111.41 USD
-0.7 (-0.62%)
111.41 USD
0 (0%)
Taking everything into account, PAYX scores 6 out of 10 in our fundamental rating. 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 has a correct valuation and a medium 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's Return On Invested Capital of 18.73% is amongst the best of the industry. PAYX outperforms 88.51% of its industry peers.
PAYX had an Average Return On Invested Capital over the past 3 years of 28.05%. This is significantly above the industry average of 12.15%.
The 3 year average ROIC (28.05%) for PAYX is well above the current ROIC(18.73%). The reason for the recent decline needs to be investigated.
| 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 has a Profit Margin of 27.86%. This is amongst the best in the industry. PAYX outperforms 95.40% of its industry peers.
PAYX's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 40.53%, PAYX belongs to the best 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.
The Gross Margin of PAYX (90.88%) is better 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.
The number of shares outstanding for PAYX has been increased compared to 5 years ago.
The debt/assets ratio for PAYX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.02 indicates that PAYX is not in any danger for bankruptcy at the moment.
PAYX has a Altman-Z score of 3.02. 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.
A Debt/Equity ratio of 1.15 is on the high side and indicates that PAYX has dependencies on debt financing.
PAYX's Debt to Equity ratio of 1.15 is on the low side compared to the rest of the industry. PAYX is outperformed by 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.
PAYX has a Current ratio of 1.27. This is in the lower half of the industry: PAYX underperforms 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.
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%.
The Earnings Per Share has been growing by 10.74% on average over the past years. This is quite good.
The Revenue has grown by 9.08% in the past year. This is quite good.
The Revenue has been growing slightly by 6.64% on average over the past years.
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.
Based on estimates for the next years, PAYX will show a quite strong growth in Revenue. The Revenue will grow by 8.19% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 22.11, which indicates a rather expensive current valuation of PAYX.
PAYX's Price/Earnings is on the same level as the industry average.
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 18.53, the valuation of PAYX can be described as rather expensive.
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
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PAYX is on the same level as its industry peers.
PAYX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PAYX is cheaper than 66.67% of the companies 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 PAYX does not grow enough to justify the current Price/Earnings ratio.
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
PAYX has a Yearly Dividend Yield of 3.98%. Purely for dividend investing, there may be better candidates out there.
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.
PAYX's Dividend Yield is rather good when compared to the industry average which is at 4.43. PAYX pays more dividend than 90.80% of the companies 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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)10.17%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
PAYX pays out 91.97% of its income as dividend. 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 5 / 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%.