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Join in on the discussion with other like-minded investors in our community forums. Learn about the fundamental investing methodology and participate in educational workshops in the Investing forums, stay up-to-date on StockCentral news and make suggestions to the StockCentral team in Central Square, and discuss your favorite stock or recent market news in our A-Z ticker-based forums.
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Lynn Brown
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| 01/15/2007 9:36 PM |
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| Am I correct to assume competitors are Paychex and ADP? I have been research TALX - notice it has over 51% debt. Did they buy another smaller company last year so that the debt went up so high in one year? I haven't been able to pick up Value Line at library yet and my other sources haven't said much. I apologize for asking a simple question without completing research, but just thought as long as I was asking questions, might as well. |
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Doug Gerlach
Cambridge, MA
http://www.iclub.com/
President, ICLUBcentral
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| 01/18/2007 3:27 PM |
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Posted By Lynn Brown on 01/15/2007 9:36 PM
Am I correct to assume competitors are Paychex and ADP? I have been research TALX - notice it has over 51% debt. Did they buy another smaller company last year so that the debt went up so high in one year? I haven't been able to pick up Value Line at library yet and my other sources haven't said much. I apologize for asking a simple question without completing research, but just thought as long as I was asking questions, might as well.
Most data sources list these competitors:
ADP - Automatic Data Processing, Inc.
CEN - Ceridian Corporation
TSTF - TeamStaff Inc.
PAYX Paychex, Inc.
The company itself says that its competition is represented by the Nasdaq Computer and Data Processing Index.
These really don't represent TALX's competitors, though, since they are really just "similar companies" that can be used for comparative purposes. In the company's most recent 10-Q, they note "We are voluntarily responding to an inquiry by the Federal Trade Commission to assess whether our
acquisitions in the unemployment compensation and Work Number businesses have significantly reduced
competition." Obviously, that could be a problem if the FTC decides that they've done something wrong, but it does illustrate how TALX has been aggressively growing and is a leading figure in the niches that it serves.
As far as debt goes, TALX uses its borrowings to fund its acquisitions. Long-term debt has been increasing since their last fiscal year, but the company appears to have some relatively stringent conditions on how much it can borrow compared to EBITDA and other factors. So far, they seem to have been pretty smart about using the leverage to grow their business, and hopefully that will continue.
Doug
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Posting from ICLUBcentral world headquarters in the Harvard Square's historic College House, Cambridge, MA
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