Paychex, Inc. (PAYX), Discounted Cash Flow Valuation

Paychex, Inc. (PayX) Compañía Profile

US | Industrials | Staffing & Employment Services | NASDAQ
140.39 -4.51 (-3.11%)
Real-Time Price (USD)
Market Cap A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
50.57B
Revenue (ttm) The total amount of income generated by the sale of goods or services related to the company's primary operations.
5.44B
Net Income (ttm) The company's earnings for a period net of operating costs, taxes and interest.
1.74B
Shares Out Total number of common shares outstanding as of the latest date disclosed in a financial filing.
362M
EPS (ttm) Company's net earnings or losses from continuing operations on a per diluted share basis.
4.8
PE Ratio The price-to-earnings (PE) ratio is the ratio between a company's stock price and earnings per share. It measures the price of a stock relative to its profits.
25.61
Dividend Yield Measures the cash returned to shareholders by a firm as a percentage of the price they pay for each share of stock.
3.04%
Exchange Name of stock exchange where the trading item trades.
NASDAQ
Avg Volume The average number of shares traded each day over the past 30 days.
2.21M
Open The opening trade price over the trading day.
144.06
Previous Close The last closing price.
144.9
Beta A ratio that measures the risk or volatility of a company's share price in comparison to the market as a whole.
0.88
1 day delta The range between the high and low prices over the past day.
138.17-144.51
52 weeks The range between the high and low prices over the past 52 weeks.
115.4-158.37

Total Valuation

Paychex, Inc. has a market cap or net worth of 50.57B. The enterprise value is 49.07B.
Market Cap (ttm) Market Capitalization
A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
50.57B
Enterprise Value (ttm) Enterprise Value
Enterprise value measures the total value of a company's outstanding shares, adjusted for debt and levels of cash and short-term investments.
Enterprise Value = Market Cap + Total Debt - Cash & Equivalents - Short-Term Investments
49.07B

Valuation Ratios

The trailing PE ratio is . Paychex, Inc.'s PEG ratio is .
PE Ratio (ttm) PE Ratio
The price-to-earnings (P/E) ratio is a valuation metric that shows how expensive a stock is relative to earnings.
PE Ratio = Stock Price / Earnings Per Share
PS Ratio (ttm) PS Ratio
The price-to-sales (P/S) ratio is a commonly used valuation metric. It shows how expensive a stock is compared to revenue.
PS Ratio = Market Capitalization / Revenue
PB Ratio (ttm) PB Ratio
The price-to-book (P/B) ratio measures a stock's price relative to book value. Book value is also called Shareholders' equity.
PB Ratio = Market Capitalization / Shareholders' Equity
P/FCF Ratio (ttm) P/FCF Ratio
The price to free cash flow (P/FCF) ratio is similar to the P/E ratio, except it uses free cash flow instead of accounting earnings.
P/FCF Ratio = Market Capitalization / Free Cash Flow
PEG Ratio (ttm) PEG Ratio
The price/earnings to growth (PEG) ratio is calculated by dividing a company's PE ratio by its expected earnings growth.
PEG Ratio = PE Ratio / Expected Earnings Growth

Enterprise Valuation

The stock's EV/EBITDA ratio is 19.79, with a EV/FCF ratio of 30.63.
EV / Sales (ttm) EV / Sales Ratio
The enterprise value to sales (EV/Sales) ratio is similar to the price-to-sales ratio, but the price is adjusted for the company's debt and cash levels.
EV/Sales Ratio = Enterprise Value / Revenue
9.02
EV / EBITDA (ttm) EV / EBIT Ratio
The EV/EBITDA ratio measures a company's valuation relative to its EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization.
EV/EBITDA Ratio = Enterprise Value / EBITDA
19.79
EV / EBIT (ttm) EV/EBIT Ratio
The EV/EBIT is a valuation metric that measures a company's price relative to EBIT, or Earnings Before Interest and Taxes.
EV/EBIT Ratio = Enterprise Value / EBIT
27.58
EV / FCF (ttm) EV/FCF Ratio
The enterprise value to free cash flow (EV/FCF) ratio is similar to the price to free cash flow ratio, except the price is adjusted for the company's cash and debt.
EV/FCF Ratio = Enterprise Value / Free Cash Flow
30.63

