Paychex, Inc is a staffing & employment services business based in the US. Paychex shares (PAYX.US) are listed on the NASDAQ and all prices are listed in US Dollars. Paychex employs 15,600 staff and has a trailing 12-month revenue of around $4 billion.
|Latest market close||$N/A|
|52-week range||$46.6338 - $99.95|
|50-day moving average||$92.1091|
|200-day moving average||$82.8268|
|Wall St. target price||$96.14|
|Dividend yield||$2.48 (2.85%)|
|Earnings per share (TTM)||$2.93|
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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 current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 30x. In other words, Paychex shares trade at around 30x 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 "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 5.7831. 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 (earnings before interest, taxes, depreciation and amortisation) is a whopping $1.6 billion.
The EBITDA is a measure of a Paychex's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||$4 billion|
|Operating margin TTM||35.43%|
|Gross profit TTM||$2.8 billion|
|Return on assets TTM||10.16%|
|Return on equity TTM||38.81%|
|Market capitalisation||$31.3 billion|
TTM: trailing 12 months
There are currently 6.3 million Paychex shares held short by investors – that's known as Paychex's "short interest". This figure is 3.3% up from 6.1 million last month.
There are a few different ways that this level of interest in shorting Paychex shares can be evaluated.
Paychex's "short interest ratio" (SIR) is the quantity of Paychex shares currently shorted divided by the average quantity of Paychex shares traded daily (recently around 1.7 million). Paychex's SIR currently stands at 3.62. In other words for every 100,000 Paychex shares traded daily on the market, roughly 3620 shares are currently held short.
However Paychex's short interest can also be evaluated against the total number of Paychex shares, or, against the total number of tradable Paychex shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Paychex's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 Paychex shares in existence, roughly 20 shares are currently held short) or 0.0194% of the tradable shares (for every 100,000 tradable Paychex shares, roughly 19 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Paychex.
Find out more about how you can short Paychex stock.
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.
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.).
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.
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.
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.
|Total ESG score||21.65|
|Total ESG percentile||16.06|
|Environmental score percentile||8|
|Social score percentile||8|
|Governance score percentile||8|
Dividend payout ratio: 84.35% of net profits
Recently Paychex has paid out, on average, around 84.35% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.85% 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 2.85% return on their shares, in the form of dividend payments. In Paychex's case, that would currently equate to about $2.48 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 24 November 2020. The latest dividend was paid out to all shareholders who bought their shares by 30 October 2020 (the "ex-dividend date").
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.
Over the last 12 months, Paychex's shares have ranged in value from as little as $46.6338 up to $99.95. A popular way to gauge a stock's volatility is its "beta".
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 0.8997. This would suggest that Paychex's shares are less volatile than average (for this exchange).
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 and Europe. The company offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing. It 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, the company offers cloud-based HR administration software products for employee benefits management and administration, time and attendance, 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, it 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. The company markets and sells its services primarily through its direct sales force. Paychex, Inc. was founded in 1979 and is headquartered in Rochester, New York.
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