Paychex reported first-quarter sales of $1.63 billion, up 6% year over year, and an adjusted operating margin of 42%, both in line with guidance. Management raised its full-year outlook for the PEO and insurance solutions segment and for interest income, with the rest of the guidance left unchanged.
Paychex’s position as a preferred payroll provider is buoyed by its robust referral networks of accountants and brokers, which should remain a key driver of new bookings.
Given its predominantly SMB customer base, Paychex faces significant downside risk from declines in labor force participation rates and new business formations.
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Metric
|
PAYX
|
PAYC
|
PCTY
|
|---|---|---|---|
Price/Earnings (Normalized) | 17.91 | 22.04 | 17.60 |
Price/Book Value | 9.69 | 17.63 | 6.39 |
Price/Sales | 5.48 | 5.55 | 4.53 |
Price/Cash Flow | 13.55 | 13.48 | 13.27 |
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Metric
|
PAYX
|
PAYC
|
PCTY
|
|---|---|---|---|
Quick Ratio | 0.52 | 0.08 | 0.09 |
Current Ratio | 1.28 | 1.07 | 1.09 |
Interest Coverage | 9.72 | 42.96 | — |
|
Metric
|
PAYX
|
PAYC
|
PCTY
|
|---|---|---|---|
Return on Assets (Normalized) | 12.26% | 10.30% | 8.78% |
Return on Equity (Normalized) | 52.40% | 40.24% | 38.98% |
Return on Invested Capital (Normalized) | 25.04% | 31.58% | 34.52% |
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1-Day Chart
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Morningstar Rating for Stocks
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United States