Paychex Inc Stock Research

Market Summary

USD108.67+1.67

Market Closed

1.56%

PAYX Stock Price

PAYX RSI Chart

PAYX Valuation

Market Cap

39.2B

Price/Earnings (Trailing)

26.71

Price/Sales (Trailing)

8.13

EV/EBITDA

18.17

Price/Free Cashflow

26.08

PAYX Price/Sales (Trailing)

PAYX Profitability

Operating Margin

70.47%

EBT Margin

39.66%

Return on Equity

45.76%

Return on Assets

15.92%

Free Cashflow Yield

3.83%

PAYX Fundamentals

PAYX Revenue

Revenue (TTM)

4.8B

Revenue Y/Y

7.38%

Revenue Q/Q

-1.32%

PAYX Earnings

Earnings (TTM)

1.5B

Earnings Y/Y

8.49%

Earnings Q/Q

-4.98%

Price Action

52 Week Range

104.94139.18

(Low)(High)

Last 7 days

-5.1%

Last 30 days

-7.4%

Last 90 days

-8.6%

Trailing 12 Months

-10.4%

PAYX Financial Health

Current Ratio

1.3

PAYX Investor Care

Dividend Yield

2.79%

Dividend/Share (TTM)

3.03

Buy Backs (1Y)

0.06%

Diluted EPS (TTM)

4.05

Peers (Alternatives to Paychex)

View All Peers In Detail

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
MA	335.8B	22.2B	-6.13%	4.21%	33.82	15.1	17.76%	14.31%
SQ	44.5B	17.5B	-3.58%	-28.15%	-82.3	2.54	-0.73%	-425.19%
PAYX	39.2B	4.8B	-7.37%	-10.43%	26.71	8.13	11.18%	-17.61%
IT	24.2B	5.5B	-11.56%	11.17%	30.02	4.43	15.67%	1.79%
BAH	12.0B	9.1B	-5.84%	7.71%	27.8	1.32	11.83%	-25.03%
MID-CAP
G	8.0B	4.4B	-8.72%	3.39%	22.77	1.84	-	-
DXC	5.4B	14.8B	-21.29%	-25.03%	7.52	0.36	-10.79%	217.70%
WU	4.0B	4.5B	-25.42%	-36.83%	4.4	0.89	-11.74%	13.01%
VRRM	2.6B	741.6M	8.00%	6.06%	28.25	3.52	34.69%	123.11%
SMALL-CAP
CNDT	733.6M	3.9B	-23.97%	-24.66%	-4.03	0.19	-6.81%	-550.00%
RPAY	571.5M	279.2M	-30.85%	-51.37%	44.52	2.05	27.35%	125.63%
HCKT	565.9M	293.9M	-19.71%	-15.29%	11.89	1.93	9.71%	83.69%
III	235.8M	281.7M	-10.58%	-31.37%	12.4	0.84	2.55%	41.96%
UIS	233.9M	2.0B	-37.32%	-83.97%	-2.21	0.12	-3.63%	76.37%

Financials for Paychex

* denotes actual numbers (not divided by Millions)
Income Statement (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Revenue	1.7%	4,817	4,735	4,612	4,497	4,332
S&GA Expenses	1.5%	1,470	1,448	1,415	1,385	1,338
Costs and Expenses	1.8%	2,892	2,842	2,772	2,697	2,627
EBITDA	1.6%	2,096	2,063	2,016	1,972	-
EBITDA Margin	-0.1%	0.44*	0.44*	0.44*	0.44*	-
Earnings Before Taxes	2.0%	1,910	1,873	1,825	1,782	1,690
EBT Margin	0.3%	0.40*	0.40*	0.40*	0.40*	-
Net Income	2.0%	1,467	1,438	1,393	1,860	1,780
Net Income Margin	0.2%	0.30*	0.30*	0.30*	0.30*	-
Free Cahsflow	11.2%	1,502	1,351	1,373	1,431	-