Financial Efficiency

Return on equity (ROE) is and return on invested capital (ROIC) is 31.71%.
Return on Equity (ROE) (ttm) Return on Equity (ROE)
Return on equity (ROE) is a profitability metric that shows how efficient a company is at using its equity (or "net" assets) to generate profits. It is calculated by dividing the company's net income by the average shareholders' equity over the past 12 months.
ROE = (Net Income / Average Shareholders' Equity) * 100%
Return on Assets (ROA) (ttm) Return on Assets (ROA)
Return on assets (ROA) is a metric that measures how much profit a company is able to generate using its assets. It is calculated by dividing net income by the average total assets for the past 12 months.
ROA = (Net Income / Average Total Assets) * 100%
Return on Capital (ROIC) (ttm) Return on Capital (ROIC)
Return on invested capital (ROIC) measures how effective a company is at investing its capital in order to increase profits. It is calculated by dividing the EBIT (Earnings Before Interest & Taxes) by the average invested capital in the previous year.
ROIC = (EBIT / Average Invested Capital) * 100%
31.71%
Asset Turnover Asset Turnover
The asset turnover ratio measures the amount of sales relative to a company's assets. It indicates how efficiently the company uses its assets to generate revenue.
Asset Turnover Ratio = Revenue / Average Assets
0.51
Inventory Turnover (ttm) Inventory Turnover
The inventory turnover ratio measures how many times inventory has been sold and replaced during a time period.
Inventory Turnover Ratio = Cost of Revenue / Average Inventory
0

Margins

Trailing 12 months gross margin is , with operating and profit margins of and .
Gross Margin (ttm) Gross Margin
Gross margin is the percentage of revenue left as gross profits, after subtracting cost of goods sold from the revenue.
Gross Margin = (Gross Profit / Revenue) * 100%
Operating Margin (ttm) Operating Margin
Operating margin is the percentage of revenue left as operating income, after subtracting cost of revenue and all operating expenses from the revenue.
Operating Margin = (Operating Income / Revenue) * 100%
Pretax Margin (ttm) Pretax Margin
Pretax margin is the percentage of revenue left as profits before subtracting taxes.
Pretax Margin = (Pretax Income / Revenue) * 100%
Profit Margin (ttm) Profit Margin
Profit margin is the percentage of revenue left as net income, or profits, after subtracting all costs and expenses from the revenue.
Profit Margin = (Net Income / Revenue) * 100%
EBITDA Margin (ttm) EBITDA Margin
EBITDA margin is the percentage of revenue left as EBITDA, after subtracting all expenses except interest, taxes, depreciation and amortization from revenue.
EBITDA Margin = (EBITDA / Revenue) * 100%
45.58%

Income Statement

In the last 12 months, Paychex, Inc. had revenue of 5.44B and earned 1.74B in profits. Earnings per share (EPS) was 4.8.
Revenue (ttm) Revenue
Revenue is the amount of money a company receives from its main business activities, such as sales of products or services. Revenue is also called sales.
5.44B
Gross Profit (ttm) Gross Profit
Gross profit is a company’s profit after subtracting the costs directly linked to making and delivering its products and services.
Gross Profit = Revenue - Cost of Revenue
3.92B
Operating Income (ttm) Operating Income
Operating income is the amount of profit in a company after paying for all the expenses related to its core operations.
Operating Income = Revenue - Cost of Revenue - Operating Expenses
2.26B
Pretax Income (ttm) Pretax Income
Pretax income is a company's profits before accounting for income taxes.
Pretax Income = Net Income + Income Taxes
2.28B
Net Income (ttm) Net Income
Net income is a company's accounting profits after subtracting all costs and expenses from the revenue. It is also called earnings, profits or "the bottom line"
Net Income = Revenue - All Expenses
1.74B
EBITDA (ttm) EBITDA
EBITDA stands for "Earnings Before Interest, Taxes, Depreciation and Amortization." It is a commonly used measure of profitability.
EBITDA = Net Income + Interest + Taxes + Depreciation and Amortization
2.48B
EBIT (ttm) EBIT
EBIT stands for "Earnings Before Interest and Taxes" and is a commonly used measure of earnings or profits. It is similar to operating income.
EBIT = Net Income + Interest + Taxes
2.31B
Earnings Per Share (EPS) (ttm) EPS (Diluted)
Earnings per share is the portion of a company's profit that is allocated to each individual stock. Diluted EPS is calculated by dividing net income by "diluted" shares outstanding.
Diluted EPS = Net Income / Shares Outstanding (Diluted)
4.8

Financial Position

The company has a trailing 12 months (ttm) current ratio of , with a ttm Debt / Equity ratio of 0.02.
Current Ratio (ttm) Current Ratio
The current ratio is used to measure a company's short-term liquidity. A low number can indicate that a company will have trouble paying its upcoming liabilities.
Current Ratio = Current Assets / Current Liabilities
Quick Ratio (ttm) Quick Ratio
The quick ratio measure a company's short-term liquidity. A low number indicates that the company may have trouble paying its upcoming financial obligations.
Quick Ratio = (Cash + Short-Term Investments + Accounts Receivable) / Current Liabilities
Debt / Equity (ttm) Debt / Equity Ratio
The debt-to-equity ratio measures a company's debt levels relative to its shareholders' equity or book value. A high ratio implies that a company has a lot of debt.
Debt / Equity Ratio = Total Debt / Shareholders' Equity
0.02
Debt / EBIT (ttm) Debt / EBIT Ratio
The debt-to-EBIT ratio is a company's debt levels relative to its trailing twelve-month EBIT. A high ratio implies that debt is high relative to the company's earnings.
Debt / EBIT Ratio = Total Debt / EBIT (ttm)

