0.79%
5.78%
4.71%
15.74%
20.94%
25.72%
68.32%
AI Spotlight on PAYX
Company Description
Paychex, Inc.provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small to medium-sized businesses in the United States, Europe, and India.It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.
The company also provides HR solutions, including payroll, employer compliance, HR and employee benefits administration, risk management outsourcing, and the on-site availability of a professionally trained HR representative; and retirement services administration, including plan implementation, ongoing compliance with government regulations, employee and employer reporting, participant and employer online access, electronic funds transfer, and other administrative services.In addition, it offers cloud-based HR administration software products for employee benefits management and administration, time and attendance, digital communication solutions, recruiting, and onboarding solutions; plan administration outsourcing and state unemployment insurance services; various business services to small to medium-sized businesses comprising payroll funding and outsourcing services, which include payroll processing, invoicing, and tax preparation; and payment processing services, financial fitness programs, and a small-business loan resource center.Further, the company provides insurance services for property and casualty coverage, such as workers' compensation, business-owner policies, cyber security protection, and commercial auto, as well as health and benefits coverage, including health, dental, vision, and life.
It markets and sells its services primarily through its direct sales force.The company was founded in 1971 and is headquartered in Rochester, New York.
Market Data
| Last Price | 148.05 |
| Change Percentage | 0.79% |
| Open | 147.21 |
| Previous Close | 146.89 |
| Market Cap ( Millions) | 53307 |
| Volume | 1465249 |
| Year High | 150.71 |
| Year Low | 114.72 |
| M A 50 | 142.53 |
| M A 200 | 131.92 |
Financial Ratios
| FCF Yield | 2.93% |
| Dividend Yield | 2.59% |
| ROE | 44.88% |
| Debt / Equity | 1.63% |
| Net Debt / EBIDTA | -46.98% |
| Price To Book | 13.58 |
| Price Earnings Ratio | 31.0 |
| Price To FCF | 34.16 |
| Price To sales | 9.93 |
| EV / EBITDA | 21.53 |
News
- Jan -23 - Reasons Why Investors Should Consider Buying Paychex Stock Now
- Jan -22 - G vs. PAYX: Which Stock Is the Better Value Option?
- Jan -20 - 3 Outsourcing Stocks to Consider Despite Industry Headwinds
- Jan -15 - Paycor HCM just downgraded at Truist, here's why
- Jan -10 - Paychex Declares Quarterly Dividend
- Jan -08 - Asure Software price target raised to $14 from $12.50 at Northland
- Jan -07 - Paycor HCM downgraded to Hold from Buy at Needham
- Jan -07 - Apax Funds to Sell Their Majority Stake in Paycor HCM, Inc. to Paychex, Inc.
- Dec -20 - Paychex: Payrolling In Profits, But Valuation Could Use A Check
- Dec -20 - Compared to Estimates, Paychex (PAYX) Q2 Earnings: A Look at Key Metrics
- Dec -19 - Why Paychex Stock Topped the Market Today
- Dec -19 - Paychex, Inc. (PAYX) Q2 2025 Earnings Call Transcript
- Dec -19 - Paychex Q2 Earnings & Revenues Surpass Estimates, Increase Y/Y
- Dec -19 - Paychex (PAYX) Tops Q2 Earnings and Revenue Estimates
- Dec -18 - Paychex to Report Q2 Earnings: Here's What You Should Expect
- Dec -17 - 3 of the Best Companies to Own in 2025 and Beyond
- Dec -16 - What Analyst Projections for Key Metrics Reveal About Paychex (PAYX) Q2 Earnings
- Dec -05 - Paychex, Inc. Schedules Second Quarter Fiscal 2025 Earnings Conference Call for December 19, 2024
- Dec -04 - G vs. PAYX: Which Stock Is the Better Value Option?
- Nov -26 - Here's Why Investors Should Retain Paychex Stock for Now
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Management Solutions
Expected Growth : 4.5 %
What the company do ?
Paychex Management Solutions provide HR, payroll, and benefits administration services to help businesses streamline operations and improve productivity.
Why we expect these perspectives ?
Paychex's Management Solutions growth is driven by increasing demand for HR outsourcing, expansion of PEO services, and strategic acquisitions. The company's investments in digital transformation, such as its mobile app and analytics platform, also contribute to growth. Additionally, the rise of the gig economy and need for compliance with complex regulations fuel demand for Paychex's solutions.
Segment n°2 -> Professional Employer Organization and Insurance Solutions
Expected Growth : 4.8 %
What the company do ?
