Added to YB: 2025-08-01
Pitch date: 2025-07-31
PAYX [neutral]
Paychex, Inc.
-18.42%
current return
Author Info
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Company Info
Paychex, Inc., together with its subsidiaries, provides human capital management solutions (HCM) for payroll, employee benefits, human resources (HR), and insurance services for small to medium-sized businesses in the United States, Europe, and India.
Market Cap
$41.5B
Pitch Price
$141.75
Price Target
136.00 (+18%)
Dividend
3.74%
EV/EBITDA
16.88
P/E
25.89
EV/Sales
7.75
Sector
Professional Services
Category
growth
Paychex, Inc. - $PAYX
PAYX (overview - slightly overvalued): HCM leader for SMBs with comprehensive payroll/HR services. Post-Paycor acquisition, 16.5-18.5% FY26 revenue growth expected (12-13% from acquisition). Historically 7.3% revenue CAGR, 41.8% op margin, 80-85% client retention. Debt increased to $4.5B. Trading at 24x P/E, slightly overvalued vs DCF fair value of $136.
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