Paychex Inc.
PAYX
Market Cap$53.71B
Close$
Earnings Call Q3 2025
March 26, 2025 - AI Summary
Financial Performance: Paychex reported a total revenue growth of 5% for Q3 FY2025, amounting to $1.5 billion. Excluding the impact from the discontinued ERTC program, revenue growth was 6%. Diluted earnings per share increased by 4%, with adjusted diluted earnings per share growing by 8%.
Acquisition of Paycor: Paychex has entered into an agreement to acquire Paycor, a move expected to enhance its competitive positioning. The acquisition is projected to be accretive to adjusted earnings per share in the next fiscal year. Expected cost synergies from the acquisition have increased to over $80 million.
Client Retention and Growth: Client retention has improved, particularly in HR outsourcing solutions. The company has experienced stable client employment levels year-on-year despite slight softness in hiring due to external factors like weather-related disruptions.
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$129.65
14.8% downside
Current Fair Value
14.8% downsideOvervalued by 14.8% 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 | 10.15 |
| Price to Book Ratio | 13.84 |
| 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 ...