Paychex Inc

Consumer Discretionary
Diversified Commercial Services
www.paychex.com

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

loading chart...

Sales & Net Margins

loading chart...

Earnings	$1.72B
EBIT	$2.25B
ROE	44%
ROA	21%
FCF	$1.57B
Equity	$3.93B
Growth Stability	100%
PE	31.04
PEG	2.44
PB	13.59
P/FCF	33.99
P/S	9.94
Price/Cash	0.03
Debt/Equity	0.21
Debt/FCF	0.52
Net Margins	32%
Gross Margins	72%
Op. Margins	42%
Earnings CAGR	11%
Sales Growth YoY	5%
Sales Growth QoQ	-0%
Sales CAGR	8%
FCF CAGR	8%
Equity CAGR	9%
Earnings Stability	0.97
Earnings Growth YoY	5%
Earnings Growth QoQ	-3%
Earnings CAGR 5Y	13%

Sales CAGR 5Y	8%
FCF CAGR 5Y	10%
Equity CAGR 5Y	8%
Earnings CAGR 3Y	7%
Sales CAGR 3Y	7%
FCF CAGR 3Y	9%
Equity CAGR 3Y	9%
Market Cap	$53.36B
Revenue	$5.37B
Dividend Yield	3%
Payout Ratio	80%
Assets	$10.55B
Total Debt	$817.10M
Cash	$1.66B
Shares Outstanding	359.32M
EV	52.52B
Earnings Score	94%
Moat Score	97%
Safety Score	97%
Final Score	96%
Working Capital	2.1B
Current Ratio	1.39
Gross Profit	$3.86B
Shares Growth 3y	-0%
Equity Growth QoQ	2%
Equity Growth YoY	11%

Assets & ROA

loading chart...

Stockholders Equity & ROE

loading chart...

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?

Loading chart...

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%

loading chart...

Paychex Inc Discounted Cash Flow

Fully customizable DCF calculator online for Paychex Inc.

Years

Calculation mode

= $28B

	0	1	2	3	4	5	6	7	8	9	10	TV
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.

Years	05/2015	05/2016	05/2017	05/2018	05/2019	05/2020	05/2021	05/2022	05/2023	05/2024	TTM
Net Margins	25%	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%

Good Net Margins (31.9%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

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.

Years	05/2015	05/2016	05/2017	05/2018	05/2019	05/2020	05/2021	05/2022	05/2023	05/2024	TTM
Debt over FCF	-	-	-	0	0.7	0.61	0.7	0.59	0.52	0.47	0.52
Debt over Equity	-	-	-	0	0.31	0.29	0.27	0.26	0.23	0.22	0.21
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Good Debt/FCF ratio (0.52)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.21)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

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.

Years	05/2015	05/2016	05/2017	05/2018	05/2019	05/2020	05/2021	05/2022	05/2023	05/2024	CAGR 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%