Balance Sheet					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Assets	1.0%	9,214	9,126	9,635	10,284	9,688
Current Assets	1.9%	6,198	6,085	6,582	7,237	6,632
Cash Equivalents	-7.4%	1,097	1,184	370	268	636
Net PPE	-1.3%	393	398	401	400	399
Goodwill	0.3%	1,830	1,825	1,832	1,832	1,832
Liabilities	0.3%	6,009	5,989	6,550	6,998	6,568
Current Liabilities	1.1%	4,754	4,702	5,269	5,688	5,222
. Short Term Borrowings	-1.9%	10.00	10.00	9.00	9.00	9.00
LT Debt, Non Current	0.0%	798	798	798	798	798
Shareholder's Equity	2.2%	3,205	3,137	3,085	3,286	3,120
Retained Earnings	4.3%	1,811	1,736	1,670	1,799	1,607
Additional Paid-In Capital	1.3%	1,589	1,569	1,546	1,531	1,506
Shares Outstanding	0.0%	361	360	360	361	361
Float	-	30,609	-	-	-	-

Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Cashflow From Operations	10.2%	1,636	1,484	1,506	1,558	1,385
Share Based Compensation	2.4%	56.00	55.00	53.00	54.00	53.00
Cashflow From Investing	152.5%	92.00	-175	-1,420	-1,028	-421
Cashflow From Financing	-9.5%	-1,727	-1,577	-979	-791	-476
Dividend Payments	4.4%	1,093	1,046	1,000	953	938
Buy Backs	-	145	-	-	-	-

Risks for PAYX

What is the probability of a big loss on PAYX?

28.9%

Probability that Paychex stock will be more than 20% underwater in next one year

19.2%

Probability that Paychex stock will be more than 30% underwater in next one year.

18.5%

Probability that Paychex stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does PAYX drawdown profile look like?

Y-axis is the maximum loss one would have experienced if Paychex was unfortunately bought at previous high price.

Drawdowns

Returns for PAYX

Cumulative Returns on PAYX

15.5%

10-Year Cumulative Returns

13.7%

7-Year Cumulative Returns

13.2%

5-Year Cumulative Returns

17.3%

3-Year Cumulative Returns

What are the long-term rolling returns for PAYX?

FIve years rolling returns for Paychex.

Annualized Returns

Which funds bought or sold PAYX recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-03-15	B. Riley Wealth Advisors, Inc.	added	3.46	106,486	1,749,490	0.05%
2023-03-13	Claro Advisors LLC	added	18.03	138,555	839,555	0.28%
2023-03-10	VICTORY CAPITAL MANAGEMENT INC	added	2.56	3,626,170	68,082,200	0.07%
2023-03-10	BAILLIE GIFFORD & CO	unchanged	-	405	13,405	-%
2023-03-10	MATHER GROUP, LLC.	reduced	-2.46	2,052	367,052	0.01%
2023-03-08	SHEETS SMITH WEALTH MANAGEMENT	reduced	-2.66	14,128	5,676,130	0.89%
2023-03-07	Great Lakes Retirement, Inc.	new	-	1,583,630	1,583,630	0.41%
2023-03-07	Nordwand Advisors, LLC	new	-	872,362	872,362	0.11%
2023-03-06	Rockefeller Capital Management L.P.	added	9.61	317,000	2,769,000	0.01%
2023-03-03	TIAA, FSB	reduced	-2.95	-279	1,083,720	-%

Latest Funds Activity

Are funds buying PAYX calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own PAYX

No. of Funds

Paychex News

Schedule 13G FIlings of Paychex

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 09, 2023	vanguard group inc	8.54%	30,787,344	SC 13G/A
Feb 03, 2023	blackrock inc.	8.6%	30,829,500	SC 13G
Feb 02, 2023	golisano b thomas	10.5%	37,835,955	SC 13G
Feb 10, 2022	vanguard group inc	8.07%	29,121,393	SC 13G/A
Feb 03, 2022	golisano b thomas	10.%	3	SC 13G
Feb 01, 2022	blackrock inc.	8.4%	30,380,253	SC 13G/A
Feb 10, 2021	vanguard group inc	7.41%	26,739,244	SC 13G/A
Jan 29, 2021	blackrock inc.	8.8%	31,661,171	SC 13G/A
Jan 25, 2021	golisano b thomas	10.%	37	SC 13G/A
Feb 12, 2020	vanguard group inc	7.54%	27,049,108	SC 13G/A

