ScoreWhy is Paychex, Inc. ?
1
High Management Efficiency with a high ROE of 42.91%
2
The company is Net-Debt Free
3
Positive results in May 26
- INTEREST COVERAGE RATIO(Q) Highest at 1,500
- OPERATING CASH FLOW(Y) Highest at USD 2,556.7 MM
- DIVIDEND PER SHARE(HY) Highest at USD 3.11
4
With ROE of 46.84%, it has a fair valuation with a 8.18 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 -18.73%, its profits have risen by 7.3% ; the PEG ratio of the company is 2.3
5
High Institutional Holdings at 96.35%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 12.28% over the previous quarter.
Real-Time Research ReportHow much should you buy?
- 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?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Paychex, Inc.
-17.08%
-0.09
28.58%
S&P 500
14.84%
1.25
12.97%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.94%
EBIT Growth (5y)
13.47%
EBIT to Interest (avg)
45.48
Debt to EBITDA (avg)
0.25
Net Debt to Equity (avg)
0.79
Sales to Capital Employed (avg)
0.95
Tax Ratio
23.83%
Dividend Payout Ratio
87.81%
Pledged Shares
0
Institutional Holding
84.07%
ROCE (avg)
60.47%
ROE (avg)
42.91%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
8.18
EV to EBIT
13.55
EV to EBITDA
11.72
EV to Capital Employed
5.04
EV to Sales
5.68
PEG Ratio
2.30
Dividend Yield
4.74%
ROCE (Latest)
37.20%
ROE (Latest)
46.84%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 1,500
OPERATING CASH FLOW(Y)
Highest at USD 2,556.7 MM
DIVIDEND PER SHARE(HY)
Highest at USD 3.11
OPERATING PROFIT(Q)
Highest at USD 970.5 MM
OPERATING PROFIT MARGIN(Q)
Highest at 60.45 %
PRE-TAX PROFIT(Q)
Highest at USD 806.8 MM
NET PROFIT(Q)
Highest at USD 612.31 MM
-8What is not working for the Company
INTEREST(HY)
At USD 132.8 MM has Grown at 53.88%
DEBT-EQUITY RATIO
(HY)
Highest at 92.45 %
Here's what is working for Paychex, Inc.
Interest Coverage Ratio
Highest at 1,500 and Grown
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit
Highest at USD 970.5 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 60.45 % and Grown
In each period in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 806.8 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 612.31 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Dividend per share
Highest at USD 3.11 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 2,556.7 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Pre-Tax Profit
At USD 806.8 MM has Grown at 50.83%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Depreciation
Highest at USD 113.2 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Paychex, Inc.
Interest
At USD 132.8 MM has Grown at 53.88%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at 92.45 % and Grown
In each half year 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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