Paychex Inc.

Paychex Inc.

PAYX

Market Cap$51.85B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Paychex Inc.Paychex Inc.31.32.79%40%9.7-0.1

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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$154.80

Target Price by Analysts

6.1% upsidePaychex Target Price DetailsTarget Price
$152.68

Current Fair Value

4.6% upside

Undervalued by 4.6% based on the discounted cash flow analysis.

Share Statistics

Market cap$51.85 Billion
Enterprise Value$49.92 Billion
Dividend Yield$4.02 (2.79283034597749%)
Earnings per Share$4.6
Beta0.91
Outstanding Shares360,300,000

Return

Return on Equity-
Return on Assets-
Return on Invested Capital-

Valuation & Multiples

P/E Ratio31.29
PEG-143.75
Price to Sales9.73
Price to Book Ratio13.27
Enterprise Value to Revenue8.96
Enterprise Value to EBIT22.09
Enterprise Value to Net Income30
Total Debt to Enterprise-0.01
Debt to Equity-0.07

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 ...