Dividends & Yields

This stock pays an annual dividend of 3.92, which amounts to a dividend yield of 2.79%.
Dividend Per Share (ttm) Dividend Per Share
Total amount paid to each outstanding share in dividends during the period.
3.92
Dividend Yield (ttm) Dividend Yield
The dividend yield is how much a stock pays in dividends each year, as a percentage of the stock price.
Dividend Yield = (Annual Dividends Per Share / Stock Price) * 100%
2.79%
Earnings Yield (ttm) Earnings Yield
The earnings yield is a valuation metric that measures a company's profits relative to stock price, expressed as a percentage yield. It is the inverse of the P/E ratio.
Earnings Yield = (Earnings Per Share / Stock Price) * 100%
3.44%
FCF Yield (ttm) FCF Yield
The free cash flow (FCF) yield measures a company's free cash flow relative to its price, shown as a percentage. It is the inverse of the P/FCF ratio.
FCF Yield = (Free Cash Flow / Market Cap) * 100%
3.17%
Dividend Growth (YoY) Dividend Growth
The change in dividend payments per share, compared to the previous period.
Dividend Growth = ((Current Dividend / Previous Dividend) - 1) * 100%
11.97%
Payout Ratio (ttm) Payout Ratio
The payout ratio is the percentage of a company's profits that are paid out as dividends. A high ratio implies that the dividend payments may not be sustainable.
Payout Ratio = (Dividends Per Share / Earnings Per Share) * 100%
81.15%

Balance Sheet

The company has 1.56B in cash and 64.7M in debt, giving a net cash position of 1.5B.
Cash & Cash Equivalents Cash & Cash Equivalents
Cash and cash equivalents is the sum of "Cash & Equivalents" and "Short-Term Investments." This is the amount of money that a company has quick access to, assuming that the cash equivalents and short-term investments can be sold at a short notice.
Cash & Cash Equivalents = Cash & Equivalents + Short-Term Investments
1.56B
Total Debt Total Debt
Total debt is the total amount of liabilities categorized as "debt" on the balance sheet. It includes both current and long-term (non-current) debt.
Total Debt = Current Debt + Long-Term Debt
64.7M
Net Cash Net Cash / Debt
Net Cash / Debt is an indicator of the financial position of a company. It is calculated by taking the total amount of cash and cash equivalents and subtracting the total debt.
Net Cash / Debt = Total Cash - Total Debt
1.5B
Book Value Shareholders' Equity
Shareholders’ equity is also called book value or net worth. It can be seen as the amount of money held by investors inside the company. It is calculated by subtracting all liabilities from all assets.
Shareholders' Equity = Total Assets - Total Liabilities
4.12B
Book Value Per Share (ttm) Book Value Per Share
Book value per share is the total amount of book value attributable to each individual stock. It is calculated by dividing book value (shareholders' equity) by the number of outstanding shares.
Book Value Per Share = Book Value / Shares Outstanding
11.43
Working Capital (ttm) Working Capital
Working capital is the amount of money available to a business to conduct its day-to-day operations. It is calculated by subtracting total current liabilities from total current assets.
Working Capital = Current Assets - Current Liabilities
2.28B

Cash Flow

In the last 12 months, operating cash flow of the company was 1.78B and capital expenditures -176.9M, giving a free cash flow of 1.6B.
Operating Cash Flow (ttm) Operating Cash Flow
Operating cash flow, also called cash flow from operating activities, measures the amount of cash that a company generates from normal business activities. It is the amount of cash left after all cash income has been received, and all cash expenses have been paid.
1.78B
Capital Expenditures (ttm) Capital Expenditures
Capital expenditures are also called payments for property, plants and equipment. It measures cash spent on long-term assets that will be used to run the business, such as manufacturing equipment, real estate and others.
-176.9M
Free Cash Flow (ttm) Free Cash Flow
Free cash flow is the cash remaining after the company spends on everything required to maintain and grow the business. It is calculated by subtracting capital expenditures from operating cash flow.
Free Cash Flow = Operating Cash Flow - Capital Expenditures
1.6B
FCF Per Share (ttm) Free Cash Flow Per Share
Free cash flow per share is the amount of free cash flow attributed to each outstanding stock.
FCF Per Share = Free Cash Flow / Shares Outstanding
4.45

