Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, payroll and personnel services provider Paychex
With that in mind, let's take a closer look at Paychex's business and see what CAPS investors are saying about the stock right now.
Paychex facts
| Headquarters (Founded) | Rochester, N.Y. (1971) |
| Market Cap | $11.4 billion |
| Industry | Data processing and outsourced services |
| Trailing-12-Month Revenue | $2.2 billion |
| Management | Founder/Chairman Thomas Golisano CEO Martin Mucci |
| Return on Equity (Average, Past 3 Years) | 35.8% |
| Cash/Debt | $411.1 million / $0 |
| Dividend Yield | 4% |
| Competitors |
ADP Insperity TriNet Group |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 95% of the 1,519 members who have rated Paychex believe the stock will outperform the S&P 500 going forward.
Late last year, one of those Fools, scoobster007, nicely summed up the bull case for our community:
[Paychex] will outperform in both the short term (several months) and the longer term (3-4 years). It has no debt, expenses are in line, it keeps coming up with new ways to earn money either organically or through purchases. It is profitable and will become more so as it grows over the next several years. Once the economy starts to improve, it will do much better than the market for these reasons and also because it will begin to earn a lot more money on its "float"; that is the money it holds for its clients until it is time to pay their employees etc.
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