Paychex Piotroski F Score

PAYX
 Stock
  

USD 120.47  2.74  2.22%   

This module uses fundamental data of Paychex to approximate its Piotroski F score. Paychex F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Paychex. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Paychex financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Please check Paychex Altman Z Score, Paychex Correlation, Paychex Valuation, as well as analyze Paychex Alpha and Beta and Paychex Hype Analysis.
  
Paychex Long Term Debt to Equity is fairly stable at the moment as compared to the past year. Paychex reported Long Term Debt to Equity of 0.26 in 2021. Debt to Equity Ratio is likely to rise to 0.30 in 2022, whereas Total Debt is likely to drop slightly above 724.2 M in 2022. Paychex Earnings per Basic Share are fairly stable at the moment as compared to the past year. Paychex reported Earnings per Basic Share of 3.86 in 2021. Earnings per Diluted Share is likely to rise to 4.14 in 2022, whereas PPandE Turnover is likely to drop 9.70 in 2022.
At this time, it appears that Paychex's Piotroski F Score is Frail. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
3.0
Piotroski F Score - Frail
1
Current Return On AssetsPositiveFocus
2
Change in Return on AssetsDecreasedFocus
3
Cash Flow Return on AssetsPositiveFocus
4
Current Quality of Earnings (accrual)DecreasingFocus
5
Asset Turnover GrowthDecreaseFocus
6
Current Ratio ChangeDecreaseFocus
7
Long Term Debt Over Assets ChangeLower LeverageFocus
8
Change In Outstending SharesIncreaseFocus
9
Change in Gross MarginNo ChangeFocus

Paychex Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Paychex is to make sure Paychex is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Paychex's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Paychex's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Weighted Average Shares Diluted401.2 M363.1 M
Significantly Up
Increasing
Slightly volatile
Weighted Average Shares398.9 M360.6 M
Significantly Up
Increasing
Slightly volatile
Return on Average Assets12.5514.768
Fairly Down
Increasing
Slightly volatile
Net Cash Flow from Operations1.2 B1.5 B
Significantly Down
Increasing
Slightly volatile
Current Liabilities4.7 B5.3 B
Fairly Down
Increasing
Slightly volatile
Total Liabilities5.6 B6.5 B
Fairly Down
Increasing
Slightly volatile
Gross Margin66.4870.59
Notably Down
Decreasing
Slightly volatile
Total Debt724.2 M728.5 M
Slightly Down
Decreasing
Slightly volatile
Asset Turnover0.440.489
Moderately Down
Increasing
Slightly volatile
Current Assets5.7 B6.6 B
Fairly Down
Increasing
Slightly volatile
Total Assets8.1 B9.6 B
Fairly Down
Increasing
Slightly volatile

Paychex F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Paychex's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Paychex in a much-optimized way.

About Paychex Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Book Value per Share

7.41

Paychex Book Value per Share is fairly stable at the moment as compared to the past year. Paychex reported Book Value per Share of 8.39 in 2021

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

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.
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.

Be your own money manager

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Please check Paychex Altman Z Score, Paychex Correlation, Paychex Valuation, as well as analyze Paychex Alpha and Beta and Paychex Hype Analysis. You can also try Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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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.