PAYXPaychex demonstrates strong fundamental performance with consistent revenue and profit growth, coupled with robust cash flow and a healthy balance sheet. Thematic tailwinds in HR technology and outsourcing support its long-term outlook. Technical indicators suggest a moderate bullish trend, though some indicators signal potential overbought conditions in the short term.
Paychex is well-positioned within the human capital management (HCM) sector, benefiting from the trend of businesses outsourcing HR functions and the increasing complexity of payroll and benefits administration.
Paychex exhibits strong financial health with consistent revenue and profit growth, healthy margins, and robust free cash flow generation. The company maintains a manageable debt level and a solid balance sheet.
Paychex is trading within an established upward trend, but recent technical indicators suggest it may be approaching overbought levels, indicating a potential for consolidation or a slight pullback.
| Factor | Score |
|---|---|
| HR Outsourcing Trend | 85 |
| Regulatory Complexity | 88 |
| Digital Transformation in HR | 75 |
| Gig Economy & Workforce Management | 70 |
| Competitive Landscape | 72 |
| Factor | Score |
|---|---|
| Valuation | 60 |
| Profitability | 95 |
| Growth | 75 |
| Balance Sheet Health | 70 |
| Cash Flow | 90 |
| Dividend Yield | 80 |
| Factor | Score |
|---|---|
| Trend Analysis | 75 |
| Momentum | 50 |
| Short-term Momentum | 40 |
| Volume | 70 |
| Price Action | 65 |
Consistent EPS Beat
The company has exceeded Earnings Per Share (EPS) estimates in 10 out of the last 12 reported quarters, indicating a consistent ability to outperform market expectations.
Attractive P/E Ratio
The current Price-to-Earnings (P/E) ratio of 31.96 (TTM) is favorable compared to its historical average and the industry average, suggesting potential undervaluation relative to its earnings power.
High P/S Ratio
The Price-to-Sales (P/S) ratio of 9.5 indicates that the market is valuing the company at a high multiple of its revenue, potentially leaving little room for error.
Slight EPS Miss in Latest Quarter
While generally beating estimates, the company reported a slight miss on EPS in the most recent quarter (Q2 2025), potentially signaling future headwinds or increased competition.
June 2025
24
Next Earnings Date
H: $1.25
A: $1.21
L: $1.19
H: 1.54B
A: 1.54B
L: 1.54B
July 2025
21
Ex-Dividend Date
August 2025
29
Next Dividend Date
Paychex, Inc., together with its subsidiaries, provides human capital management solutions (HCM) for payroll, employee benefits, human resources (HR), 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. The company provides retirement solutions, such as plan implementation, ongoing compliance with government regulations, employee and employer reporting, participant and employer online access, electronic funds transfer, and other administrative services; HCM solutions from recruiting and hiring to retirement; and talent management and talent acquisition services. In addition, it offers payroll solutions, including calculation, preparation, and delivery of employee payroll checks; production of internal accounting records and management reports; preparation of federal, state, and local payroll tax returns; and collection and remittance of clients' payroll obligations. Further, the company provides workforce management solutions; benefits administration solutions; digital marketplace for earned wages, financial wellness solutions, and voluntary lifestyle benefits; HR support to non-payroll clients through HR Partner Plus solution; and 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. Additionally, it offers payroll, employer compliance, HR and employee benefits administration, risk management outsourcing, and both virtual and on-site availability of a professionally trained HR representative, and other solutions to businesses. 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.
147.47 USD
The 39 analysts offering 1 year price forecasts for PAYX have a max estimate of 165.00 and a min estimate of 122.00.