Paychex, Inc. (PAYX) Stock

About Paychex, Inc.

Founded in 1971 and headquartered in Rochester, New York, Paychex, Inc. delivers comprehensive human capital management (HCM) solutions. The company primarily serves small to medium-sized enterprises (SMEs) across the United States, Europe, and India, addressing their needs in human resources, payroll administration, employee benefits, and insurance. Its diverse service portfolio includes: Payroll Management: Encompassing core payroll processing, payroll tax administration, employee payment facilitation, and ensuring compliance with regulations like new-hire reporting and garnishment processing. Human Resources Solutions: Providing support for employer compliance, HR and employee benefits administration, risk management outsourcing, and even the availability of professionally trained on-site HR representatives. Retirement Services: Offering full administration for retirement plans, which covers implementation, ongoing adherence to government regulations, reporting for both participants and employers, online access capabilities, electronic funds transfers, and other administrative tasks. Cloud-based HR Software: A suite of software products designed for efficient HR administration, including tools for benefits management, time and attendance tracking, digital communication, recruitment, and onboarding processes. Additional Business Services: This category features plan administration outsourcing, state unemployment insurance services, and various support functions for SMBs such as payroll funding and outsourcing (including payroll processing, invoicing, and tax preparation), payment processing solutions, financial wellness programs, and a resource center for small business loans. Insurance Offerings: Providing both property and casualty coverage, which includes workers' compensation, business-owner policies, cybersecurity protection, and commercial auto insurance, alongside health and benefits coverage like medical, dental, vision, and life insurance. Paychex primarily distributes its services through its dedicated direct sales team.

Paychex, Inc. is led by CEO John Gibson Jr., employs 16,500 people, headquartered in Rochester, US, publicly traded since 1983.

Paychex, Inc. (PAYX) stock trades at $115.48 with a market capitalization of $41.07B. The stock is valued at a price-to-earnings (P/E) ratio of 20.69, price-to-book of 8.37, price-to-sales of 5.29. Over the past 52 weeks the stock has ranged between $85.45 and $152.57, and currently trades 24.3% below its 52-week high. It pays a dividend yielding 4.61%.

On profitability, Paychex, Inc. generates a return on equity (ROE) of 40.94% — well above the market average, a sign of a high-quality business, return on capital employed of 53.49%, an operating margin of 36.90%, a net profit margin of 25.84%.

In its most recent fiscal year, Paychex, Inc. reported annual revenue of $5.6B, net profit of $1.7B, revenue has compounded at 6.6% a year over the last five years, profit at 8.6% a year. Profit growing faster than revenue points to expanding margins.

The balance sheet shows a debt-to-equity ratio of 1.25, a current ratio of 1.28, total assets of $16.6B, $1.6B in cash and equivalents.

PAYX has an average daily trading volume of 3,330,000 shares, a beta of 0.83.

Official website: www.paychex.com