ScoreWhy is Paychex, Inc. ?
1
High Management Efficiency with a high ROE of 42.91%
2
Company has a low Debt to Equity ratio (avg) at times
3
Flat results in Nov 25
- INTEREST(HY) At USD 136.7 MM has Grown at 615.71%
- ROCE(HY) Lowest at 40.88%
- DEBT-EQUITY RATIO (HY) Highest at 89.25 %
4
With ROE of 45.41%, it has a fair valuation with a 11.47 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -32.72%, its profits have risen by 6.1% ; the PEG ratio of the company is 4.1
5
High Institutional Holdings at 79.46%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Below par performance in long term as well as near term
- Along with generating -32.72% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Paychex, Inc. should be less than 10%
- Overall Portfolio exposure to Commercial Services & Supplies should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commercial Services & Supplies)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Paychex, Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Paychex, Inc.
-35.95%
-0.63
27.39%
S&P 500
17.45%
0.90
19.38%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.71%
EBIT Growth (5y)
12.63%
EBIT to Interest (avg)
45.48
Debt to EBITDA (avg)
0.25
Net Debt to Equity (avg)
0.79
Sales to Capital Employed (avg)
0.99
Tax Ratio
23.83%
Dividend Payout Ratio
87.81%
Pledged Shares
0
Institutional Holding
79.46%
ROCE (avg)
60.47%
ROE (avg)
42.91%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
11.47
EV to EBIT
19.92
EV to EBITDA
17.88
EV to Capital Employed
6.76
EV to Sales
8.42
PEG Ratio
4.10
Dividend Yield
156.82%
ROCE (Latest)
33.94%
ROE (Latest)
45.41%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 2,175.3 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 98.44%
DIVIDEND PER SHARE(HY)
Highest at USD 3.09
RAW MATERIAL COST(Y)
Fallen by -3.32% (YoY
CASH AND EQV(HY)
Highest at USD 3,295.2 MM
NET SALES(Q)
Highest at USD 1,557.6 MM
OPERATING PROFIT(Q)
Highest at USD 758.1 MM
-11What is not working for the Company
INTEREST(HY)
At USD 136.7 MM has Grown at 615.71%
ROCE(HY)
Lowest at 40.88%
DEBT-EQUITY RATIO
(HY)
Highest at 89.25 %
Here's what is working for Paychex, Inc.
Dividend per share
Highest at USD 3.09 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Cash Flow
Highest at USD 2,175.3 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Dividend Payout Ratio
Highest at 98.44% and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Net Sales
Highest at USD 1,557.6 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 758.1 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Cash and Eqv
Highest at USD 3,295.2 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -3.32% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Paychex, Inc.
Interest
At USD 136.7 MM has Grown at 615.71%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at 89.25 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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