111.41 USD
-0.7 (-0.62%)
111.41 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to PAYX. PAYX was compared to 87 industry peers in the Professional Services industry. While PAYX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PAYX is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PAYX was profitable.
PAYX had a positive operating cash flow in the past year.
Each year in the past 5 years PAYX has been profitable.
In the past 5 years PAYX always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 9.68%, PAYX is doing good in the industry, outperforming 78.16% of the companies in the same industry.
PAYX's Return On Equity of 40.64% is amongst the best of the industry. PAYX outperforms 93.10% of its industry peers.
With an excellent Return On Invested Capital value of 18.73%, PAYX belongs to the best of the industry, outperforming 88.51% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PAYX is significantly above the industry average of 12.15%.
The last Return On Invested Capital (18.73%) for PAYX is well below the 3 year average (28.05%), which needs to be investigated, but indicates that PAYX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.68% | ||
| ROE | 40.64% | ||
| ROIC | 18.73% |
ROA(3y)13.68%
ROA(5y)13.48%
ROE(3y)43.07%
ROE(5y)42.31%
ROIC(3y)28.05%
ROIC(5y)28.53%
1.3 Margins
The Profit Margin of PAYX (27.86%) is better than 95.40% of its industry peers.
In the last couple of years the Profit Margin of PAYX has grown nicely.
Looking at the Operating Margin, with a value of 40.53%, PAYX belongs to the top of the industry, outperforming 98.85% of the companies in the same industry.
In the last couple of years the Operating Margin of PAYX has grown nicely.
PAYX has a better Gross Margin (90.88%) than 97.70% of its industry peers.
In the last couple of years the Gross Margin of PAYX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.53% | ||
| PM (TTM) | 27.86% | ||
| GM | 90.88% |
OM growth 3Y1.57%
OM growth 5Y2.95%
PM growth 3Y-0.51%
PM growth 5Y1.82%
GM growth 3Y-0.99%
GM growth 5Y-0.7%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PAYX is creating value.
The number of shares outstanding for PAYX remains at a similar level compared to 1 year ago.
PAYX has more shares outstanding than it did 5 years ago.
PAYX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.02 indicates that PAYX is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.02, PAYX perfoms like the industry average, outperforming 59.77% of the companies in the same industry.
The Debt to FCF ratio of PAYX is 2.72, which is a good value as it means it would take PAYX, 2.72 years of fcf income to pay off all of its debts.
PAYX has a better Debt to FCF ratio (2.72) than 66.67% of its industry peers.
PAYX has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
PAYX has a Debt to Equity ratio of 1.15. This is in the lower half of the industry: PAYX underperforms 73.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 2.72 | ||
| Altman-Z | 3.02 |
ROIC/WACC2.3
WACC8.13%
2.3 Liquidity
PAYX has a Current Ratio of 1.27. This is a normal value and indicates that PAYX is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.27, PAYX is not doing good in the industry: 60.92% of the companies in the same industry are doing better.
PAYX has a Quick Ratio of 1.27. This is a normal value and indicates that PAYX is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.27, PAYX is doing worse than 60.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
PAYX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.33%.
Measured over the past years, PAYX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.74% on average per year.
Looking at the last year, PAYX shows a quite strong growth in Revenue. The Revenue has grown by 9.08% in the last year.
Measured over the past years, PAYX shows a small growth in Revenue. The Revenue has been growing by 6.64% on average per year.
EPS 1Y (TTM)6.33%
EPS 3Y9.82%
EPS 5Y10.74%
EPS Q2Q%5.17%
Revenue 1Y (TTM)9.08%
Revenue growth 3Y6.51%
Revenue growth 5Y6.64%
Sales Q2Q%16.8%
3.2 Future
The Earnings Per Share is expected to grow by 8.20% on average over the next years. This is quite good.
PAYX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.19% yearly.
EPS Next Y12.04%
EPS Next 2Y9.87%
EPS Next 3Y8.62%
EPS Next 5Y8.2%
Revenue Next Year17.42%
Revenue Next 2Y11.53%
Revenue Next 3Y9.66%
Revenue Next 5Y8.19%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.11, which indicates a rather expensive current valuation of PAYX.
Compared to the rest of the industry, the Price/Earnings ratio of PAYX is on the same level as its industry peers.
PAYX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.53, PAYX is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as PAYX.
When comparing the Price/Forward Earnings ratio of PAYX to the average of the S&P500 Index (36.12), we can say PAYX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.11 | ||
| Fwd PE | 18.53 |
4.2 Price Multiples
PAYX's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PAYX indicates a somewhat cheap valuation: PAYX is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.92 | ||
| EV/EBITDA | 16.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PAYX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.84
PEG (5Y)2.06
EPS Next 2Y9.87%
EPS Next 3Y8.62%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.98%, PAYX has a reasonable but not impressive dividend return.
The stock price of PAYX dropped by -20.11% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.43, PAYX pays a better dividend. On top of this PAYX pays more dividend than 90.80% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, PAYX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
5.2 History
On average, the dividend of PAYX grows each year by 10.17%, which is quite nice.
PAYX has been paying a dividend for at least 10 years, so it has a reliable track record.
PAYX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.17%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
91.97% of the earnings are spent on dividend by PAYX. This is not a sustainable payout ratio.
