Paychex, Inc., together with its subsidiaries, provides integrated human capital management solutions (HCM) for payroll, benefits, human resources (HR), and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing. The company also provides HR solutions, including integrated HCM technology solutions and HR advisory services through both virtual and on-site availability of a professionally trained HR representative, as well as HR support to non-payroll clients through its HR Partner Plus solution; and retirement services administration, such as plan implementation, ongoing compliance with government regulations, employee and employer reporting, participant and employer online access, electronic funds transfer, and other administrative services. In addition, it offers cloud-based HR administration software products for employee benefits management and administration, time and attendance, digital communication solutions, recruiting, and onboarding solutions; plan administration outsourcing and state unemployment insurance services; various business services to small to medium-sized businesses comprising payroll funding and outsourcing services, which include payroll processing, invoicing, and tax preparation; and payment processing services, financial fitness programs, and a small-business loan resource center. Further, the company provides insurance services for property and casualty coverage, such as workers’ compensation, business-owner policies, cyber security protection, and commercial auto, as well as health and benefits coverage, including health, dental, vision, and life. It markets and sells its services primarily through its direct sales force. The company was founded in 1971 and is headquartered in Rochester, New York.
Data-Driven Growth | Explore Paychex's strategic focus on AI and machine learning, poised to revolutionize its services, enhance operational efficiency, and unlock new revenue streams |
Market Resilience | Delve into Paychex's financial performance, showcasing revenue resilience and projected margin improvements despite macroeconomic headwinds |
Untapped Potential | Learn how Paychex is capitalizing on the underserved down market and limited PEO penetration, presenting significant growth opportunities |
Analyst Outlook | RBC Capital Markets sets price targets ranging from $130 to $148, reflecting cautious optimism about Paychex's future prospects amid market challenges |
Metrics to compare | PAYX | Sector Sector - Average of metrics from a broad group of related Industrials sector companies | Relationship RelationshipPAYXPeersSector | |
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P/E Ratio | 29.9x | 18.0x | 11.9x | |
PEG Ratio | 4.71 | −0.77 | 0.03 | |
Price/Book | 13.2x | 1.8x | 1.4x | |
Price / LTM Sales | 9.6x | 2.9x | 1.2x | |
Upside (Analyst Target) | −3.0% | 34.5% | 19.8% | |
Fair Value Upside | Unlock | 29.7% | 5.8% | Unlock |