Paychex Inc.
PAYX
Market Cap$52.99B
Close$
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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$147.63
1.3% upside
Current Fair Value
1.3% upsideUndervalued by 1.3% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $52.99 Billion |
|---|---|
| Enterprise Value | $51.07 Billion |
| Dividend Yield | $4.02 (2.73227757765242%) |
| Earnings per Share | $4.6 |
| Beta | 0.91 |
| Outstanding Shares | 360,300,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | 31.99 |
|---|---|
| PEG | -146.94 |
| Price to Sales | 9.71 |
| Price to Book Ratio | 13.24 |
| Enterprise Value to Revenue | 9.17 |
| Enterprise Value to EBIT | 22.6 |
| Enterprise Value to Net Income | 30 |
| 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 ...