Attractive stocks have exceptional fundamentals. In the case of Paychex, Inc. (NASDAQ:PAYX), there's is a well-regarded dividend-paying company that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Paychex here.
Excellent balance sheet established dividend payer
PAYX's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that PAYX manages its cash and cost levels well, which is a key determinant of the company’s health. PAYX's has produced operating cash levels of 1.6x total debt over the past year, which implies that PAYX's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For those seeking income streams from their portfolio, PAYX is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.9%.
For Paychex, I've put together three pertinent factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for PAYX’s future growth? Take a look at our free research report of analyst consensus for PAYX’s outlook.
- Historical Performance: What has PAYX's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PAYX? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.