109.91 USD
-1.55 (-1.39%)
109.91 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 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 better Return On Invested Capital (18.73%) than 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 12.15%.
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
Looking at the Profit Margin, with a value of 27.86%, PAYX belongs to the top of the industry, outperforming 95.40% of the companies in the same industry.
PAYX's Profit Margin has improved in the last couple of years.
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.
PAYX's Operating Margin has improved in the last couple of years.
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
PAYX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
PAYX has an Altman-Z score of 3.02. This indicates that PAYX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.02, PAYX is in the better half of the industry, outperforming 60.92% of the companies in the same industry.
PAYX has a debt to FCF ratio of 2.72. This is a good value and a sign of high solvency as PAYX would need 2.72 years to pay back of all of its debts.
PAYX has a Debt to FCF ratio of 2.72. This is in the better half of the industry: PAYX outperforms 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/WACC2.29
WACC8.17%
2.3 Liquidity
A Current Ratio of 1.27 indicates that PAYX should not have too much problems paying its short term obligations.
The Current ratio of PAYX (1.27) is worse than 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 has a worse Quick ratio (1.27) than 60.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.33% over the past year.
PAYX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.74% yearly.
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
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.
The Revenue is expected to grow by 8.19% on average over the next years. This is quite good.
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.
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
Based on the Price/Earnings ratio of 21.81, the valuation of PAYX can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as PAYX.
The average S&P500 Price/Earnings ratio is at 25.65. PAYX is around the same levels.
Based on the Price/Forward Earnings ratio of 18.28, the valuation of PAYX can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as PAYX.
PAYX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.45, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.81 | ||
| Fwd PE | 18.28 |
4.2 Price Multiples
PAYX's Enterprise Value to EBITDA ratio is in line with the industry average.
65.52% of the companies in the same industry are more expensive than PAYX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.63 | ||
| 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)1.81
PEG (5Y)2.03
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.
In the last 3 months the price of PAYX has falen by -21.19%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
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 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
91.97% of the earnings are spent on dividend by PAYX. This is not a sustainable payout ratio.
PAYX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP91.97%
EPS Next 2Y9.87%
EPS Next 3Y8.62%
109.91
-1.55 (-1.39%)
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 Cap39.56B
Revenue(TTM)5.79B
Net Income(TTM)1.61B
Analysts53.91
Price Target137.66 (25.25%)
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 | 21.81 | ||
| Fwd PE | 18.28 | ||
| P/S | 6.83 | ||
| P/FCF | 21.63 | ||
| P/OCF | 19.08 | ||
| P/B | 9.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.18 |
EPS(TTM)5.04
EY4.59%
EPS(NY)6.01
Fwd EY5.47%
FCF(TTM)5.08
FCFY4.62%
OCF(TTM)5.76
OCFY5.24%
SpS16.1
BVpS11.03
TBVpS-6.78
PEG (NY)1.81
PEG (5Y)2.03
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
WACC8.17%
ROIC/WACC2.29
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%.