tag:blogger.com,1999:blog-8639258474795739446.post4166566969687065138..comments2023-06-26T00:37:56.378-07:00Comments on Manzanita Drive: Paychex Inc: $PAYX cash flow valuationEric Cotahttp://www.blogger.com/profile/01550847614110321622noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8639258474795739446.post-8844138909554075562011-04-07T01:03:01.460-07:002011-04-07T01:03:01.460-07:00Hi John:
Thanks for the comment. I like the busi...Hi John:<br /><br />Thanks for the comment. I like the business, the FCF and the yield. <br /><br />Morningstar's take: Paychex was formed through the consolidation of 17 payroll processing companies in 1979. It has been one of the most successful human resources outsourcing firms in the United States. The minimal amount of capital required for operations and the firm's significant competitive advantages have allowed it to produce returns on invested capital that have averaged 70% over the past 10 years. High customer switching costs, inherent scalability, and a respected brand image are the main drivers of the firm's wide economic moat, and we believe they form a potent combination that will last for some time to come.<br /><br />I wonder if the firm might be just a little bit overpriced here given the state of the U.S. economy and tough conditions for small businesses.Eric Cotahttps://www.blogger.com/profile/01550847614110321622noreply@blogger.comtag:blogger.com,1999:blog-8639258474795739446.post-120266680376383682011-04-07T00:28:54.142-07:002011-04-07T00:28:54.142-07:00Both scenario is so different than each other. Thi...Both scenario is so different than each other. This seems a big change in industry.<br />-<a href="http://www.dcgla.com/" rel="nofollow">IT outsourcing Los Angeles</a>JS Grame-Smith https://www.blogger.com/profile/08044980824246466664noreply@blogger.com