(PAYX) Paychex - Ratings and Ratios
Payroll, Human Resources, Benefits, Insurance, Retirement Services
PAYX EPS (Earnings per Share)
PAYX Revenue
Description: PAYX Paychex
Paychex Inc (NASDAQ:PAYX) is a leading provider of integrated human capital management (HCM) solutions, offering a comprehensive suite of services including payroll processing, benefits administration, human resources, and insurance services to small and medium-sized businesses in the US, Europe, and India.
The companys diverse range of services includes payroll processing, payroll tax administration, employee payment services, and regulatory compliance services, as well as HR solutions such as integrated HCM technology and HR advisory services. Additionally, Paychex offers retirement services administration, cloud-based HR administration software, and insurance services including property and casualty coverage and health and benefits coverage.
From a financial perspective, Paychex has demonstrated strong performance, with a return on equity (ROE) of 41.38%, indicating efficient use of shareholder capital. The companys price-to-earnings (P/E) ratio of 31.88 and forward P/E ratio of 27.03 suggest a relatively high valuation, but one that is justified by its consistent earnings growth. Key performance indicators (KPIs) such as revenue growth rate, client retention rate, and average revenue per user (ARPU) are likely to be closely monitored by investors.
To further evaluate Paychexs investment potential, it would be useful to examine its revenue diversification, client acquisition costs, and operating margins. The companys market capitalization of $53.04 billion and its position as a leader in the human capital management industry suggest a high level of stability and competitive advantage. As a Trading Analyst, it is essential to continue monitoring Paychexs financial performance and industry trends to identify potential trading opportunities.
PAYX Stock Overview
| Market Cap in USD | 48,705m |
| Sub-Industry | Human Resource & Employment Services |
| IPO / Inception | 1990-03-26 |
PAYX Stock Ratings
| Growth Rating | 44.9% |
| Fundamental | 83.6% |
| Dividend Rating | 73.2% |
| Return 12m vs S&P 500 | -14.8% |
| Analyst Rating | 2.83 of 5 |
PAYX Dividends
| Dividend Yield 12m | 3.01% |
| Yield on Cost 5y | 6.03% |
| Annual Growth 5y | 9.08% |
| Payout Consistency | 98.2% |
| Payout Ratio | 82.4% |
PAYX Growth Ratios
| Growth Correlation 3m | -82.1% |
| Growth Correlation 12m | 32.5% |
| Growth Correlation 5y | 85.6% |
| CAGR 5y | 7.13% |
| CAGR/Max DD 3y | 0.42 |
| CAGR/Mean DD 3y | 1.38 |
| Sharpe Ratio 12m | -0.30 |
| Alpha | 0.00 |
| Beta | 0.926 |
| Volatility | 22.47% |
| Current Volume | 3784.7k |
| Average Volume 20d | 1898.3k |
| Stop Loss | 128.4 (-3.1%) |
| Signal | -0.45 |
Piotroski VR‑10 (Strict, 0-10) 5.0
| Net Income (1.66b TTM) > 0 and > 6% of Revenue (6% = 334.3m TTM) |
| FCFTA 0.11 (>2.0%) and ΔFCFTA -5.94pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 35.18% (prev 36.80%; Δ -1.62pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.12 (>3.0%) and CFO 1.96b > Net Income 1.66b (YES >=105%, WARN >=100%) |
| Net Debt (3.39b) to EBITDA (2.49b) ratio: 1.36 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.28 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (362.3m) change vs 12m ago 0.14% (target <= -2.0% for YES) |
| Gross Margin 72.35% (prev 71.97%; Δ 0.38pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 41.35% (prev 50.84%; Δ -9.48pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 21.64 (EBITDA TTM 2.49b / Interest Expense TTM 105.4m) >= 6 (WARN >= 3) |
Altman Z'' 2.55
| (A) 0.12 = (Total Current Assets 8.92b - Total Current Liabilities 6.96b) / Total Assets 16.56b |
| (B) 0.14 = Retained Earnings (Balance) 2.28b / Total Assets 16.56b |
| (C) 0.17 = EBIT TTM 2.28b / Avg Total Assets 13.47b |
| (D) 0.18 = Book Value of Equity 2.23b / Total Liabilities 12.44b |
| Total Rating: 2.55 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 83.60
| 1. Piotroski 5.0pt = 0.0 |
| 2. FCF Yield 3.40% = 1.70 |
| 3. FCF Margin 31.78% = 7.50 |
| 4. Debt/Equity 1.20 = 1.82 |
| 5. Debt/Ebitda 1.99 = 0.01 |
| 6. ROIC - WACC (= 21.01)% = 12.50 |
| 7. RoE 41.38% = 2.50 |
| 8. Rev. Trend 64.59% = 4.84 |
| 9. EPS Trend 54.46% = 2.72 |
What is the price of PAYX shares?
