Consider This Before Taking a Position in Paychex (PAYX)

Shares of Large-cap consumer discretionary company Paychex moved -2.5 this evening, and are now trading at $115.97 per share. On the other hand, the average analyst target price for the stock is $120.44.

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.

Paychex Investors Should Consider This:

  • Paychex has moved -2.0% over the last year.

  • The company has a price to earnings growth (PEG) ratio of 2.86. A number between 0 and 1 could mean that the market is undervaluing Paychex's estimated growth potential

  • Its Price to Book (P/B) ratio is 11.97

  • Paychex currently returns an annual dividend yield of 2.7%.

Understanding Paychex's Operating Margins

Date Reported Total Revenue ($ k) Operating Expenses ($ k) Operating Margins (%) YoY Growth (%)
2022-07-15 4,611,700 -1,415,400 40 11.11
2021-07-16 4,056,800 -1,324,900 36 0.0
2020-07-17 4,040,500 -1,299,200 36 0.0
2019-07-24 3,772,500 -1,223,400 36 -5.26
2018-07-20 3,380,900 -1,075,600 38 -2.56
2017-07-21 3,151,300 -992,100 39

Paychex's operating margins have averaged 37.5% over the last 6 years, which is significantly higher than the Commercial Services industry average of 9.03%. The firm's margins exhibit a relatively stable growth trend of 0.4%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.