What Paychex (PAYX) Investors Need to Know

Large-cap consumer discretionary company Paychex has moved 1.6% this afternoon, reaching $114.28 per share. In contrast, the average analyst target price for the stock is $119.92.

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. The company is based in the United States. Paychex currently returns an annual dividend yield of 3.0%.

Make Sure to Consider the Following Before Buying Paychex:

  • Paychex has moved -0.0% over the last year.

  • PAYX has a forward P/E ratio of 22.8 based on its EPS guidance of 5.02.

  • Over the last 6 years, earnings per share (EPS) have been growing at a compounded average rate of 7.7%.

  • The company has a price to earnings growth (PEG) ratio of 2.94.

  • Its Price to Book (P/B) ratio is 11.51

Paychex Has Generally Positive Cash Flows

Date Reported Cash Flow from Operations ($ k) Capital expenditures ($ k) Free Cash Flow ($ k) YoY Growth (%)
2023 1,699,400 143,000 1,556,400 13.47
2022 1,505,500 133,800 1,371,700 20.12
2021 1,260,300 118,400 1,141,900 -13.09
2020 1,440,900 127,000 1,313,900 14.48
2019 1,271,500 123,800 1,147,700 52.24
2018 1,276,400 522,500 753,900

Paychex's free cash flows are strong in the aggregate, since they average out to $1.21 Billion over the last 6 years. But they are highly variable since their coefficient of variability is 160.4%. The compounded average growth rate for this period stands at 12.8%.

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.