Professional Employer Organization (PEO) and Insurance Solutions from Paychex, Inc. provide HR outsourcing, benefits administration, and workers' compensation insurance to small and medium-sized businesses.
Why we expect these perspectives ?
Paychex's Professional Employer Organization (PEO) and Insurance Solutions growth is driven by increasing demand for HR outsourcing, rising need for compliance and risk management, and expansion into new markets. Additionally, the company's investments in digital transformation, customer service, and strategic partnerships contribute to its 4.8% growth.
Segment n°3 -> Interest on Funds Held for Clients
Expected Growth : 3.2 %
What the company do ?
Interest on Funds Held for Clients from Paychex, Inc. refers to the interest earned on client funds held in trust by Paychex, a payroll processing company.
Why we expect these perspectives ?
The 3.2% growth in Interest on Funds Held for Clients from Paychex, Inc. is driven by increasing adoption of payroll processing services, expansion into new markets, and rising interest rates. Additionally, the company's focus on providing value-added services, such as HR and benefits administration, contributes to the growth.
Paychex, Inc. Products
| Product Range | What is it ? |
|---|---|
| Payroll Services | Paychex offers a comprehensive payroll processing service that includes payroll tax administration, compliance, and reporting. |
| Human Resource Services | Paychex provides a range of HR services, including employee onboarding, benefits administration, and compliance support. |
| Time and Attendance | Paychex offers a time and attendance system that allows employees to clock in and out, track hours worked, and manage time-off requests. |
| Retirement Services | Paychex offers a range of retirement plan services, including 401(k), IRA, and pension plan administration. |
| Workers' Compensation | Paychex provides workers' compensation insurance and claims administration services to help businesses manage workplace injuries and reduce costs. |
| Pay-as-You-Go Workers' Compensation | Paychex offers a pay-as-you-go workers' compensation insurance program that allows businesses to pay premiums based on actual payroll. |
| General Liability Insurance | Paychex provides general liability insurance to protect businesses from financial losses due to accidents, injuries, or property damage. |
| Employee Benefits | Paychex offers a range of employee benefits, including health, dental, vision, and life insurance, as well as Section 125 plans. |
Paychex, Inc.'s Porter Forces
Threat Of Substitutes
Paychex, Inc. has a low threat of substitutes due to its strong brand recognition and customer loyalty. The company's services are highly specialized, making it difficult for substitutes to enter the market.
Bargaining Power Of Customers
Paychex, Inc. has a medium bargaining power of customers due to the presence of a large number of customers. However, the company's strong brand recognition and customer loyalty mitigate the bargaining power of customers.
Bargaining Power Of Suppliers
Paychex, Inc. has a low bargaining power of suppliers due to its strong relationships with suppliers and its ability to negotiate favorable terms.
Threat Of New Entrants
Paychex, Inc. has a low threat of new entrants due to the high barriers to entry in the payroll processing industry. The company's strong brand recognition and customer loyalty also make it difficult for new entrants to gain traction.
Intensity Of Rivalry
Paychex, Inc. operates in a highly competitive industry, with several established players competing for market share. The company's strong brand recognition and customer loyalty help it to maintain its market position.
Strength
Capital Structure
| Value | |
|---|---|
| Debt Weight | 19.86% |
| Debt Cost | 3.95% |
| Equity Weight | 80.14% |
| Equity Cost | 8.58% |
| WACC | 7.66% |
| Leverage | 24.78% |
Paychex, Inc. : Quality Control
Paychex, Inc. passed 7 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| PCAR | PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, … |
| KFY | Korn Ferry, together with its subsidiaries, provides organizational consulting services worldwide. It operates through four segments: Consulting, Digital, Executive Search, and Recruitment Process Outsourcing (RPO) & Professional Search. The company … |
| BBSI | Barrett Business Services, Inc. provides business management solutions for small and mid-sized companies in the United States. The company develops a management platform that integrates a knowledge-based approach from the … |
| ADP | Automatic Data Processing, Inc. provides cloud-based human capital management solutions worldwide. It operates in two segments, Employer Services and Professional Employer Organization (PEO). The Employer Services segment offers strategic, cloud-based … |
| TDG | TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. Its Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
🥇
Barrett Business Services
A-Score
1-Year Total Return ->
🥈
Korn Ferry
A-Score
1-Year Total Return ->
🥉
Paychex
A-Score
1-Year Total Return ->
4
TransDigm Group
A-Score
1-Year Total Return ->
5
PACCAR
A-Score
1-Year Total Return ->
6