The dividend of PAYX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP91.97%
EPS Next 2Y9.87%
EPS Next 3Y8.62%
111.41
-0.7 (-0.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners81.52%
Inst Owner Change-1.55%
Ins Owners10.57%
Ins Owner Change-1.99%
Market Cap40.10B
Revenue(TTM)5.79B
Net Income(TTM)1.61B
Analysts53.91
Price Target137.66 (23.56%)
Short Float %4.59%
Short Ratio4.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
Yearly Dividend4.02
Dividend Growth(5Y)10.17%
DP91.97%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.39%
Min EPS beat(2)-1.94%
Max EPS beat(2)-0.85%
EPS beat(4)0
Avg EPS beat(4)-1.16%
Min EPS beat(4)-1.94%
Max EPS beat(4)-0.58%
EPS beat(8)1
Avg EPS beat(8)-0.93%
EPS beat(12)3
Avg EPS beat(12)-0.49%
EPS beat(16)6
Avg EPS beat(16)1.1%
Revenue beat(2)0
Avg Revenue beat(2)-2.18%
Min Revenue beat(2)-2.51%
Max Revenue beat(2)-1.85%
Revenue beat(4)0
Avg Revenue beat(4)-2.12%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)-1.65%
Revenue beat(8)0
Avg Revenue beat(8)-2.29%
Revenue beat(12)0
Avg Revenue beat(12)-2.02%
Revenue beat(16)3
Avg Revenue beat(16)-1.16%
PT rev (1m)-5.36%
PT rev (3m)-8.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.78%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.11 | ||
| Fwd PE | 18.53 | ||
| P/S | 6.92 | ||
| P/FCF | 21.92 | ||
| P/OCF | 19.34 | ||
| P/B | 10.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.18 |
EPS(TTM)5.04
EY4.52%
EPS(NY)6.01
Fwd EY5.4%
FCF(TTM)5.08
FCFY4.56%
OCF(TTM)5.76
OCFY5.17%
SpS16.1
BVpS11.03
TBVpS-6.78
PEG (NY)1.84
PEG (5Y)2.06
Graham Number35.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.68% | ||
| ROE | 40.64% | ||
| ROCE | 24.63% | ||
| ROIC | 18.73% | ||
| ROICexc | 22.7% | ||
| ROICexgc | 121.58% | ||
| OM | 40.53% | ||
| PM (TTM) | 27.86% | ||
| GM | 90.88% | ||
| FCFM | 31.57% |
ROA(3y)13.68%
ROA(5y)13.48%
ROE(3y)43.07%
ROE(5y)42.31%
ROIC(3y)28.05%
ROIC(5y)28.53%
ROICexc(3y)39.45%
ROICexc(5y)39.54%
ROICexgc(3y)122.07%
ROICexgc(5y)118.33%
ROCE(3y)36.92%
ROCE(5y)37.54%
ROICexgc growth 3Y-2.65%
ROICexgc growth 5Y2.68%
ROICexc growth 3Y-20.58%
ROICexc growth 5Y-8.53%
OM growth 3Y1.57%
OM growth 5Y2.95%
PM growth 3Y-0.51%
PM growth 5Y1.82%
GM growth 3Y-0.99%
GM growth 5Y-0.7%
F-Score5
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 2.72 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 87.31% | ||
| Cap/Sales | 4.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.89% | ||
| Profit Quality | 113.34% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 3.02 |
F-Score5
WACC8.13%
ROIC/WACC2.3
Cap/Depr(3y)100.38%
Cap/Depr(5y)88.13%
Cap/Sales(3y)3.56%
Cap/Sales(5y)3.37%
Profit Quality(3y)100.66%
Profit Quality(5y)101.87%
High Growth Momentum
Growth
EPS 1Y (TTM)6.33%
EPS 3Y9.82%
EPS 5Y10.74%
EPS Q2Q%5.17%
EPS Next Y12.04%
EPS Next 2Y9.87%
EPS Next 3Y8.62%
EPS Next 5Y8.2%
Revenue 1Y (TTM)9.08%
Revenue growth 3Y6.51%
Revenue growth 5Y6.64%
Sales Q2Q%16.8%
Revenue Next Year17.42%
Revenue Next 2Y11.53%
Revenue Next 3Y9.66%
Revenue Next 5Y8.19%
EBIT growth 1Y5.58%
EBIT growth 3Y8.18%
EBIT growth 5Y9.79%
EBIT Next Year30.45%
EBIT Next 3Y14.94%
EBIT Next 5Y10.89%
FCF growth 1Y-2.33%
FCF growth 3Y5.13%
FCF growth 5Y5.19%
OCF growth 1Y1.88%
OCF growth 3Y6.14%
OCF growth 5Y5.7%
PAYCHEX INC / PAYX FAQ
Can you provide the ChartMill fundamental rating for PAYCHEX INC?
ChartMill assigns a fundamental rating of 6 / 10 to PAYX.
What is the valuation status for PAYX stock?
ChartMill assigns a valuation rating of 4 / 10 to PAYCHEX INC (PAYX). This can be considered as Fairly Valued.
How profitable is PAYCHEX INC (PAYX) stock?
PAYCHEX INC (PAYX) has a profitability rating of 9 / 10.
What is the financial health of PAYCHEX INC (PAYX) stock?
The financial health rating of PAYCHEX INC (PAYX) is 4 / 10.
How sustainable is the dividend of PAYCHEX INC (PAYX) stock?
The dividend rating of PAYCHEX INC (PAYX) is 6 / 10 and the dividend payout ratio is 91.97%.