Paychex Z Score
PAYX  Stock  USD 125.90 1.87 1.51% 
Paychex  Z Score 
Paychex Z Score Analysis
Paychex's ZScore is a simple linear, multifactor 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 Payable  79.4 M  89 M  105.7 M  114.04 M 
Receivables  790.3 M  1.05 B  1.32 B  1.42 B 
Z Score  =  Sum Of   5 Factors 
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.
 
 
 
 

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.
Click cells to compare fundamentals
To calculate ZScore 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. ZScore 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 ZScores 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 socalled '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.
2017  2018  2019  2020  2021  2022 (projected)  
Net Income Per Employee  65.29 K  66.31 K  69.31 K  73.17 K  87.05 K  70.06 K  
Revenue Per Employee  236.43 K  241.83 K  255.03 K  270.45 K  288.23 K  243.95 K  
Average Assets  6.38 B  6.5 B  7.52 B  8.27 B  9.51 B  8.71 B  
Earnings Before Interest Taxes and Depreciation Amortization EBITDA  1.41 B  1.5 B  1.59 B  1.59 B  1.99 B  1.58 B  
Earnings Before Interest Taxes and Depreciation Amortization USD  1.27 B  1.39 B  1.45 B  1.55 B  1.78 B  1.61 B  
Earnings before Tax  1.15 B  1.26 B  1.3 B  1.37 B  1.57 B  1.43 B  
Average Equity  1.86 B  1.91 B  2.08 B  2.51 B  2.88 B  2.56 B  
Enterprise Value  19.27 B  21.14 B  23.3 B  30.92 B  35.56 B  28.71 B  
Free Cash Flow  920.5 M  866.1 M  1.12 B  1.15 B  1.32 B  1.16 B  
Invested Capital  1.22 B  1.21 B  1.31 B  1.73 B  1.99 B  1.73 B  
Invested Capital Average  1.04 B  1.25 B  1.2 B  1.51 B  1.74 B  1.55 B  
Market Capitalization  19.53 B  21.28 B  23.56 B  30.83 B  35.46 B  28.77 B  
Tangible Asset Value  5.71 B  6.12 B  6.96 B  6.49 B  7.47 B  7.29 B  
Working Capital  497.7 M  546.9 M  596.9 M  832.7 M  957.61 M  812.82 M 
Paychex Fundamentals
Return On Equity  0.47 %  
Return On Asset  0.13 %  
Profit Margin  0.30 %  
Operating Margin  0.40 %  
Current Valuation  44.05 B  
Shares Outstanding  360.4 M  
Shares Owned by Insiders  10.75 %  
Shares Owned by Institutions  73.09 %  
Number of Shares Shorted  9.8 M  
Price to Earning  31.04 X  
Price to Book  14.15 X  
Price to Sales  9.44 X  
Revenue  4.61 B  
Gross Profit  3.26 B  
EBITDA  2.05 B  
Net Income  1.39 B  
Cash and Equivalents  1.23 B  
Cash per Share  3.41 X  
Total Debt  797.7 M  
Debt to Equity  0.28 %  
Current Ratio  1.29 X  
Book Value Per Share  8.71 X  
Cash Flow from Operations  1.51 B  
Short Ratio  6.26 X  
Earnings Per Share  3.97 X  
Price to Earnings To Growth  3.42 X  
Target Price  125.63  
Number of Employees  16 K  
Beta  0.98  
Market Capitalization  44.7 B  
Total Asset  9.64 B  
Retained Earnings  1.44 B  
Working Capital  497.7 M  
Current Asset  4.86 B  
Current Liabilities  4.37 B  
Z Score  30.0  
Annual Yield  0.0262 %  
Five Year Return  2.77 %  
Net Asset  9.64 B  
Last Dividend Paid  2.9 
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 mediumsized 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.
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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.