Core Insights - Fenimore Asset Management's Q4 2025 investor letter indicates a solid yet volatile stock market, influenced by AI enthusiasm, economic uncertainty, and monetary policy concerns [1] - The firm anticipates mixed market conditions in 2026, with many AI-related stocks appearing expensive while high-quality companies are trading at multi-year lows, presenting potential investment opportunities [1] Market Performance - The S&P 500 Index rose by 2.66% in Q4 2025, driven by large-cap technology and communication services stocks [1] - Fenimore Small Cap Strategy returned -4.12%, underperforming the Russell 2000 Index, which returned 2.19% [1] - Fenimore Dividend Focus Strategy declined by -4.41% compared to the Russell Midcap Index's 0.16% return [1] - Fenimore Value Strategy saw a decline of -1.17% against the Russell Midcap Index's 0.16% return [1] Company Focus: Paychex, Inc. - Paychex, Inc. (NASDAQ:PAYX) was highlighted as a key performance detractor in the Fenimore Dividend Focus Strategy [2] - As of January 15, 2026, Paychex, Inc. stock closed at $110.51, with a one-month return of -1.58% and a 52-week loss of 24.46% [2] - Paychex, Inc. has a market capitalization of $39.669 billion [2] Performance Analysis of Paychex, Inc. - Despite reporting strong earnings that exceeded expectations, Paychex, Inc. stock sold off by 10% due to economic concerns, impacting the near-term outlook [3] - Weak employment numbers for small and midsized businesses have pressured the stock [3]

Core Insights - Workday, Inc. (NASDAQ:WDAY) is recognized as one of the 12 Best Long Term US Stocks to Buy Now [1] - BTIG initiated coverage of Workday with a Buy rating and a price target of $285, citing a "de-risked" outlook for the stock [2] - Despite a 16% growth in annual subscription revenue and an 18% increase in free cash flow, Workday's stock has remained stagnant for about two years [2] - The stock has declined nearly 14% in 2025, amid concerns over generative AI tools disrupting established software companies [2] - Workday has responded to AI trends by launching several AI agents and making small acquisitions [2] Financial Performance - Workday closed a $1.1 billion acquisition of Sana, an AI-driven learning software firm, in early November [3] - For the fiscal year ending January 2026, Workday forecasts $8.83 billion in subscription revenue, indicating a growth of approximately 14.4% [3] - The updated revenue outlook increased by only $13 million from previous guidance issued in August [3] - Contributions to the updated revenue forecast include the acquisition of Sana and a contract with the US Defense Intelligence Agency [4] Company Overview - Workday is primarily known for its cloud-based software solutions utilized in finance, human resources, and student information systems [4]

Core Insights - Cegedim reported consolidated revenue of €322.5 million for H1 2025, reflecting a 1.1% increase year-on-year, with adjusted EBITDA rising to €61.2 million, a 17.2% increase [2][4][6] - The adjusted operating margin improved to 5.7% from 3.2% in 2024, indicating enhanced profitability across all divisions [2][4][9] Financial Performance - Revenue increased by €3.5 million, or 1.1%, from €319.0 million in H1 2024 to €322.5 million in H1 2025 [6] - Like-for-like revenue growth was reported at 2.8%, aligning with the Group's projections [6] - Adjusted EBITDA reached €61.2 million, representing 19.0% of revenue, up from 16.4% in the previous year [4][5] - Recurring operating income rose significantly by 63.2% to €16.9 million, compared to €10.3 million in H1 2024 [3][9] Cost Management - The increase in adjusted EBITDA was attributed to effective cost management, particularly in reducing external costs and optimizing workforce utilization [7] - Depreciation and amortization expenses increased slightly by €0.8 million, primarily due to higher R&D amortization [8] Division Performance - Revenue from the Software & Services division decreased by 5.1% to €144.4 million, while adjusted operating income improved to €1.9 million from a loss of €1.4 million [12][14] - The Flow division saw a revenue increase of 7.8%, driven by growth in digitalization services [16] - The Data & Marketing segment experienced robust growth, with revenue up 10.8% and adjusted operating income rising by 75.6% [22] Strategic Developments - Cegedim's decarbonization targets were validated by the Science Based Targets initiative (SBTi), reflecting the company's commitment to sustainability [18] - The Group transitioned its credit facility to a sustainability-linked loan, incorporating performance clauses related to ESG commitments [19] Future Outlook - The Group anticipates like-for-like revenue growth of 2-4% for 2025, with continued improvement in adjusted operating income expected [25]