Paychex, Inc. News

Apr 14, 2025 - pymnts.com
Paychex Acquires Paycor in $4.1 Billion Deal
Human capital management (HCM) firm Paychex has announced its acquisition of Paycor HCM, a software company providing HCM, payroll and talent services....[read more]
Apr 14, 2025 - businesswire.com
Paychex Completes Acquisition of Paycor
ROCHESTER, N.Y.--(BUSINESS WIRE)--Paychex, Inc. (Nasdaq: PAYX) (“Paychex”), an industry-leading human capital management (HCM) company, today announced the successful completion of its acquisition of Paycor HCM, Inc. (Nasdaq: PYCR) (“Paycor”), a leading provider of HCM, payroll and talent software. “The Paycor acquisition unites two industry leaders with unrivaled AI-enabled technology supported by world-class service and advisory capabilities,” said John Gibson, Paychex president and CEO. “Tog....[read more]
Apr 8, 2025 - businesswire.com
Paychex, Inc. Announces Pricing of its Senior Notes
ROCHESTER, N.Y.--(BUSINESS WIRE)--Paychex, Inc. (Nasdaq: PAYX) today announced the pricing of a public offering of $4.2 billion aggregate principal amount of senior notes, consisting of $1.5 billion aggregate principal amount of 5.100% notes due 2030, $1.5 billion aggregate principal amount of 5.350% notes due 2032, and $1.2 billion aggregate principal amount of 5.600% notes due 2035. The offering is expected to close on or about April 10, 2025, subject to the satisfaction of customary closing....[read more]
Apr 7, 2025 - seekingalpha.com
Automatic Data Processing Vs. Paychex: Recession Risk Tests Resilience
Automatic Data Processing and Paychex are high-quality payroll and HR service providers with strong client retention, but both face new macroeconomic risks. ADP's global scale, tech investments, and dividend growth appeal make it a reliable, cash-generating business, despite its persistently high valuation metrics. PAYX's Paycor acquisition will expand its mid-market reach and product depth, but integration and SMB reliance pose risks....[read more]
Apr 1, 2025 - businesswire.com
Paychex Small Business Jobs Index Shows Little Change in March and Levels Consistent with Last Several Quarters
ROCHESTER, N.Y.--(BUSINESS WIRE)---- $PAYX #employmenttrends--The Paychex Small Business Employment Watch, which includes the Paychex Small Business Jobs Index as a measure of employment growth among U.S. businesses with fewer than 50 employees, showed job growth continued at levels seen over the last several quarters at 99.75 in March. Meanwhile, Paychex wage data revealed the hourly earnings growth rate (2.91%) for workers in U.S. small businesses remained essentially unchanged in March from t...[read more]
Apr 1, 2025 - marketbeat.com
Paychex and Cintas Show Surprising Labor Market Resilience
Paychex Inc. NASDAQ: PAYX and Cintas Corp. NASDAQ: CTAS are two prominent business services stocks. They serve as bellwethers of the labor market....[read more]
Mar 31, 2025 - marketbeat.com
Get Paid With Paychex: Dividends and Higher Prices Too
Paychex FQ3/CQ1 2025 results are mixed relative to the analysts' forecasts but did nothing to alter the long-term outlook for this business service. Revenue was as expected at $1.51 billion, up about 5% year over year, with strength in both segments driving results....[read more]
Mar 28, 2025 - zacks.com
Consider These Human Capital Management Stocks Amid a Resurgence in Market Volatility
The necessity for human capital management (HCM) solution providers is intriguing, especially those that offer payroll services as they should be relatively unaffected by tariffs....[read more]
Mar 27, 2025 - youtube.com
Small businesses are expressing optimism and uncertainty, says Paychex CEO
Paychex President and CEO John Gibson joins 'Mad Money' host Jim Cramer to talk quarterly results, the state of small businesses, quarterly revenue and more....[read more]
Mar 27, 2025 - benzinga.com
Paychex Analyst Sees Limited Upside Despite Q3 Profitability Surge
RBC Capital Markets analyst Ashish Sabadra on Wednesday reiterated a Sector Perform rating on the shares of Paychex Inc PAYX with a price forecast of $148.00....[read more]

Paychex, Inc. Details

Country US
City Rochester
Address 911 Panorama Trail South
Ticker Symbol PAYX
Exchange NASDAQ Global Select
IPO Date Aug 26, 1983
CEO Mr. John B. Gibson Jr.
Sector Industrials
Industry Staffing & Employment Services
Employees 16.5K

Paychex, Inc. Company Description

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, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing. The company 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, it 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, the company 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. It markets and sells its services primarily through its direct sales force. The company was founded in 1971 and is headquartered in Rochester, New York.

Paychex, Inc. (PAYX) Bundle

Get Full Bundle:

TOTAL: $121 $71

Disclaimer

All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.

We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.

All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.