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Earnings transcript
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PAYX
Paychex, Inc.
$100.28
1.36
(1.37%)
| Exchange: | NASDAQ |
| Market Cap: | 35.929B |
| Shares Outstanding: | 326.511M |
Delayed data
About The Company
| Sector: | Industrials | |||||
| Industry: | Staffing & Employment Services | |||||
| CEO: | John Gibson Jr. | |||||
| Full Time Employees: | 16500 | |||||
| Address: |
| |||||
| Website: | https://www.paychex.com |
Founded in 1971 and headquartered in Rochester, New York, Paychex, Inc. delivers comprehensive human capital management (HCM) solutions. The company primarily serves small to medium-sized enterprises (SMEs) across the United States, Europe, and India, addressing their needs in human resources, payroll administration, employee benefits, and insurance. Its diverse service portfolio includes: Payroll Management: Encompassing core payroll processing, payroll tax administration, employee payment facilitation, and ensuring compliance with regulations like new-hire reporting and garnishment processing. Human Resources Solutions: Providing support for employer compliance, HR and employee benefits administration, risk management outsourcing, and even the availability of professionally trained on-site HR representatives. Retirement Services: Offering full administration for retirement plans, which covers implementation, ongoing adherence to government regulations, reporting for both participants and employers, online access capabilities, electronic funds transfers, and other administrative tasks. Cloud-based HR Software: A suite of software products designed for efficient HR administration, including tools for benefits management, time and attendance tracking, digital communication, recruitment, and onboarding processes. Additional Business Services: This category features plan administration outsourcing, state unemployment insurance services, and various support functions for SMBs such as payroll funding and outsourcing (including payroll processing, invoicing, and tax preparation), payment processing solutions, financial wellness programs, and a resource center for small business loans. Insurance Offerings: Providing both property and casualty coverage, which includes workers’ compensation, business-owner policies, cybersecurity protection, and commercial auto insurance, alongside health and benefits coverage like medical, dental, vision, and life insurance. Paychex primarily distributes its services through its dedicated direct sales team.
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Revenue Segmentation
EPS
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Earnings Call
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Key takeaways
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Login — it's freeIncome Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 5,007,100 | 5,278,300 | 5,571,700 |
| Gross Profit | 3,554,100 | 3,799,000 | 4,031,300 |
| EBITDA | 2,209,700 | 2,431,800 | 2,490,800 |
| Operating Income | 2,033,100 | 2,174,100 | 2,207,700 |
| Net Income | 1,557,300 | 1,690,400 | 1,657,300 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Total Assets | 10,546,400 | 10,383,100 | 16,564,100 |
| Total Liabilities | 7,053,200 | 6,582,100 | 12,436,100 |
| Total Stockholders Equity | 3,493,200 | 3,801,000 | 4,128,000 |
| Total Debt | 865,700 | 866,300 | 5,022,300 |
| Cash and Cash Equivalents | 1,222,000 | 1,468,900 | 1,628,600 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating Cash Flow | 1,699,400 | 1,897,700 | 1,951,100 |
| Capital Expenditure | -143,000 | -161,400 | -191,800 |
| Free Cash Flow | 1,556,400 | 1,736,300 | 1,759,300 |
| Net Income | 1,557,300 | 1,690,400 | 1,657,300 |
| Net Change in Cash | 1,206,500 | -237,900 | 837,300 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2029 | Full Access | Full Access | Full Access | Full Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 7,788,927.342 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (High) | 7,975,214.711 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (Avg) | 7,833,000 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Low) | 3,843,208.608 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (High) | 3,935,126.428 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Avg) | 3,864,954.917 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Low) | 2,439,999.466 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (High) | 2,515,994.126 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Avg) | 2,477,996.796 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Low) | 2,449,482.637 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (High) | 2,508,066.786 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Avg) | 2,463,342.724 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Avg) | 6.790 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (High) | 6.950 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Low) | 6.740 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated Revenue) | 1 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated EPS) | 1 | Full Access | Full Access | Full Access | Full Access |
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Current Key Metrics
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Login — it's freeForward P/E Ratios
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Login — it's freeSWOT Analysis
Strengths (preview)
- Robust Financial Performance: Paychex, Inc. reported strong financial results in its Q2 Fiscal 2026 earnings call, with key metrics such as revenue and net income showing consistent growth as per income statement data. High gross profit and net profit margins (from Key Metrics TTM) indicate operational efficiency and profitability compared to industry benchmarks.
