX
Estimated Market Risk
 1.72
  actual daily
 
 14 %
of total potential
 
1414
Expected Return
 0.01
  actual daily
 
 0 %
of total potential
 
00
Risk-Adjusted Return
 0.01
  actual daily
 
 0 %
of total potential
 
00
Based on monthly moving average Paychex is performing at about 0% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Paychex by adding it to a well-diversified portfolio.

About Paychex Performance

To evaluate Paychex Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Paychex generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Paychex Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Paychex market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Paychex's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2022
Return on Investment 48.14  56.56 
Return on Average Assets 14.77  12.55 
Return on Average Equity 46.17  40.90 
Return on Invested Capital 1.04  1.11 
Return on Sales 0.42  0.41 

Things to note about Paychex

Checking the ongoing alerts about Paychex for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Paychex help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

Paychex Alerts

Equity Alerts and Improvement Suggestions

Paychex is unlikely to experience financial distress in the next 2 years
Paychex has a frail financial position based on the latest SEC disclosures
About 73.0% of the company shares are owned by institutional investors
On 23rd of November 2022 Paychex paid $ 0.79 per share dividend to its current shareholders
Latest headline from news.google.com: With EPS Growth And More, Paychex Makes An Interesting Case - Yahoo Finance UK
Please check Your Equity Center. You can also try Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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Is Paychex's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Paychex. If investors know Paychex will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Paychex listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.14
Market Capitalization
44.4 B
Quarterly Revenue Growth YOY
0.11
Return On Assets
0.13
Return On Equity
0.47
The market value of Paychex is measured differently than its book value, which is the value of Paychex that is recorded on the company's balance sheet. Investors also form their own opinion of Paychex's value that differs from its market value or its book value, called intrinsic value, which is Paychex's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Paychex's market value can be influenced by many factors that don't directly affect Paychex's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Paychex's value and its price as these two are different measures arrived at by different means. Investors typically determine Paychex value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Paychex's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.