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 May 25
- ROCE(HY) Lowest at 41.8%
- INTEREST COVERAGE RATIO(Q) Lowest at 1,039.87
- DEBT-EQUITY RATIO (HY) Highest at 80.76 %
4
With ROE of 42.58%, it has a fair valuation with a 13.98 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 -22.82%, its profits have risen by 5.5% ; the PEG ratio of the company is 6
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -22.82% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
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.
-22.65%
-0.33
24.31%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.64%
EBIT Growth (5y)
10.17%
EBIT to Interest (avg)
45.48
Debt to EBITDA (avg)
0.25
Net Debt to Equity (avg)
0.79
Sales to Capital Employed (avg)
1.09
Tax Ratio
23.83%
Dividend Payout Ratio
87.81%
Pledged Shares
0
Institutional Holding
80.70%
ROCE (avg)
60.47%
ROE (avg)
42.91%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
33
Industry P/E
Price to Book Value
13.98
EV to EBIT
24.93
EV to EBITDA
23.20
EV to Capital Employed
17.28
EV to Sales
10.43
PEG Ratio
6.02
Dividend Yield
184.86%
ROCE (Latest)
69.30%
ROE (Latest)
42.58%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 3.1
DIVIDEND PAYOUT RATIO(Y)
Highest at 131.66%
RAW MATERIAL COST(Y)
Fallen by -1.96% (YoY
CASH AND EQV(HY)
Highest at USD 3,361.1 MM
-17What is not working for the Company
ROCE(HY)
Lowest at 41.8%
INTEREST COVERAGE RATIO(Q)
Lowest at 1,039.87
DEBT-EQUITY RATIO
(HY)
Highest at 80.76 %
INTEREST(Q)
Highest at USD 63.7 MM
EPS(Q)
Lowest at USD 0.82
Here's what is working for Paychex, Inc.
Dividend per share
Highest at USD 3.1 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Cash and Eqv
Highest at USD 3,361.1 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Dividend Payout Ratio
Highest at 131.66%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -1.96% (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
Depreciation
Highest at USD 85.7 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Depreciation
At USD 85.7 MM has Grown at 98.84%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (USD MM)
Here's what is not working for Paychex, Inc.
Interest
At USD 63.7 MM has Grown at 181.86%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 1,039.87
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at USD 63.7 MM
in the last five periods and Increased by 181.86% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
EPS
Lowest at USD 0.82
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Highest at 80.76 %
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
Non Operating Income
Highest at USD 0.06 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
