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PAYX

Paychex NasdaqGS:PAYX Stock Report

Last Price

US$112.21

Market Cap

US$40.4b

7D

-2.4%

1Y

-2.6%

Updated

01 Oct, 2022

Data

Company Financials +
PAYX fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance5/6
Financial Health5/6
Dividends5/6

PAYX Stock Overview

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.

Paychex, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Paychex
Historical stock prices
Current Share PriceUS$112.21
52 Week HighUS$141.92
52 Week LowUS$109.87
Beta0.99
1 Month Change-9.69%
3 Month Change-3.57%
1 Year Change-2.55%
3 Year Change33.03%
5 Year Change76.38%
Change since IPO14,647.79%

Recent News & Updates

Sep 27

Paychex Q1 2023 Earnings Preview

Paychex (NASDAQ:PAYX) is scheduled to announce Q1 earnings results on Wednesday, September 28th, before market open. The consensus EPS Estimate is $0.97 (+9.0% Y/Y) and the consensus Revenue Estimate is $1.17B (+8.0% Y/Y). Over the last 2 years, PAYX has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time. Over the last 3 months, EPS estimates have seen 3 upward revisions and 5 downward. Revenue estimates have seen 6 upward revisions and 0 downward. Recent earnings Analysis from our contributors:Paychex: Expensive Stock, But The Options Market And Chart Present A Bullish Opportunity

Sep 26
Paychex, Inc.'s (NASDAQ:PAYX) Intrinsic Value Is Potentially 33% Above Its Share Price

Paychex, Inc.'s (NASDAQ:PAYX) Intrinsic Value Is Potentially 33% Above Its Share Price

How far off is Paychex, Inc. ( NASDAQ:PAYX ) from its intrinsic value? Using the most recent financial data, we'll take...

Sep 13

Paychex: Expensive Stock, But The Options Market And Chart Present A Bullish Opportunity

Summary Not all IT stocks are down big in 2022 with lower-beta corporate services names weathering market storms this year. One payroll provider features a year-long trading range and trades at an expensive valuation. The options market and technical situation suggest possible near-term stock price upside ahead of and through earnings. Some payroll and accounting-related IT services stocks have weathered the tumultuous year of 2022 well. Paychex, Inc (NASDAQ:PAYX) has beaten not only the S&P 500 Trust ETF (SPY) but also its sector fund - the Select Sector SPDR Technology ETF (XLK) - handily year-to-date. The company has an earnings date in about two weeks, and the options market is not expecting a big reaction. I outline a trading idea and go through the longer-term valuation situation with this household name. PAYX Beating SPY & XLK YTD Stockcharts.com According to Bank of America Global Research, Paychex is the second-largest provider of payroll, human resources, and benefits outsourcing solutions in the U.S. Clients are primarily small- to medium-sized businesses. The company offers comprehensive payroll services, including payroll processing, payroll tax administration, and employee pay services. It also provides HR solutions, such as 401(k) and retirement services. The $46 billion market cap Rochester, NY-based IT Services industry company in the Information Technology sectors trades at a high 33.2 trailing 12-month GAAP price-to-earnings ratio and pays a 2.5% dividend yield, according to The Wall Street Journal. Competitors like Automatic Data Processing (ADP) and Intuit Inc (INTU) also trade at lofty P/E ratios. The company reported a strong quarter back in late June and has an upcoming earnings report later this month. Paychex's current valuation should turn somewhat cheaper if BofA's earnings outlook verifies. EPS is seen as improving by a solid 24% this year, but then moderating to the 6% to 10% range through 2024. Its dividend is expected to go up by more than 10% from 2022 through next year. The stock trades at a high EV/EBITDA multiple while its free cash flow yield is steady, but not too impressive. Overall, the stock looks expensive here, but is there a play ahead of earnings? PAYX Earnings, Valuation, and Dividend Forecasts BofA Global Research According to Wall Street Horizon, PAYX has a confirmed Q1 2023 earnings date of Wednesday, September 28 BMO with an earnings call to follow. You can listen live here. Key corporate events continue with a shareholder meeting a month from now on Thursday, October 13 followed by a projected Q2 reporting date of Wednesday, December 21 BMO. Corporate Event Calendar Wall Street Horizon The Options Angle Digging into the earnings report later this month, data from Option Research & Technology Services (ORATS) show an implied stock price move of just 4.0% post-earnings using the nearest-expiring at-the-money options. That's about in line with expected swings in previous reports given muted recent reactions. I think that being long options into earnings makes sense as traders may have become too comfortable with low volatility of late in PAYX. Analysts expect $0.97 of per-share earnings, which would be a solid increase as was reported in the same quarter last year. ORATS also notes that there have been five analyst upgrades of the stock since the previous report - a big number.

Sep 12
Should You Investigate Paychex, Inc. (NASDAQ:PAYX) At US$127?

Should You Investigate Paychex, Inc. (NASDAQ:PAYX) At US$127?

Let's talk about the popular Paychex, Inc. ( NASDAQ:PAYX ). The company's shares saw a decent share price growth in the...

Shareholder Returns

PAYXUS ITUS Market
7D-2.4%-2.7%-2.5%
1Y-2.6%-39.1%-23.2%

Return vs Industry: PAYX exceeded the US IT industry which returned -39.1% over the past year.

Return vs Market: PAYX exceeded the US Market which returned -23.2% over the past year.

Price Volatility

Is PAYX's price volatile compared to industry and market?
PAYX volatility
PAYX Average Weekly Movement3.7%
IT Industry Average Movement8.0%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: PAYX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: PAYX's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197116,000Marty Muccihttps://www.paychex.com

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.

Paychex, Inc. Fundamentals Summary

How do Paychex's earnings and revenue compare to its market cap?
PAYX fundamental statistics
Market CapUS$40.44b
Earnings (TTM)US$1.44b
Revenue (TTM)US$4.74b

28.1x

P/E Ratio

8.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PAYX income statement (TTM)
RevenueUS$4.74b
Cost of RevenueUS$1.39b
Gross ProfitUS$3.34b
Other ExpensesUS$1.90b
EarningsUS$1.44b

Last Reported Earnings

Aug 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.99
Gross Margin70.54%
Net Profit Margin30.38%
Debt/Equity Ratio25.8%

How did PAYX perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

73%

Payout Ratio