Paychex Inc.
PAYX
Market Cap$53.71B
Close$
Earnings Call Q4 2025
June 25, 2025 - AI Summary
Fourth Quarter and Fiscal Year Performance: Paychex reported a 10% revenue growth for Q4 2025, totaling $1.4 billion, despite ERTC headwinds. For the full fiscal year 2025, total revenue grew 6% to $5.6 billion, with Management Solutions growing 5% to $4.1 billion. Adjusted diluted EPS increased by 6% to $4.98, affirming the company's strong profitability.
Integration of Paycor Acquisition: The successful integration of Paycor has been emphasized, with expectations of achieving approximately $90 million in cost synergies by fiscal year 2026. The early progress suggests potential revenue synergies from cross-selling to Paycor's client base, with first successful sales already recorded.
Sales Transformation Impact: In Q4, Paychex completed significant changes to its sales organization and territories but acknowledged some disruption. Despite this, client retention rates improved, which is a positive indicator of customer satisfaction. The company will leverage improved sales dynamics with newly trained representatives going into fiscal year 2026.
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$129.65
8.1% downside
Current Fair Value
8.1% downsideOvervalued by 8.1% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $53.71 Billion |
|---|---|
| Enterprise Value | $52.28 Billion |
| Dividend Yield | $4.02 (2.69581545064378%) |
| Earnings per Share | $4.69 |
| Beta | 0.91 |
| Outstanding Shares | 360,100,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 30.86 |
|---|---|
| PEG | 743.35 |
| Price to Sales | 9.4 |
| Price to Book Ratio | 12.82 |
| Enterprise Value to Revenue | 9.61 |
| Enterprise Value to EBIT | 22.63 |
| Enterprise Value to Net Income | 30 |
| Total Debt to Enterprise | 0 |
| Debt to Equity | 0.03 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Paychex Inc.
14,300 employees
CEO: Martin Mucci Paychex, Inc. is a leading provider of integrated human capital management solutions for human resources, payroll, benefits, and insurance services. By combining its innovative software-as-a-service technology and mobility platform with ...