PAYX:NSD-Paychex, Inc (USD)

COMMON STOCK | Staffing & Employment Services | NSD

Last Closing Price

USD 96.36

Change

+0.32 (+0.33)%

Market Cap

USD 34.60B

Volume

1.41M

Average Target Price

USD 95.40 (-1.00%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

Paychex, Inc. provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small- to medium-sized businesses in the United States and Europe. The company offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing. It also provides HR solutions, including payroll, employer compliance, HR and employee benefits administration, risk management outsourcing, and the on-site availability of a professionally trained HR representative; and retirement services administration, including plan implementation, ongoing compliance with government regulations, employee and employer reporting, participant and employer online access, electronic funds transfer, and other administrative services. In addition, the company offers cloud-based HR administration software products for employee benefits management and administration, time and attendance, recruiting, and onboarding solutions; plan administration outsourcing and state unemployment insurance services; various business services to small to medium-sized businesses comprising payroll funding and outsourcing services, which include payroll processing, invoicing, and tax preparation; and payment processing services, financial fitness programs, and a small-business loan resource center. Further, it provides insurance services for property and casualty coverage, such as workers' compensation, business-owner policies, cyber security protection, and commercial auto, as well as health and benefits coverage, including health, dental, vision, and life. The company markets and sells its services primarily through its direct sales force. Paychex, Inc. was founded in 1979 and is headquartered in Rochester, New York.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2021-04-09 )

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ETFs Containing PAYX

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LVL Invesco S&P Global Divide.. 0.00 % 0.64 %

N/A

USD0.03B

Market Performance

  Market Performance vs.
Industry/Classification (Staffing & Employment Services)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 3.41% 25% F 41% F
Dividend Return 0.67% 100% A+ 48% F
Total Return 4.08% 25% F 41% F
Trailing 12 Months  
Capital Gain 44.82% 25% F 41% F
Dividend Return 3.73% 100% A+ 61% D-
Total Return 48.54% 25% F 42% F
Trailing 5 Years  
Capital Gain 81.67% 67% D+ 61% D-
Dividend Return 20.66% 100% A+ 76% C
Total Return 102.34% 67% D+ 64% D
Average Annual (5 Year Horizon)  
Capital Gain 9.81% 38% F 59% F
Dividend Return 3.27% 100% A+ 76% C
Total Return 13.09% 38% F 62% D-
Risk Return Profile  
Volatility (Standard Deviation) 15.98% 100% A+ 82% B-
Risk Adjusted Return 81.87% 94% A 88% B+
Market Capitalization 34.60B 94% A 97% A+
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Staffing & Employment Services)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 32.89 33% F 34% F
Price/Book Ratio 11.91 31% F 15% F
Price / Cash Flow Ratio 24.01 33% F 20% F
EV/EBITDA 21.47 31% F 43% F
Management Effectiveness  
Return on Equity 36.79% 86% B 96% A
Return on Invested Capital 32.05% 94% A 95% A
Return on Assets 9.19% 88% B+ 94% A
Debt to Equity Ratio 28.65% 50% F 54% F
Technical Ratios  
Short Ratio 3.44 13% F 33% F
Short Percent 2.11% 31% F 64% D
Beta 0.91 73% C 66% D
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Dividend Growth

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

What to not like:
Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.