In this post I’m sharing with you my Watchlist. Stocks that I would like to buy if the price is right. What is your opinion on this watchlist? Feel free to share yours with me and everyone too.
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44$ADP (+0.61%) continued its growth momentum in Q2 FY25, driven by strong demand for HCM solutions, increased new business bookings, and higher client funds interest revenue. The company achieved record client satisfaction levels and increased its dividend for the 50th consecutive year.
📊 Income Statement Highlights (YoY Growth)
Key Metrics:
▫ Net Income: $963M vs. $878M (+10%)
▫ Total Revenue: $5.05B vs. $4.67B (+8%)
▫ Adjusted EPS: $2.35 vs. $2.13 (+10%)
▫ Gross Margin: 25.2% vs. 24.6% (+60 bps)
▫ Operating Income: $1.3B vs. $1.15B (+11%)
▫ Non-GAAP Operating Margin: 25.2% vs. 24.6%
▫ GAAP Operating Margin: 25.0% vs. 24.5%
▫ Operating Cash Flow: $1.97B vs. $1.36B (+45%)
▫ Free Cash Flow: Not explicitly stated
Employer Services Segment:
▫ Revenue: $3.39B (+8%)
▫ Segment Margin: 34.9% vs. 34.0% (+90 bps)
▫ U.S. Pays per Control: +1%
PEO (Professional Employer Organization) Services Segment:
▫ Revenue: $1.66B (+8%)
▫ Worksite Employees: 746K vs. 725K (+3%)
▫ Segment Margin: 15.1% vs. 16.5% (-140 bps)
Interest on Client Funds:
▫ Interest Revenue: $273M (+21%)
▫ Average Client Funds Balance: $35.3B (+8%)
▫ Interest Yield on Client Funds: 3.1% (+30 bps)
💼 Balance Sheet Highlights (vs. June 30, 2024)
▫ Total Assets: $64.10B vs. $54.36B
▫ Total Liabilities: $59.02B vs. $49.82B
▫ Equity: $5.08B vs. $4.55B
▫ Cash & Equivalents: $2.22B vs. $2.91B
▫ Funds Held for Clients: $47.41B vs. $38.00B
▫ Debt: $2.98B vs. $2.99B
🔮 Future Outlook (FY25 Guidance)
▫ Revenue Growth: 6-7%
▫ Adjusted EBIT Margin Expansion: +30 to 50 bps
▫ Adjusted Diluted EPS Growth: 7-9%
▫ Employer Services Revenue Growth: 6-7%
▫ PEO Services Revenue Growth: 5-6%
▫ Interest on Client Funds: $1.14B to $1.16B
Key Growth Drivers:
✅ Continued demand for HCM solutions
✅ Strength in Employer Services & PEO Services
✅ Higher interest revenue on client funds
✅ Operational investments to drive long-term growth
Out with the critters and into the $HMWO (+1.46%)
All securities have been sold:
Reason: Due to time constraints away from individual stocks and towards ETFs
Easier said than done: You have put time and effort into the analysis and have gone through ups and downs with them.
It's hard for me, but well, it doesn't help
Paycom reached a 52 week low at 142.6$.
The same price it was trading in 2018, not even during the covid-pandemic it was trading this cheap.
However, since 2018 the revenue tripled, the proftis more than doubled, the free cash flow almost tripled and their market share increased facing giants like $ADP (+0.61%) and $PAYX (+0.54%) .
In a few weeks is gonna be my birthday, thank you Mr. Market for this anticipated gift.
Yes indeed too much noordusa always had a lot of interest in it, so I want to $NN (+0.51%) buy and $ASRNL (-0.12%)
add on and add to the euro div etf to spread something outside USA. Also $KPN (-0.57%)
and $WKL (+0.06%) seem interesting to me. I am indeed trying to keep under 10% by own money, but if by growth I get above that, I would be fine with that. (Let your runners run)
Growth indeed I am looking at: $SBUX (+3.9%) and $CMI
$DE (+2.46%)
$HSY (-0.08%)
$TRV (+1.46%)
$APD (+1.76%)
$MCO (+0%)
$ADP (+0.61%)
But also for a little more dividend $MAA (+0.5%)
$TD (+0.26%)
$AFL (+1.89%)
$AVB (+0.56%)
Main I bought when it was very low and interest rates were also very low, so so the risk was much less. Only bought once. I may well stay away from this for a long time and use the dividend for the dividend snowball.
Otherwise quite difficult to stick with these boring and safe stocks, but this is what I like and sleep best with. (Slow but "sure")
Fantastic explanation everything was indeed correct how I think about it and this helps me tremendously to persevere, thank you Paul.
Thanks for your review: https://youtu.be/7-xomL4oDBM?si=v-JueJwSOVPHQeYZ
I'm curious what you guys think of this YouTube money tree show
For reasons of transparency and that one does not only make profits with levers:
$ADP (+0.61%) closed today with -53%. The 208$ were my SL and that was triggered.
Still open:
Still $NOC (+0.73%) the colleague can not really decide.
And $NDAQ (+2.42%) where here since Friday again strength came in from the side of the buyers 📈
I have taken a new position in my portfolio. I personally find it very interesting.
It is a service provider of payroll accounting, so that companies can outsource their HR departments, for example. The business model is similar to that of $ADP (+0.61%) but ADP is much too expensive for me at the moment. Paychex is the smaller company, growing reasonably and currently just under 2.5% dividend with a dividend growth rate of around 9% over the last 10 years.
Paychex is not really cheap either but I am convinced of the quality. The ROCE of about 40% is also impressive.
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