- Strong Cash Flow Generation: The company demonstrates solid free cash flow yield (freeCashFlowYieldTTM) and positive net cash provided by operating activities (Cash Flow Statements), reflecting financial stability and the ability to fund dividends and reinvest in growth initiatives.
- Market Leadership and Product Offerings: As highlighted in the earnings call transcript, Paychex maintains a competitive edge in the payroll and HR solutions industry (Company Profile: industryName), supported by comprehensive product offerings that cater to diverse client needs, driving sustained revenue across product segments (Revenue Product Segments).
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At what price to buy it? -
Intrinsic Value Calculator
Based on current fundamentals and analyst forecasts, MARKETSnap estimates PAYX intrinsic value between $70.56 – $114.53 per share. This depends on revenue growth, margins, and discount rate.
This is an automatic estimate. The most reliable way to know fair value for your own assumptions is to run the calculator below.
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Common questions about PAYX valuation
Is Paychex, Inc. (PAYX) overvalued or undervalued right now?
MARKETSnap estimates intrinsic value for Paychex, Inc. (PAYX) using its proprietary valuation methodology, which incorporates discounted cash flow (DCF) analysis together with long-term earnings and fundamentals assumptions. By comparing intrinsic value to the current market price, long-term investors can see whether the stock screens as potentially overvalued, fairly valued, or undervalued today.
Is PAYX a buy, hold, or sell for long-term investors?
MARKETSnap does not give one-word “buy” or “sell” calls. Instead, it shows whether PAYX trades at a premium or discount to its estimated intrinsic value, how sensitive that value is to growth and margin assumptions, and how the stock fits into a diversified, long-term portfolio so investors can make their own buy, hold, or sell decision.
What is PAYX’s P/E ratio?
You can see PAYX’s trailing P/E (TTM) and forward P/E estimates in the Current Key Metrics and Forward P/E Ratios sections above. The P/E ratio compares the current share price to earnings per share and helps investors gauge valuation relative to earnings.
How is intrinsic value calculated for PAYX?
MARKETSnap uses its own valuation framework—not a generic spreadsheet DCF alone. Future cash flows and earnings are projected, discounted, and combined with MARKETSnap’s methodology so intrinsic value reflects fundamentals and long-term assumptions. You can run your own inputs and see the result using the Intrinsic Value Calculator above.
Is PAYX a good long-term investment?
Whether PAYX fits a long-term portfolio depends on your assumptions about growth, margins, and risk. MARKETSnap provides the metrics, intrinsic value calculator, and SWOT context so you can form your own view rather than rely on a single buy/sell rating.
PAYX
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Daily snapshot
1.37
Trading Metrics:
| Open: | 97.96 | Previous Close: | 98.92 | |
| Day Low: | 97.26 | Day High: | 100.54 | |
| Year Low: | 85.45 | Year High: | 157.51 | |
| Price Avg 50: | 93.21 | Price Avg 200: | 108.28 | |
| Volume: | 3.364M | Average Volume: | 3.692M |
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Login — it's freePAYX full analysis
Hey everyone, welcome back to the channel! Today, we’re diving deep into a comprehensive analysis of Paychex, Inc., ticker symbol PAYX, a major player in the human capital management space. If you’re looking to understand whether this stock deserves a spot in your portfolio, stick around because we’re covering everything from financials to valuation, recent performance, and more. Let’s get started! So, first things first, let’s set the stage. Paychex is a well-established company in the payroll and HR solutions…
