Reasonable growth and debt and a high ROIC for PAYCHEX INC (NASDAQ:PAYX).

In this article we will dive into PAYCHEX INC (NASDAQ:PAYX) as a possible candidate for quality investing. Investors should always do their own research, but we noticed PAYCHEX INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NASDAQ:PAYX highlighted

• PAYCHEX INC has achieved substantial revenue growth over the past 5 years, with a 6.95% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a robust ROIC excluding cash and goodwill at 106.0%, PAYCHEX INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• PAYCHEX INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 0.51, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• With a favorable Profit Quality (5-year) ratio of 104.0%, PAYCHEX INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• PAYCHEX INC has experienced impressive EBIT growth over the past 5 years, with 10.05% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• The EBIT 5-year growth of PAYCHEX INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental analysis of NASDAQ:PAYX

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to PAYX. PAYX was compared to 82 industry peers in the Professional Services industry. PAYX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, PAYX is valued expensive at the moment.

Our latest full fundamental report of PAYX contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.