Paychex Stock Financials

PAYX
 Stock
  

USD 125.90  1.87  1.51%   

Net Income Per Employee is likely to drop to about 70.1 K in 2022. Revenue Per Employee is likely to drop to about 243.9 K in 2022.
  
With this module, you can analyze Paychex financials for your investing period. You should be able to track the changes in Paychex individual financial statements over time to develop the understanding of its risk, liquidity, profitability, or other critical and vital indicators.
Understanding current and past Paychex Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of Paychex's financial statements are interrelated, with each one affecting the others. For example, an increase in Paychex's assets may result in an increase in income on the income statement.

Revenues

3.72 Billion

The financial analysis of Paychex is a critical element in measuring its lifeblood. The essential information of the day-to-day investment outlook for Paychex includes many different criteria found on its balance sheet. For example, investors should never minimize Paychex's ability to pay suppliers or employees on time, making sure interest payments are not accumulating or correctly timing where and how to re-invest extra cash. Any individual investor needs to monitor Paychex's cash flow, debt, and profitability to effectively and accurately make more informed decisions on whether to invest in Paychex.

Paychex Cash

Chance Of Financial Distress
Less than 9
Paychex has less than 9 (%) percent chance of experiencing financial distress in the next two years of operations. The calculation of odds of distress for Paychex stock is tightly coupled with the Probability of Bankruptcy. It complements the equity performance score by supplying investors with insight into company financials without requiring them to know too much about all of the complex accounting and financial indicators surrounding the entity. More Info
The data published in Paychex's official financial statements usually reflect Paychex's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Paychex. For example, before you start analyzing numbers published by Paychex accountants, it's critical to develop an understanding of what Paychex's liquidity, profitability, and earnings quality are in the context of the IT Services space in which it operates.
Please note, the presentation of Paychex's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Paychex's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Paychex's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Paychex. Please utilize our Beneish M Score to check the likelihood of Paychex's management to manipulate its earnings.

Paychex Company Summary

Paychex competes with Linde PLC, Anheuser-Busch InBev, Etsy, Anheuser Busch, and Home Depot. Paychex, Inc. provides integrated human capital management solutions for human resources , payroll, benefits, and insurance services for small to medium-sized businesses in the United States, Europe, and India. The company was founded in 1971 and is headquartered in Rochester, New York. Paychex operates under Staffing Employment Services classification in the United States and is traded on NASDAQ Exchange. It employs 16000 people.
Specialization
Services, Business Services
InstrumentUSA Stock View All
ExchangeNASDAQ Exchange
CIK Number0000723531
ISINUS7043261079
RegionNorth America
Business Address911 Panorama Trail
SectorIT Services
IndustryInformation Technology
BenchmarkNYSE Composite
Websitewww.paychex.com
Phone585 385 6666
CurrencyUSD - US Dollar
You should never invest in Paychex without having analyzed its financial statements. Do not rely on someone else's analysis or guesses about the future performance of Paychex Stock, because this is throwing your money away. Analyzing the key information contained in Paychex's financial statements can give you an edge over other investors and help to ensure that your investments perform well for you.

Paychex Key Financial Ratios

Generally speaking, Paychex's financial ratios allow both analysts and investors to convert raw data from Paychex's financial statements into concise, actionable information that can be used to evaluate the performance of Paychex over time and compare it to other companies across industries. There are many critical financial ratios that investors are exposed to on a daily basis, but they are usually grouped into few meaningful categories from each financial statement that Paychex reports annually and quarterly.