Over the past week, the price has changed by -0.46%, over one month by -3.71%, over three months by -12.49% and over the past year by +0.94%.
Is Paychex a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of PAYX is around 118.44 USD . This means that PAYX is currently overvalued and has a potential downside of -10.58%.
Is PAYX a buy, sell or hold?
- Strong Buy: 1
- Buy: 0
- Hold: 13
- Sell: 3
- Strong Sell: 1
What are the forecasts/targets for the PAYX price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 147.3 | 11.2% |
| Analysts Target Price | 147.3 | 11.2% |
| ValueRay Target Price | 132.2 | -0.2% |
Last update: 2025-09-08 04:47
PAYX Fundamental Data Overview
CCE Cash And Equivalents = 1.66b USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 29.5721
P/E Forward = 24.7525
P/S = 8.7416
P/B = 11.7988
P/EG = 2.3941
Beta = 0.904
Revenue TTM = 5.57b USD
EBIT TTM = 2.28b USD
EBITDA TTM = 2.49b USD
Long Term Debt = 4.55b USD (from longTermDebt, last quarter)
Short Term Debt = 418.4m USD (from shortTermDebt, last quarter)
Debt = 4.97b USD (Calculated: Short Term 418.4m + Long Term 4.55b)
Net Debt = 3.39b USD (from netDebt column, last quarter)
Enterprise Value = 52.01b USD (48.71b + Debt 4.97b - CCE 1.66b)
Interest Coverage Ratio = 21.64 (Ebit TTM 2.28b / Interest Expense TTM 105.4m)
FCF Yield = 3.40% (FCF TTM 1.77b / Enterprise Value 52.01b)
FCF Margin = 31.78% (FCF TTM 1.77b / Revenue TTM 5.57b)
Net Margin = 29.74% (Net Income TTM 1.66b / Revenue TTM 5.57b)
Gross Margin = 72.35% ((Revenue TTM 5.57b - Cost of Revenue TTM 1.54b) / Revenue TTM)
Tobins Q-Ratio = 23.35 (Enterprise Value 52.01b / Book Value Of Equity 2.23b)
Interest Expense / Debt = 1.28% (Interest Expense 63.7m / Debt 4.97b)
Taxrate = 23.83% (518.6m / 2.18b)
NOPAT = 1.74b (EBIT 2.28b * (1 - 23.83%))
Current Ratio = 1.28 (Total Current Assets 8.92b / Total Current Liabilities 6.96b)
Debt / Equity = 1.20 (Debt 4.97b / last Quarter total Stockholder Equity 4.13b)
Debt / EBITDA = 1.99 (Net Debt 3.39b / EBITDA 2.49b)
Debt / FCF = 2.80 (Debt 4.97b / FCF TTM 1.77b)
Total Stockholder Equity = 4.01b (last 4 quarters mean)
RoA = 10.01% (Net Income 1.66b, Total Assets 16.56b )
RoE = 41.38% (Net Income TTM 1.66b / Total Stockholder Equity 4.01b)
RoCE = 26.67% (Ebit 2.28b / (Equity 4.01b + L.T.Debt 4.55b))
RoIC = 29.65% (NOPAT 1.74b / Invested Capital 5.86b)
WACC = 8.65% (E(48.71b)/V(53.67b) * Re(9.43%)) + (D(4.97b)/V(53.67b) * Rd(1.28%) * (1-Tc(0.24)))
Shares Correlation 3-Years: -36.86 | Cagr: -0.00%
Discount Rate = 9.43% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 74.49% ; FCFE base≈1.75b ; Y1≈1.88b ; Y5≈2.28b
Fair Price DCF = 86.74 (DCF Value 31.19b / Shares Outstanding 359.6m; 5y FCF grow 7.78% → 3.0% )
EPS Correlation: 54.46 | EPS CAGR: 5.39% | SUE: 0.0 | # QB: 0
Revenue Correlation: 64.59 | Revenue CAGR: 7.53% | SUE: N/A | # QB: None
Additional Sources for PAYX Stock
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