113.77 USD
-0.48 (-0.42%)
113.77 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. While PAYX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PAYX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
PAYX had positive earnings in the past year.
PAYX had a positive operating cash flow in the past year.
Each year in the past 5 years PAYX has been profitable.
PAYX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PAYX has a better Return On Assets (9.66%) than 77.91% of its industry peers.
Looking at the Return On Equity, with a value of 41.13%, PAYX belongs to the top of the industry, outperforming 93.02% of the companies in the same industry.
PAYX's Return On Invested Capital of 19.25% is amongst the best of the industry. PAYX outperforms 89.53% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PAYX is significantly above the industry average of 11.80%.
The last Return On Invested Capital (19.25%) 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 | 9.66% | ||
| ROE | 41.13% | ||
| ROIC | 19.25% |
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 (26.45%) is better than 94.19% 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 39.76%, PAYX belongs to the top of the industry, outperforming 98.84% of the companies in the same industry.
In the last couple of years the Operating Margin of PAYX has grown nicely.
With an excellent Gross Margin value of 91.14%, PAYX belongs to the best of the industry, outperforming 98.84% of the companies in the same industry.
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 | 39.76% | ||
| PM (TTM) | 26.45% | ||
| GM | 91.14% |
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
PAYX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
PAYX has about the same amout of shares outstanding than it did 1 year ago.
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
PAYX has an Altman-Z score of 3.09. This indicates that PAYX is financially healthy and has little risk of bankruptcy at the moment.
PAYX has a Altman-Z score of 3.09. This is comparable to the rest of the industry: PAYX outperforms 59.30% of its industry peers.
PAYX has a debt to FCF ratio of 2.53. This is a good value and a sign of high solvency as PAYX would need 2.53 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.53, PAYX is in the better half of the industry, outperforming 68.60% of the companies in the same industry.
A Debt/Equity ratio of 1.18 is on the high side and indicates that PAYX has dependencies on debt financing.
PAYX's Debt to Equity ratio of 1.18 is on the low side compared to the rest of the industry. PAYX is outperformed by 72.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 3.09 |
ROIC/WACC2.32
WACC8.3%
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: 60.47% of the companies in the same industry are doing better.
A Quick Ratio of 1.27 indicates that PAYX should not have too much problems paying its short term obligations.
The Quick ratio of PAYX (1.27) is worse than 60.47% 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 7.50%.
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 12.37% in the last year.
The Revenue has been growing slightly by 6.64% on average over the past years.
EPS 1Y (TTM)7.5%
EPS 3Y9.82%
EPS 5Y10.74%
EPS Q2Q%10.53%
Revenue 1Y (TTM)12.37%
Revenue growth 3Y6.51%
Revenue growth 5Y6.64%
Sales Q2Q%18.28%
3.2 Future
Based on estimates for the next years, PAYX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.20% on average per year.
Based on estimates for the next years, PAYX will show a quite strong growth in Revenue. The Revenue will grow by 8.20% on average per year.
EPS Next Y11.52%
EPS Next 2Y9.85%
EPS Next 3Y8.75%
EPS Next 5Y8.2%
Revenue Next Year17.22%
Revenue Next 2Y11.48%
Revenue Next 3Y9.58%
Revenue Next 5Y8.2%
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
With a Price/Earnings ratio of 22.05, PAYX is valued on the expensive side.
PAYX's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of PAYX to the average of the S&P500 Index (27.19), we can say PAYX is valued inline with the index average.
PAYX is valuated rather expensively with a Price/Forward Earnings ratio of 18.93.
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 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.05 | ||
| Fwd PE | 18.93 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PAYX.
Based on the Price/Free Cash Flow ratio, PAYX is valued a bit cheaper than the industry average as 69.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.87 | ||
| EV/EBITDA | 16.14 |
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)1.91
PEG (5Y)2.05
EPS Next 2Y9.85%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
PAYX has a Yearly Dividend Yield of 3.78%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.48, PAYX pays a better dividend. On top of this PAYX pays more dividend than 90.70% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, PAYX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
5.2 History
On average, the dividend of PAYX grows each year by 10.17%, which is quite nice.
PAYX has paid a dividend for at least 10 years, which is 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
PAYX pays out 95.21% of its income as dividend. This is not a sustainable payout ratio.
