Company Overview

Paychex, Inc. provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing. The company also provides HR solutions, including payroll, employer compliance, HR and employee benefits administration, risk management outsourcing, and the on-site availability of a professionally trained HR representative; and retirement services administration, including plan implementation, ongoing compliance with government regulations, employee and employer reporting, participant and employer online access, electronic funds transfer, and other administrative services. In addition, it offers cloud-based HR administration software products for employee benefits management and administration, time and attendance, digital communication solutions, recruiting, and onboarding solutions; plan administration outsourcing and state unemployment insurance services; various business services to small to medium-sized businesses comprising payroll funding and outsourcing services, which include payroll processing, invoicing, and tax preparation; and payment processing services, financial fitness programs, and a small-business loan resource center. Further, the company provides insurance services for property and casualty coverage, such as workers' compensation, business-owner policies, cyber security protection, and commercial auto, as well as health and benefits coverage, including health, dental, vision, and life. It markets and sells its services primarily through its direct sales force. The company was founded in 1971 and is headquartered in Rochester, New York.

  • Name

    Paychex, Inc.

  • CEO

    Mr. John B. Gibson Jr.

  • Website

    www.paychex.com

  • Sector

    Professional Services

  • Year Founded

    1971

Profile

  • Market Cap

    $48.6B

  • EV

    $47.98B

  • Shares Out

    359.74M

  • Revenue

    $5,278.3M

  • Employees

    16,500

Margins

  • Gross

    71.97%

  • EBITDA

    44.53%

  • Operating

    41.19%

  • Pre-Tax

    42.02%

  • Net

    32.03%

  • FCF

    32.9%

Returns (5Yr Avg)

  • ROA

    13.83%

  • ROTA

    47.75%

  • ROE

    43.48%

  • ROCE

    40.61%

  • ROIC

    17.47%

Valuation (TTM)

  • P/E

  • P/B

  • EV/Sales

  • EV/EBITDA

  • P/FCF

  • EV/Gross Profit

Valuation (NTM)

  • Price Target

    $121.55

  • P/E

  • PEG

  • EV/Sales

  • EV/EBITDA

  • P/FCF

Financial Health

  • Cash

    $1,502.8M

  • Net Debt

    -$617.3M

  • Debt/Equity

    0.23

  • EBIT/Interest

    58.29

Growth (CAGR)

  • Rev 3Yr

    9.17%

  • Rev 5Yr

    6.95%

  • Rev 10Yr

    7.68%

  • Dil EPS 3Yr

    15.51%

  • Dil EPS 5Yr

    10.3%

  • Dil EPS 10Yr

    10.57%

  • Rev Fwd 2Yr

    5.05%

  • EBITDA Fwd 2Yr

    5.98%

  • EPS Fwd 2Yr

    5.85%

  • EPS LT Growth Est

    7.36%

Dividends

  • Yield

  • Payout

    77.8%

  • DPS

    $3.65

  • DPS Growth 3Yr

    13.14%

  • DPS Growth 5Yr

    9.68%

  • DPS Growth 10Yr

    10.06%

  • DPS Growth Fwd 2Yr

    6.13%

NasdaqGS:PAYX