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 and Europe. More Details
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: PAYX's weekly volatility (3%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: PAYX underperformed the US IT industry which returned 58.9% over the past year.
Return vs Market: PAYX underperformed the US Market which returned 55.3% over the past year.
Long-Term 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 StHave Insiders Been Selling Paychex, Inc. (NASDAQ:PAYX) Shares?
2 weeks ago | Simply Wall StIs Paychex, Inc.'s (NASDAQ:PAYX) Recent Stock Performance Influenced By Its Fundamentals In Any Way?
1 month ago | Simply Wall StShareholders Of Paychex (NASDAQ:PAYX) Must Be Happy With Their 104% Total Return
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 ($96.36) is trading above our estimate of fair value ($69.71)
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 (32.8x) compared to the US IT industry average (34.7x).
PE vs Market: PAYX is poor value based on its PE Ratio (32.8x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: PAYX is poor value based on its PEG Ratio (4.6x)
Price to Book Ratio
PB vs Industry: PAYX is overvalued based on its PB Ratio (11.7x) compared to the US IT industry average (5x).
How is Paychex forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PAYX's forecast earnings growth (7.2% per year) is above the savings rate (2%).
Earnings vs Market: PAYX's earnings (7.2% per year) are forecast to grow slower than the US market (18.7% per year).
High Growth Earnings: PAYX's earnings are forecast to grow, but not significantly.
Revenue vs Market: PAYX's revenue (5.8% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: PAYX's revenue (5.8% 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 (43.3%).
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 (26.8%) are lower than last year (27%).
Past Earnings Growth Analysis
Earnings Trend: PAYX's earnings have grown by 8.4% per year over the past 5 years.
Accelerating Growth: PAYX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: PAYX had negative earnings growth (-4.7%) over the past year, making it difficult to compare to the IT industry average (9.8%).
Return on Equity
High ROE: PAYX's Return on Equity (35.5%) is considered high.
How is Paychex's financial position?
Financial Position Analysis
Short Term Liabilities: PAYX's short term assets ($6.6B) exceed its short term liabilities ($5.4B).
Long Term Liabilities: PAYX's short term assets ($6.6B) exceed its long term liabilities ($1.3B).
Debt to Equity History and Analysis
Debt Level: PAYX's debt to equity ratio (25.8%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if PAYX's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: PAYX's debt is well covered by operating cash flow (164.1%).
Interest Coverage: PAYX's interest payments on its debt are well covered by EBIT (42.5x coverage).
What is Paychex current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PAYX's dividend (2.57%) is higher than the bottom 25% of dividend payers in the US market (1.27%).
High Dividend: PAYX's dividend (2.57%) is low compared to the top 25% of dividend payers in the US market (3.5%).
Stability and Growth of Payments
Stable Dividend: PAYX's dividends per share have been stable in the past 10 years.
Growing Dividend: PAYX's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (84.5%), PAYX's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PAYX's dividends in 3 years are forecast to be covered by earnings (82.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Marty Mucci (60 yo)
Mr. Martin Mucci, also known as Marty, has been the Chief Executive Officer and President of Paychex, Inc. since September 30, 2010 and has been its Director since 2010. Mr. Mucci joined Paychex Inc. in Ma...
CEO Compensation Analysis
Compensation vs Market: Marty's total compensation ($USD8.07M) is about average for companies of similar size in the US market ($USD10.94M).
Compensation vs Earnings: Marty's compensation has been consistent with company performance over the past year.
Experienced Management: PAYX's management team is seasoned and experienced (9.5 years average tenure).
Experienced Board: PAYX's board of directors are seasoned and experienced ( 10.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$34.724b
- Shares outstanding: 360.36m
- Website: https://www.paychex.com
Number of Employees
- Paychex, Inc.
- 911 Panorama Trail South
- New York
- United States
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 and Europ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/10 22:18|
|End of Day Share Price||2021/04/09 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.