PAYX Fair Value

Paychex fair value in different scenarios

The table shows the Fair Value estimates for Paychex for various scenarios. Disclaimer: These are just estimations from a model. None of the models are good at predicting the future. Please dont buy or sell stocks based on these outputs.

Fair Value	Very Pessimistic	Pessimistic	Base Case	Optimistic	Very Optimistic
Very Low Inflation	71.80 -33.93%	88.26 -18.78%	116.48 7.19%	153.76 41.49%	181.72 67.22%
Current Inflation	65.25 -39.96%	79.00 -27.30%	102.22 -5.94%	133.00 22.39%	155.93 43.49%
Very High Inflation	57.26 -47.31%	67.96 -37.46%	85.63 -21.20%	109.26 0.54%	126.70 16.59%

Historical Paychex Fair Value Estimates

Very Pessimistic Case

Pessimistic Case

Fair Value

Optimistic Case

Very Optimistic Case

Closing Stock Price

Recent SEC filings of Paychex

View All Filings

Date Filed	Form Type	Document
Mar 14, 2023	4	Insider Trading
Feb 09, 2023	SC 13G/A	Major Ownership Report
Feb 07, 2023	8-K	Current Report
Feb 03, 2023	SC 13G	Major Ownership Report
Feb 02, 2023	SC 13G	Major Ownership Report
Jan 25, 2023	3	Insider Trading
Jan 24, 2023	8-K	Current Report
Jan 17, 2023	4	Insider Trading
Dec 28, 2022	4	Insider Trading
Dec 22, 2022	10-Q	Quarterly Report

Latest Insider Trading transactions for PAYX

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-03-13	GOLISANO B THOMAS	gifted	-101,858	111	-915	-
2023-01-13	Gibson John B	sold	-23,340	120	-194	president and ceo
2022-12-28	Gioja Michael E	sold	-1,584,680	115	-13,744	sr. vice president
2022-11-30	GOLISANO B THOMAS	gifted	-99,820	122	-813	-
2022-10-20	RIVERA EFRAIN	sold	-33,095	111	-298	sr. vice president, cfo
2022-10-20	Bottini Mark Anthony	sold	-23,877	111	-215	sr. vp of sales
2022-10-20	Gioja Michael E	sold	-27,653	111	-249	sr. vice president
2022-10-15	Gibson John B	acquired	-	-	3,663	president and ceo
2022-10-15	MUCCI MARTIN	acquired	-	-	916	-
2022-10-14	Gioja Michael E	gifted	-24,479	110	-222	sr. vice president

About Paychex

Martin Mucci

www.paychex.com

15000

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. The company offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing. It 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. In addition, the company offers cloud-based HR administration software products for employee benefits management and administration, time and attendance, digital communication solutions, recruiting, and onboarding solutions; plan administration outsourcing and state unemployment insurance services; various business services to small to medium-sized businesses comprising payroll funding and outsourcing services, which include payroll processing, invoicing, and tax preparation; and payment processing services, financial fitness programs, and a small-business loan resource center. Further, it provides insurance services for property and casualty coverage, such as workers' compensation, business-owner policies, cyber security protection, and commercial auto, as well as health and benefits coverage, including health, dental, vision, and life. The company markets and sells its services primarily through its direct sales force. Paychex, Inc. was founded in 1971 and is headquartered in Rochester, New York.

