Paychex Z Score

PAYX
 Stock
  

USD 125.90  1.87  1.51%   

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Please check Paychex Piotroski F Score and Paychex Valuation analysis.
  
Return on Invested Capital is likely to rise to 1.11 in 2022, whereas Capital Expenditure is likely to drop (120.2 M) in 2022. 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 Z Score Analysis

Paychex's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
 2019 2020 2021 2022 (projected)
Accounts Payable79.4 M89 M105.7 M114.04 M
Receivables790.3 M1.05 B1.32 B1.42 B
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis

Current Paychex Z Score

    
  30.0  
Most of Paychex's fundamental indicators, such as Z Score, 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.
First Factor
 = 
1.2 * (
Working Capital
/
Total Assets )
Second Factor
 = 
1.4 * (
Retained Earnings
/
Total Assets )
Thrid Factor
 = 
3.3 * (
EBITAD
/
Total Assets )
Fouth Factor
 = 
0.6 * (
Market Value of Equity
/
Total Liabilities )
Fifth Factor
 = 
0.99 * (
Revenue
/
Total Assets )

Paychex Z Score Driver Correlations

Understanding the fundamental principles of building solid financial models for Paychex is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since Paychex's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Paychex's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Paychex's interrelated accounts and indicators.
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition

Based on the company's disclosures, Paychex has a Z Score of 30.0. This is much higher than that of the IT Services sector and significantly higher than that of the Information Technology industry. The z score for all United States stocks is notably lower than that of the firm.

Paychex Z Score 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 Z Score 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 z score 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 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.
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

Our tools can tell you how much better you can do entering a position in Paychex without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

Did you try this?

Run Earnings Calls Now

   

Earnings Calls

Check upcoming earnings announcements updated hourly across public exchanges
All  Next Launch Module

Currently Active Assets on Macroaxis

Please check Paychex Piotroski F Score and Paychex Valuation analysis. You can also try Equity Valuation module to check real value of public entities based on technical and fundamental data.

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.
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
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.