Paychex Inc

  • Earnings Score
  • Moat Score
  • Safety Score
  • Final Score
  • Market Cap $53.36B
  • PE 31
  • Debt $817.10M
  • Cash $1.66B
  • EV $52.52B
  • FCF $1.57B

Earnings

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Sales & Net Margins

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Earnings$1.72B
EBIT$2.25B
ROE44%
ROA21%
FCF$1.57B
Equity$3.93B
Growth Stability100%
PE31.04
PEG2.44
PB13.59
P/FCF33.99
P/S9.94
Price/Cash0.03
Debt/Equity0.21
Debt/FCF0.52
Net Margins32%
Gross Margins72%
Op. Margins42%
Earnings CAGR11%
Sales Growth YoY5%
Sales Growth QoQ-0%
Sales CAGR8%
FCF CAGR8%
Equity CAGR9%
Earnings Stability0.97
Earnings Growth YoY5%
Earnings Growth QoQ-3%
Earnings CAGR 5Y13%
Sales CAGR 5Y8%
FCF CAGR 5Y10%
Equity CAGR 5Y8%
Earnings CAGR 3Y7%
Sales CAGR 3Y7%
FCF CAGR 3Y9%
Equity CAGR 3Y9%
Market Cap$53.36B
Revenue$5.37B
Dividend Yield3%
Payout Ratio80%
Assets$10.55B
Total Debt$817.10M
Cash$1.66B
Shares Outstanding359.32M
EV52.52B
Earnings Score94%
Moat Score97%
Safety Score97%
Final Score96%
Working Capital2.1B
Current Ratio1.39
Gross Profit$3.86B
Shares Growth 3y-0%
Equity Growth QoQ2%
Equity Growth YoY11%

Assets & ROA

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Stockholders Equity & ROE

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Paychex is a leading provider of payroll, human capital management, and insurance solutions servicing small and midsize clients primarily in the United States. The company, established in 1979, services over 730,000 clients and pays over 1 in 12 U.S. private-sector workers. Alongside its traditional payroll services, Paychex offers HCM solutions such as benefits administration and time and attendance software, as well as human resources outsourcing and insurance agency services.

SEC Filings

Direct access to Paychex Inc (PAYX) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

  • 2024
    • 10-Q Nov 30
    • 10-Q Aug 31
    • 10-K May 31
    • 10-Q Feb 29
  • 2023
    • 10-Q Nov 30
    • 10-Q Aug 31
    • 10-K May 31
    • 10-Q Feb 28
  • 2022
    • 10-Q Nov 30
    • 10-Q Aug 31
    • 10-K May 31
    • 10-Q Feb 28

Sector Comparison

How does Paychex Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Paychex Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 11%
Stability 97%
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Paychex Inc Discounted Cash Flow

Fully customizable DCF calculator online for Paychex Inc.

= $28B
012345678910TV
fcf$1.6B$1.7B$1.8B$2B$2.2B$2.4B$2.6B$2.8B$3B$3.3B$3.5B$35B
DCF$1.5B$1.5B$1.5B$1.5B$1.5B$1.4B$1.4B$1.4B$1.4B$1.4B$14B
Value$28B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years05/201505/201605/201705/201805/201905/202005/202105/202205/202305/2024TTM
Net Margins25%26%26%28%27%27%27%30%31%32%32%
ROA-18%18%17%16%17%16%19%19%21%21%
ROE-40%42%46%39%39%37%45%45%44%44%

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years05/201505/201605/201705/201805/201905/202005/202105/202205/202305/2024TTM
Debt over FCF---00.70.610.70.590.520.470.52
Debt over Equity---00.310.290.270.260.230.220.21
Growth Stability---100%100%100%100%100%100%100%100%

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years05/201505/201605/201705/201805/201905/202005/202105/202205/202305/2024CAGR 5Y
Revenue YoY growth-8%7%7%12%7%0%14%9%5%8%
Earnings YoY growth-12%8%14%11%6%-0%27%12%9%13%
Equity YoY growth-7%2%4%29%6%6%5%13%9%8%
FCF YoY growth-16%-6%30%2%14%-13%20%13%12%10%