PAYX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP95.21%
EPS Next 2Y9.85%
EPS Next 3Y8.75%
113.77
-0.48 (-0.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners81.23%
Inst Owner Change-0.1%
Ins Owners10.38%
Ins Owner Change-2.09%
Market Cap40.94B
Revenue(TTM)6.03B
Net Income(TTM)1.60B
Analysts53.91
Price Target126.29 (11%)
Short Float %4.56%
Short Ratio4.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
Yearly Dividend4.02
Dividend Growth(5Y)10.17%
DP95.21%
Div Incr Years11
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.15%
Min EPS beat(2)-0.85%
Max EPS beat(2)0.54%
EPS beat(4)1
Avg EPS beat(4)-0.88%
Min EPS beat(4)-1.94%
Max EPS beat(4)0.54%
EPS beat(8)2
Avg EPS beat(8)-0.69%
EPS beat(12)3
Avg EPS beat(12)-0.63%
EPS beat(16)6
Avg EPS beat(16)0.4%
Revenue beat(2)0
Avg Revenue beat(2)-2.25%
Min Revenue beat(2)-2.65%
Max Revenue beat(2)-1.85%
Revenue beat(4)0
Avg Revenue beat(4)-2.37%
Min Revenue beat(4)-2.65%
Max Revenue beat(4)-1.85%
Revenue beat(8)0
Avg Revenue beat(8)-2.26%
Revenue beat(12)0
Avg Revenue beat(12)-2.09%
Revenue beat(16)2
Avg Revenue beat(16)-1.47%
PT rev (1m)-6.02%
PT rev (3m)-13.17%
EPS NQ rev (1m)0.65%
EPS NQ rev (3m)0.31%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-0.17%
Revenue NQ rev (1m)-1.19%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.05 | ||
| Fwd PE | 18.93 | ||
| P/S | 6.79 | ||
| P/FCF | 20.87 | ||
| P/OCF | 18.42 | ||
| P/B | 10.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.14 |
EPS(TTM)5.16
EY4.54%
EPS(NY)6.01
Fwd EY5.28%
FCF(TTM)5.45
FCFY4.79%
OCF(TTM)6.18
OCFY5.43%
SpS16.77
BVpS10.78
TBVpS-6.83
PEG (NY)1.91
PEG (5Y)2.05
Graham Number35.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.66% | ||
| ROE | 41.13% | ||
| ROCE | 25.31% | ||
| ROIC | 19.25% | ||
| ROICexc | 22.93% | ||
| ROICexgc | 111.92% | ||
| OM | 39.76% | ||
| PM (TTM) | 26.45% | ||
| GM | 91.14% | ||
| FCFM | 32.51% |
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 Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 2.53 | ||
| Debt/EBITDA | 1.66 | ||
| Cap/Depr | 75.29% | ||
| Cap/Sales | 4.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.95% | ||
| Profit Quality | 122.94% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 3.09 |
F-Score5
WACC8.3%
ROIC/WACC2.32
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)7.5%
EPS 3Y9.82%
EPS 5Y10.74%
EPS Q2Q%10.53%
EPS Next Y11.52%
EPS Next 2Y9.85%
EPS Next 3Y8.75%
EPS Next 5Y8.2%
Revenue 1Y (TTM)12.37%
Revenue growth 3Y6.51%
Revenue growth 5Y6.64%
Sales Q2Q%18.28%
Revenue Next Year17.22%
Revenue Next 2Y11.48%
Revenue Next 3Y9.58%
Revenue Next 5Y8.2%
EBIT growth 1Y6.35%
EBIT growth 3Y8.18%
EBIT growth 5Y9.79%
EBIT Next Year28.58%
EBIT Next 3Y13.78%
EBIT Next 5Y10.88%
FCF growth 1Y8.26%
FCF growth 3Y5.13%
FCF growth 5Y5.19%
OCF growth 1Y11.67%
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 of PAYCHEX INC (PAYX) stock?
ChartMill assigns a valuation rating of 4 / 10 to PAYCHEX INC (PAYX). This can be considered as Fairly Valued.
What is the profitability of PAYX stock?
PAYCHEX INC (PAYX) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for PAYX stock?
The Price/Earnings (PE) ratio for PAYCHEX INC (PAYX) is 22.05 and the Price/Book (PB) ratio is 10.55.
How financially healthy is PAYCHEX INC?
The financial health rating of PAYCHEX INC (PAYX) is 4 / 10.