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How to buy Paychex (PAYX) stocks

Learn how to easily invest in Paychex stocks.

Paychex Inc
NASDAQ: PAYX - USD
$114.78
- $0.61 ( - 0.53%)
STAFFING & EMPLOYMENT SERVICES

Paychex is a staffing & employment services business based in the US. Paychex stocks (PAYX.US) are listed on the NASDAQ and all prices are listed in US Dollars. Its last market close was $110.22 – a decrease of 1.7% over the previous week. Paychex employs 16,000 staff and has a trailing 12-month revenue of around $4.7 billion.

How to buy stocks in Paychex

  1. Compare stock trading platforms. Use our comparison table to help you find a platform that fits you.
  2. Open your brokerage account. Complete an application with your details.
  3. Confirm your payment details. Fund your account.
  4. Research the stock. Find the stock by name or ticker symbol – PAYX – and research it before deciding if it's a good investment for you.
  5. Purchase now or later. Buy your desired number of stocks with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
  6. Check in on your investment. Optimize your portfolio by tracking your stock.

Paychex stock price (NASDAQ:PAYX)

Use our graph to track the performance of PAYX stocks over time.

Paychex shares at a glance

Information last updated 2022-10-04.
Latest market close$115.39
52-week range$108.49 - $140.14
50-day moving average $125.86
200-day moving average $124.46
Wall St. target price$127.72
PE ratio 28.932
Dividend yield $2.9 (2.82%)
Earnings per share (TTM) $3.97

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Is it a good time to buy Paychex stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Paychex price performance over time

Historical closes compared with the close of $115.39 from 2022-10-04

1 week (2022-09-28) -1.70%
1 month (2022-09-01) -7.13%
3 months (2022-07-01) N/A
6 months (2022-04-05) -17.13%
1 year (2021-10-05) -1.23%
2 years (2020-10-05) 41.67%
3 years (2019-10-04) 36.80%
5 years (2017-10-05) 82.43%

Is Paychex under- or over-valued?

Valuing Paychex stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Paychex's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Paychex's P/E ratio

Paychex's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 29x. In other words, Paychex shares trade at around 29x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

Paychex's PEG ratio

Paychex's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 3.0114. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Paychex's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Paychex's EBITDA

Paychex's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $2.1 billion.

The EBITDA is a measure of a Paychex's overall financial performance and is widely used to measure a its profitability.

Paychex financials

Revenue TTM $4.7 billion
Operating margin TTM 39.97%
Gross profit TTM $3.3 billion
Return on assets TTM 12.79%
Return on equity TTM 46.54%
Profit margin 30.38%
Book value $8.71
Market capitalisation $41.4 billion

TTM: trailing 12 months

Paychex's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Paychex.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Paychex's total ESG risk score

Total ESG risk: 21.65

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Paychex's overall score of 21.65 (as at 01/01/2019) is excellent – landing it in it in the 16th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Paychex is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Paychex's environmental score

Environmental score: 7.61/100

Paychex's environmental score of 7.61 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Paychex is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Paychex's social score

Social score: 16.2/100

Paychex's social score of 16.2 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Paychex is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Paychex's governance score

Governance score: 13.33/100

Paychex's governance score puts it squarely in the 8th percentile of companies rated in the same sector. That could suggest that Paychex is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Paychex share dividends

74%

Dividend payout ratio: 74.36% of net profits

Recently Paychex has paid out, on average, around 74.36% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.82% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Paychex shareholders could enjoy a 2.82% return on their shares, in the form of dividend payments. In Paychex's case, that would currently equate to about $2.9 per share.

Paychex's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

Paychex's most recent dividend payout was on 25 August 2022. The latest dividend was paid out to all shareholders who bought their shares by 10 August 2022 (the "ex-dividend date").

Have Paychex's shares ever split?

Paychex's shares were split on a 3:2 basis on 23 May 2000. So if you had owned 2 shares the day before before the split, the next day you'd have owned 3 shares. This wouldn't directly have changed the overall worth of your Paychex shares – just the quantity. However, indirectly, the new 33.3% lower share price could have impacted the market appetite for Paychex shares which in turn could have impacted Paychex's share price.

Paychex share price volatility

Over the last 12 months, Paychex's shares have ranged in value from as little as $108.4887 up to $140.1358. A popular way to gauge a stock's volatility is its "beta".

PAYX.US volatility(beta: 0.99)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Paychex's is 0.9944. This would suggest that Paychex's shares are less volatile than average (for this exchange).

Paychex 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.

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Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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