Paychex, Inc. provides integrated human capital management solutions for payroll, benefits, human resource (HR), retirement, and insurance services for small- to medium-sized businesses in the United States and Europe.
No risks detected for PAYX from our risk checks.
Excellent balance sheet established dividend payer.
Share Price & News
How has Paychex's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PAYX has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: PAYX underperformed the US IT industry which returned 34.9% over the past year.
Return vs Market: PAYX matched the US Market which returned 18% over the past year.
Price Volatility Vs. Market
How volatile is Paychex's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall StA Look At The Fair Value Of Paychex, Inc. (NASDAQ:PAYX)
2 weeks ago | Simply Wall StIs Paychex, Inc.’s (NASDAQ:PAYX) 37% ROCE Any Good?
3 weeks ago | Simply Wall StIs It Worth Considering Paychex, Inc. (NASDAQ:PAYX) For Its Upcoming Dividend?
Is Paychex undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: PAYX ($89.05) is trading above our estimate of fair value ($78.79)
Significantly Below Fair Value: PAYX is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: PAYX is good value based on its PE Ratio (29.6x) compared to the IT industry average (31.4x).
PE vs Market: PAYX is poor value based on its PE Ratio (29.6x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: PAYX is poor value based on its PEG Ratio (4.2x)
Price to Book Ratio
PB vs Industry: PAYX is overvalued based on its PB Ratio (12.4x) compared to the US IT industry average (4.2x).
How is Paychex forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PAYX's forecast earnings growth (7% per year) is above the savings rate (1.7%).
Earnings vs Market: PAYX's earnings (7% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: PAYX's earnings are forecast to grow, but not significantly.
Revenue vs Market: PAYX's revenue (5.3% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: PAYX's revenue (5.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PAYX's Return on Equity is forecast to be very high in 3 years time (41.1%).
How has Paychex performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PAYX has high quality earnings.
Growing Profit Margin: PAYX's current net profit margins (26.7%) are lower than last year (30.4%).
Past Earnings Growth Analysis
Earnings Trend: PAYX's earnings have grown by 10.7% per year over the past 5 years.
Accelerating Growth: PAYX's earnings growth over the past year (1.3%) is below its 5-year average (10.7% per year).
Earnings vs Industry: PAYX earnings growth over the past year (1.3%) underperformed the IT industry 12%.
Return on Equity
High ROE: PAYX's Return on Equity (42%) is considered outstanding.
Return on Assets
Return on Capital Employed
How is Paychex's financial position?
Financial Position Analysis
Short Term Liabilities: PAYX's short term assets ($5.6B) exceed its short term liabilities ($4.8B).
Long Term Liabilities: PAYX's short term assets ($5.6B) exceed its long term liabilities ($1.3B).
Debt to Equity History and Analysis
Debt Level: PAYX's debt to equity ratio (33%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if PAYX's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: PAYX's debt is well covered by operating cash flow (157.9%).
Interest Coverage: PAYX's interest payments on its debt are well covered by EBIT (67.9x coverage).
Inventory Level: PAYX has a low level of unsold assets or inventory.
Debt Coverage by Assets: PAYX's debt is covered by short term assets (assets are 6.6x debt).
What is Paychex's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: PAYX's dividend (2.78%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: PAYX's dividend (2.78%) is low compared to the top 25% of dividend payers in the US market (3.73%).
Stability and Growth of Payments
Stable Dividend: PAYX's dividends per share have been stable in the past 10 years.
Growing Dividend: PAYX's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (80.6%), PAYX's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PAYX's dividends in 3 years are forecast to be covered by earnings (75.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Marty Mucci (59yo)
Mr. Martin Mucci has been the Chief Executive Officer and President of Paychex, Inc. since September 30, 2010. Mr. Mucci served as the Senior Vice President of Operations at Paychex Inc., since October 200 ...
CEO Compensation Analysis
Compensation vs Market: Marty's total compensation ($USD7.93M) is about average for companies of similar size in the US market ($USD10.79M).
Compensation vs Earnings: Marty's compensation has been consistent with company performance over the past year.
|Founder & Chairman||15.3yrs||US$326.25k||10.48% $3.4b|
|Senior VP||8.7yrs||US$2.40m||0.016% $5.3m|
|Senior Vice President of Sales||8.3yrs||US$1.96m||0.017% $5.5m|
|Senior VP of Product Development & Information Technology||8.6yrs||US$2.03m||0.019% $6.1m|
|Senior Vice President of Service||6.8yrs||US$1.98m||0.0093% $3.0m|
|VP of Service Excellence & Operations||0.9yrs||no data||no data|
|Investor Relations||0yrs||no data||no data|
|VP, Chief Legal Officer & Corporate Secretary||14.1yrs||no data||0.014% $4.6m|
|VP of Risk||3.1yrs||no data||no data|
Experienced Management: PAYX's management team is seasoned and experienced (8.5 years average tenure).
|Founder & Chairman||15.3yrs||US$326.25k||10.48% $3.4b|
|Lead Independent Director||0yrs||US$269.79k||0.014% $4.5m|
|Independent Director||9.3yrs||US$255.54k||0.0055% $1.8m|
|Independent Director||1.8yrs||US$289.76k||0.0019% $607.9k|
|Independent Director||21.1yrs||US$290.04k||0.013% $4.1m|
|Independent Director||13.1yrs||US$266.54k||0.0090% $2.9m|
|Independent Director||3.1yrs||US$255.54k||0.0038% $1.2m|
|Independent Director||2.6yrs||US$255.54k||0.00090% $291.0k|
Experienced Board: PAYX's board of directors are considered experienced (9.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PAYX insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Paychex, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Paychex, Inc.
- Ticker: PAYX
- Exchange: NasdaqGS
- Founded: 1979
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Market Cap: US$32.337b
- Shares outstanding: 358.39m
- Website: https://www.paychex.com
Number of Employees
- Paychex, Inc.
- 911 Panorama Trail South
- New York
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|PAYX||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Aug 1983|
|PCX||XTRA (XETRA Trading Platform)||Yes||Common Stock||DE||EUR||Aug 1983|
|PCX||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Aug 1983|
|PAYX||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||Aug 1983|
|P1AY34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 2 REPR 1 SHS UNSPON||BR||BRL||Jan 2020|
Paychex, Inc. provides integrated human capital management solutions for payroll, benefits, human resource (HR), retirement, and insurance services for small- to medium-sized businesses in the United States and Europe. The company offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing. It also provides HR outsourcing services, 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, the company offers cloud-based HR administration software products for employee benefits management and administration, time and attendance, recruiting, and onboarding solutions; various accounting and financial services to small to medium-sized businesses comprising payroll funding and outsourcing services, which include payroll processing, invoicing, and tax preparation; and various services, such as payment processing services, financial fitness programs, and a small-business loan resource center. Further, it provides insurance services for property and casualty coverage, such as workers’ compensation, business-owner policies, and commercial auto, as well as health and benefits coverage, including health, dental, vision, and life; and state unemployment insurance services, which allows clients with prompt processing for all claims, appeals, determinations, change statements, and requests for separation documents. The company markets its products and services through direct sales force. Paychex, Inc. was founded in 1979 and is headquartered in Rochester, New York.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/22 00:30|
|End of Day Share Price||2020/02/21 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.