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.

• $ANET (+3,13 %)
• 
  $V (+1,56 %)
• 
  $WISE (+0,76 %)
• 
  $TSM (+1,13 %)
• 
  $MELI (-3,61 %)
• 
  $FICO (+0,63 %)
• 
  $KLAC (+2,59 %)
• 
  $ADP (+0,61 %)
• 
  $GOOGL (+3,98 %)
• 
  $AMAT (+1,79 %)
• 
  $MPWR (+1,34 %)
• 
  $RACE (+0,93 %)
• 
  $NEM (+1,25 %)
• 
  $ISRG (+0,24 %)
• 
  $TEAM (-1,07 %)
• 
  $ITX (+1,65 %)
• 
  $CRWD (+2,04 %)

$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

$PAYC (+1,13 %)

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.

Sparplan

Sparplan