Paychex Key Balance Sheet Accounts

201720182019202020212022 (projected)
Receivables563.6 M854.2 M790.3 M1.05 B1.32 B1.42 B
Accounts Payable74.5 M75.9 M79.4 M89 M105.7 M114.04 M
Total Assets7.46 B8.68 B8.55 B9.23 B9.64 B8.08 B
Current Assets5.78 B5.68 B5.46 B6.17 B6.58 B5.67 B
Assets Non Current1.58 B1.56 B2.02 B3 B3.45 B2.73 B
Cash and Equivalents358.2 M673.6 M905.2 M995.2 M370 M342.44 M
Deferred Revenue26.3 M22.9 M34.6 M40.3 M46.34 M50 M
Deposit Liabilities3.96 B4.27 B4.73 B3.78 B4.35 B4.65 B
Shareholders Equity2.02 B2.62 B2.78 B2.95 B3.09 B2.5 B
Investments661.7 M592.8 M361.5 M55.7 M50.13 M51.45 M
Investments Current220.6 M138.8 M66 M39 M35.1 M36.02 M
Total Liabilities5.44 B6.06 B5.77 B6.28 B6.55 B5.58 B
Current Liabilities5.29 B4.84 B4.43 B4.94 B5.27 B4.7 B
Tax Assets35.4 M69.9 M17 M22.6 M20.34 M28.01 M
Tax Liabilities94.9 M79.5 M172.8 M250.4 M287.96 M310.69 M

Paychex Key Income Statement Accounts

An income statement is very similar to a cash flow statement, but instead of showing net revenue minus expenses, it only includes earnings before interest and taxes (EBIT). This number does not have all of the same line items that are on a cash flow statement, but it leaves out non-cash expenses like depreciation and amortization. For example, if you bought $100 worth of goods from Walmart (WMT) using your debit card that has an interest rate of 20%, then paid off the balance at the end of the month with a credit card that charges 30% interest, you would have an income statement showing EBIT of $80 because your expenses are lower than the amount that went into your pocket. The other reason investors look at the income statement is to determine what Paychex's earnings per share (EPS) will be in order to see if they want to buy more shares or not. For example, if a company earned $20 million in the last quarter and has 100,000 shares outstanding, its EPS is 20 cents. If you find that this number beats analysts' forecasts or is higher than it was from the same period last year, then you might want to buy more of this stock even though its price per share may not have changed.
201720182019202020212022 (projected)
Consolidated Income756.8 M826.3 M994.1 M1.03 B1.19 B1.03 B
Cost of Revenue857.1 M919.4 M1.02 B1.18 B1.35 B1.19 B
Gross Profit2.09 B2.23 B2.36 B2.59 B2.98 B2.67 B
Net Income933.7 M1.03 B1.1 B1.1 B1.39 B1.5 B
Operating Expenses948.2 M979.7 M1.07 B1.22 B1.41 B1.24 B
Operating Income1.29 B1.37 B1.46 B1.46 B1.84 B1.46 B
Revenues3.38 B3.77 B4.04 B4.06 B4.61 B3.72 B
Income Tax Expense394.3 M432.8 M306 M333.6 M383.64 M398.54 M

Paychex Key Cash Accounts

Cash flow analysis captures how much money flows into and out of Paychex. It measures of how well Paychex is doing because it can show the actual money that comes into and out of the company from sales instead of measuring expenses against revenue to determine earnings. You have to read the cash flow statement in three sections. The first section shows how much money Paychex brought in, usually known as net revenue or sales. This is different from earnings because it does not include expenses when determining net revenue for use on this part of the cash flow statement. Next, are operating activities, which show how much money Paychex had leftover after paying for its expenses. This number can be calculated in two ways: by subtracting the total of all operating expenses from net revenue or by adding up changes to cash and other assets or liabilities on this part of the statement. The third section is about investing activities, which shows what Paychex has done with the money that it received from the sale of assets or what it spent to acquire new ones. This section can be broken down into two parts: investing in existing businesses (in other words, buying more stock) and investing in non-business activities like paying off debt or making acquisitions.
201720182019202020212022 (projected)
Capital Expenditure(97.7 M)(94.3 M)(154 M)(123.8 M)(111.42 M)(120.22 M)
Depreciation Amortization and Accretion115.1 M126.9 M138 M181.5 M208.72 M176.1 M
Net Cash Flow or Change in Cash and Cash Equivalents(38.5 M)(184.5 M)1.85 B(1.37 B)(1.57 B)(1.61 B)
Issuance Purchase of Equity Shares(107.9 M)(166.2 M)(143.1 M)(56.9 M)(51.21 M)(55.25 M)
Payment of Dividends and Other Cash Distributions(606.5 M)(662.3 M)(739.7 M)(826.8 M)(744.12 M)(802.87 M)
Net Cash Flow from Financing(423.8 M)(1.01 B)(1.49 B)(636.4 M)(979.3 M)(1.06 B)
Net Cash Flow from Investing(679 M)(1.63 B)771.9 M(460.6 M)(1.42 B)(1.46 B)
Net Cash Flow Investment Acquisitions and Disposals339.7 M(559.3 M)1.37 B(507 M)(583.05 M)(598.39 M)
Net Cash Flow from Operations1.28 B1.27 B1.44 B1.26 B1.51 B1.22 B
Share Based Compensation34.6 M35.4 M44.6 M46.2 M53.13 M46.18 M