PAYX Income Statement

2022-11-30

Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2022	Nov. 30, 2021	Nov. 30, 2022	Nov. 30, 2021
Revenue:
Total service revenue	$ 1,168.6	$ 1,094.4	$ 2,356.9	$ 2,162.8
Interest on funds held for clients	21.7	14.1	39.6	28.6
Total revenue	1,190.3	1,108.5	2,396.5	2,191.4
Expenses:
Cost of service revenue	359.3	331.6	710.3	644.1
Selling, general and administrative expenses	358.7	336.6	718.3	664.1
Total expenses	718.0	668.2	1,428.6	1,308.2
Operating income	472.3	440.3	967.9	883.2
Other income/(expense), net	2.9	(2.7)	(0.7)	(1.7)
Income before income taxes	475.2	437.6	967.2	881.5
Income taxes	114.9	105.5	227.7	215.8
Net income	360.3	332.1	739.5	665.7
Other comprehensive loss, net of tax	(26.9)	(41.3)	(64.4)	(48.0)
Comprehensive income	$ 333.4	$ 290.8	$ 675.1	$ 617.7
Basic earnings per share	$ 1.00	$ 0.92	$ 2.05	$ 1.85
Diluted earnings per share	$ 0.99	$ 0.91	$ 2.04	$ 1.83
Weighted-average common shares outstanding	360.5	360.7	360.2	360.4
Weighted-average common shares outstanding, assuming dilution	362.3	363.1	362.3	362.9
Management Solutions [Member]
Revenue:
Total service revenue	$ 895.3	$ 832.0	$ 1,800.8	$ 1,637.5
PEO And Insurance Solutions [Member]
Revenue:
Total service revenue	$ 273.3	$ 262.4	$ 556.1	$ 525.3

PAYX Balance Sheet

2022-11-30

Consolidated Balance Sheets - USD ($) $ in Millions	Nov. 30, 2022	May 31, 2022
ASSETS
Cash and cash equivalents	$ 1,096.5	$ 370.0
Restricted cash	57.8	50.3
Corporate investments	165.6	853.9
Interest receivable	23.2	22.3
Accounts receivable, net of allowance for credit losses	873.6	723.8
PEO unbilled receivables, net of advance collections	494.8	572.1
Prepaid income taxes	67.3	34.0
Prepaid expenses and other current assets	286.7	272.3
Current assets before funds held for clients	3,065.5	2,898.7
Funds held for clients	3,132.7	3,682.9
Total current assets	6,198.2	6,581.6
Long-term restricted cash	10.4	25.5
Long-term corporate investments	3.9	5.0
Property and equipment, net of accumulated depreciation	393.0	401.3
Operating lease right-of-use assets, net of accumulated amortization	70.7	78.7
Intangible assets, net of accumulated amortization	203.9	224.6
Goodwill	1,830.0	1,831.5
Long-term deferred costs	443.6	433.3
Other long-term assets	60.6	53.7
Total assets	9,214.3	9,635.2
LIABILITIES
Accounts payable	86.7	105.7
Accrued corporate compensation and related items	173.8	225.4
Accrued worksite employee compensation and related items	742.0	683.4
Short-term borrowings	10.1	8.7
Deferred revenue	44.8	38.4
Other current liabilities	346.1	388.4
Current liabilities before client fund obligations	1,403.5	1,450.0
Client fund obligations	3,350.4	3,819.2
Total current liabilities	4,753.9	5,269.2
Accrued income taxes	65.6	58.1
Deferred income taxes	129.8	165.5
Long-term borrowings, net of debt issuance costs	797.9	797.7
Operating lease liabilities	66.8	74.8
Other long-term liabilities	195.0	184.7
Total liabilities	6,009.0	6,550.0
Commitments and contingencies - Note H
STOCKHOLDERS' EQUITY
Common stock, $0.01 par value; Authorized: 600.0 shares; Issued and outstanding: 360.5 shares as of November 30, 2022 and 359.9 shares as of May 31, 2022	3.6	3.6
Additional paid-in capital	1,588.6	1,545.9
Retained earnings	1,811.4	1,669.6
Accumulated other comprehensive loss	(198.3)	(133.9)
Total stockholders' equity	3,205.3	3,085.2
Total liabilities and stockholders' equity	$ 9,214.3	$ 9,635.2