Paychex Fundamentals

PAYX
 Stock
  

USD 123.16  0.05  0.0406%   

Paychex fundamentals help investors to digest information that contributes to Paychex's financial success or failures. It also enables traders to predict the movement of Paychex Stock. The fundamental analysis module provides a way to measure Paychex's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Paychex stock.
This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.
  
Paychex Net Income is fairly stable at the moment as compared to the past year. Paychex reported Net Income of 1.39 Billion in 2021. Weighted Average Shares is likely to rise to about 398.9 M in 2022, whereas Consolidated Income is likely to drop slightly above 1 B in 2022.

Paychex Total Debt Analysis

Paychex's Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
 2019 2020 2021 2022 (projected)
Accounts Payable79.4 M89 M105.7 M114.04 M
Receivables790.3 M1.05 B1.32 B1.42 B
Total Debt 
 = 
Bonds 
+  
Notes 
More About Total Debt | All Equity Analysis

Current Paychex Total Debt

    
  879.1 M  
Most of Paychex's fundamental indicators, such as Total Debt, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Paychex is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Compare to competition

Based on the latest financial disclosure, Paychex has a Total Debt of 879.1 M. This is 54.72% lower than that of the Industrials sector and significantly higher than that of the Staffing & Employment Services industry. The total debt for all United States stocks is 83.47% higher than that of the company.

Paychex Fundamental Drivers 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 considered to be number one stock in cash per share category among related companies. It is considered to be number one stock in return on equity category among related companies reporting about  13.65  of Return On Equity per Cash per Share. Average Equity is likely to drop to about 2.6 B in 2022. 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 Cash Flow from Operations Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Paychex's direct or indirect competition against its Cash Flow from Operations to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Paychex could also be used in its relative valuation, which is a method of valuing Paychex by comparing valuation metrics of similar companies.
Paychex is currently under evaluation in cash flow from operations category among related companies.

Paychex Current Valuation Drivers

We derive many important indicators used in calculating different scores of Paychex from analyzing Paychex's financial statements. These drivers represent accounts that assess Paychex's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Paychex's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee65.29 K66.31 K69.31 K73.17 K87.05 K70.06 K
Revenue Per Employee236.43 K241.83 K255.03 K270.45 K288.23 K243.95 K
Average Assets6.38 B6.5 B7.52 B8.27 B9.51 B8.71 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA1.41 B1.5 B1.59 B1.59 B1.99 B1.58 B
Earnings Before Interest Taxes and Depreciation Amortization USD1.27 B1.39 B1.45 B1.55 B1.78 B1.61 B
Earnings before Tax1.15 B1.26 B1.3 B1.37 B1.57 B1.43 B
Average Equity1.86 B1.91 B2.08 B2.51 B2.88 B2.56 B
Enterprise Value19.27 B21.14 B23.3 B30.92 B35.56 B28.71 B
Free Cash Flow920.5 M866.1 M1.12 B1.15 B1.32 B1.16 B
Invested Capital1.22 B1.21 B1.31 B1.73 B1.99 B1.73 B
Invested Capital Average1.04 B1.25 B1.2 B1.51 B1.74 B1.55 B
Market Capitalization19.53 B21.28 B23.56 B30.83 B35.46 B28.77 B
Tangible Asset Value5.71 B6.12 B6.96 B6.49 B7.47 B7.29 B
Working Capital497.7 M546.9 M596.9 M832.7 M957.61 M812.82 M

Paychex ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Paychex's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Paychex's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Paychex Fundamentals

About Paychex Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Paychex's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Paychex using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Paychex based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Last ReportedProjected for 2022
Deferred Revenue46.3 M50 M
Cost of Revenue1.4 B1.2 B
Revenues4.6 B3.7 B
Revenue to Assets 0.48  0.43 
Revenue Per Employee288.2 K243.9 K

Paychex Investors Sentiment

The influence of Paychex's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Paychex. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Paychex's public news can be used to forecast risks associated with investment in Paychex. The trend in average sentiment can be used to explain how an investor holding Paychex can time the market purely based on public headlines and social activities around Paychex. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Paychex's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Paychex's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Paychex's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Paychex.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Paychex in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Paychex's short interest history, or implied volatility extrapolated from Paychex options trading.

Currently Active Assets on Macroaxis

Please check Paychex Piotroski F Score and Paychex Altman Z Score analysis. You can also try Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

Complementary Tools for analysis

When running Paychex price analysis, check to measure Paychex's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Paychex is operating at the current time. Most of Paychex's value examination focuses on studying past and present price action to predict the probability of Paychex's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Paychex's price. Additionally, you may evaluate how the addition of Paychex to your portfolios can decrease your overall portfolio volatility.
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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.
Quarterly Earnings Growth YOY
0.14
Market Capitalization
44.4 B
Quarterly Revenue Growth YOY
0.11
Return On Assets
0.13
Return On Equity
0.47
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.