110.78 USD
+0.24 (+0.22%)
110.78 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. PAYX has an excellent profitability rating, but 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.
In the past year PAYX had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 9.68%, PAYX is in the better half of the industry, outperforming 78.16% of the companies in the same industry.
With an excellent Return On Equity value of 40.64%, PAYX belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
PAYX has a Return On Invested Capital of 18.73%. This is amongst the best in the industry. PAYX outperforms 88.51% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PAYX is significantly above the industry average of 12.17%.
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
PAYX's Profit Margin of 27.86% is amongst the best of the industry. PAYX outperforms 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.
PAYX's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, PAYX has about the same amount of shares outstanding.
PAYX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PAYX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.00 indicates that PAYX is not in any danger for bankruptcy at the moment.
PAYX has a Altman-Z score of 3.00. This is comparable to the rest of the industry: PAYX outperforms 59.77% of its industry peers.
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 |
ROIC/WACC2.28
WACC8.21%
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.
PAYX's Current ratio of 1.27 is on the low side compared to the rest of the industry. PAYX is outperformed by 60.92% of its industry peers.
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.
PAYX's Quick ratio of 1.27 is on the low side compared to the rest of the industry. PAYX is outperformed by 60.92% of its industry peers.
| 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%.
The Earnings Per Share has been growing by 10.74% on average over the past years. This is quite good.
PAYX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.08%.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
PAYX is valuated rather expensively with a Price/Earnings ratio of 21.98.
Compared to the rest of the industry, the Price/Earnings ratio of PAYX is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.15. PAYX is around the same levels.
Based on the Price/Forward Earnings ratio of 18.43, the valuation of PAYX can be described as rather expensive.
PAYX's Price/Forward Earnings ratio is in line with the industry average.
PAYX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.22, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.98 | ||
| Fwd PE | 18.43 |
4.2 Price Multiples
PAYX's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, PAYX is valued a bit cheaper than 65.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.8 | ||
| EV/EBITDA | 16.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of PAYX may justify a higher PE ratio.
PEG (NY)1.83
PEG (5Y)2.05
EPS Next 2Y9.87%
EPS Next 3Y8.62%
5. Dividend
5.1 Amount
PAYX has a Yearly Dividend Yield of 3.88%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.07, 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 2.32, PAYX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
5.2 History
The dividend of PAYX is nicely growing with an annual growth rate of 10.17%!
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%
110.78
+0.24 (+0.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners81.52%
Inst Owner Change-1.53%
Ins Owners10.57%
Ins Owner Change-1.99%
Market Cap39.87B
Revenue(TTM)5.79B
Net Income(TTM)1.61B
Analysts53.91
Price Target137.66 (24.26%)
Short Float %4.77%
Short Ratio4.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
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)-0.05%
EPS NQ rev (3m)-2.19%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.98 | ||
| Fwd PE | 18.43 | ||
| P/S | 6.88 | ||
| P/FCF | 21.8 | ||
| P/OCF | 19.23 | ||
| P/B | 10.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.06 |
EPS(TTM)5.04
EY4.55%
EPS(NY)6.01
Fwd EY5.43%
FCF(TTM)5.08
FCFY4.59%
OCF(TTM)5.76
OCFY5.2%
SpS16.1
BVpS11.03
TBVpS-6.78
PEG (NY)1.83
PEG (5Y)2.05
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 |
F-Score5
WACC8.21%
ROIC/WACC2.28
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%.