Paychex Financial Ratios Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Paychex's current stock value. Our valuation model uses many indicators to compare Paychex value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Paychex competition to find correlations between indicators driving Paychex's intrinsic value. More Info.
Paychex is regarded fourth in total asset category among related companies. It is regarded second in shares owned by institutions category among related companies . The ratio of Total Asset to Shares Owned by Institutions for Paychex is about  131,826,515 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Paychex by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Paychex's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Paychex's earnings, one of the primary drivers of an investment's value.

Paychex Systematic Risk

Paychex's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. Paychex volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
Incorrect Input. Please change your parameters or increase the time horizon required for running this function. The output start index for this execution was zero with a total number of output elements of zero. The Beta measures systematic risk based on how returns on Paychex correlated with the market. If Beta is less than 0 Paychex generally moves in the opposite direction as compared to the market. If Paychex Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one Paychex is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of Paychex is generally in the same direction as the market. If Beta > 1 Paychex moves generally in the same direction as, but more than the movement of the benchmark.
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About Paychex Financials

What exactly are Paychex Financials? Typically, a company's financial statements are the reports that show the financial position of the company. Three primary documents fall into the category of financial statements. These documents include Paychex's income statement, its balance sheet, and the statement of cash flows. Potential Paychex investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Paychex investors may use each financial statement separately, they are all related. The changes in Paychex's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Paychex's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines you should consider when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase yearly due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt-to-equity ratio because this number will tell you how much risk it has. If a company such as Paychex is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to determine if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that the net revenue of Paychex has grown by more than 25% over the last five years, then there is a good chance that it will continue growing at least by 20% or more each year. On the other hand, if you see that net revenue has only increased by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it.

Paychex Thematic Clasifications

Paychex is part of Outsourcing investing theme. If you are a theme-oriented, socially responsible, and at the same time, a result-driven investor, you can align your investing habits with your values without jeopardizing your expectations about returns. You can easily create an optimal portfolio of stocks, ETFs, funds, or cryptocurrencies based on a specific theme of your liking. Outsourcing and staffing services. Companies involved in providing outsourcing and staffing services to business across different domains
Outsourcing Idea
OutsourcingView
This theme covers Outsourcing and staffing services. Companies involved in providing outsourcing and staffing services to business across different domains. Get More Thematic Ideas

Paychex December 2, 2022 Opportunity Range

Along with financial statement analysis, the daily predictive indicators of Paychex help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Paychex. We use our internally-developed statistical techniques to arrive at the intrinsic value of Paychex based on widely used predictive technical indicators. In general, we focus on analyzing Paychex Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Paychex's daily price indicators and compare them against related drivers.
Downside Deviation1.7
Information Ratio(0.043832)
Maximum Drawdown7.55
Value At Risk(2.70)
Potential Upside3.23
Please check Your Equity Center. You can also try Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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Is Paychex's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Paychex. If investors know Paychex will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Paychex listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Paychex is measured differently than its book value, which is the value of Paychex that is recorded on the company's balance sheet. Investors also form their own opinion of Paychex's value that differs from its market value or its book value, called intrinsic value, which is Paychex's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Paychex's market value can be influenced by many factors that don't directly affect Paychex's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Paychex's value and its price as these two are different measures arrived at by different means. Investors typically determine Paychex value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Paychex's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.