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Upturn AI SWOT - About
PAYX 
Paychex Inc (PAYX)
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Upturn Advisory Summary
10/13/2025: PAYX (2-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Number of Analysts
18 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $135.15
1 Year Target Price $135.15
| 1 | Strong Buy |
| 0 | Buy |
| 13 | Hold |
| 3 | Sell |
| 1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -4.3% | Avg. Invested days 36 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/13/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 45.86B USD | Price to earnings Ratio 28.57 | 1Y Target Price 135.15 |
Price to earnings Ratio 28.57 | 1Y Target Price 135.15 | ||
Volume (30-day avg) 18 | Beta 0.91 | 52 Weeks Range 119.02 - 160.03 | Updated Date 10/13/2025 |
52 Weeks Range 119.02 - 160.03 | Updated Date 10/13/2025 | ||
Dividends yield (FY) 3.28% | Basic EPS (TTM) 4.46 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-09-30 | When Before Market | Estimate 1.2 | Actual 1.22 |
Profitability
Profit Margin 27.86% | Operating Margin (TTM) 36.73% |
Management Effectiveness
Return on Assets (TTM) 10.81% | Return on Equity (TTM) 41.27% |
Valuation
Trailing PE 28.57 | Forward PE 22.78 | Enterprise Value 47768835129 | Price to Sales(TTM) 7.92 |
Enterprise Value 47768835129 | Price to Sales(TTM) 7.92 | ||
Enterprise Value to Revenue 8.25 | Enterprise Value to EBITDA 18.66 | Shares Outstanding 359894143 | Shares Floating 321608604 |
Shares Outstanding 359894143 | Shares Floating 321608604 | ||
Percent Insiders 10.61 | Percent Institutions 83.15 |
Upturn AI SWOT
Paychex Inc
Company Overview
History and Background
Paychex, Inc. was founded in 1971 by B. Thomas Golisano. Initially a payroll services company, it has evolved to offer a comprehensive suite of human resource, benefits, and insurance solutions. Key milestones include going public in 1983 and expanding its service offerings through acquisitions and organic growth.
Core Business Areas
- Management Solutions: Provides payroll processing, tax administration, HR solutions, time and attendance, and other business services primarily to small and medium-sized businesses (SMBs).
- Professional Employer Organization (PEO) Solutions: Offers comprehensive HR outsourcing solutions, including HR administration, benefits, risk management, and payroll services, primarily for larger SMBs.
Leadership and Structure
Paychex is led by President and CEO John B. Gibson. The company has a traditional corporate structure with functional departments reporting to executive leadership.
Top Products and Market Share
Key Offerings
- Paychex Flex: A cloud-based platform offering payroll, HR, and benefits administration. Competitors include ADP, Workday, and Intuit. Revenue is not publicly broken down specifically for Paychex Flex, but it is a significant driver of management solutions revenue. Market share is estimated to be around 16% among SMBs.
- ASO (Administrative Services Organization): Provides HR outsourcing services without co-employment. Market share data is difficult to isolate specifically for ASO within the broader HR outsourcing market. Competitors include ADP, Insperity, and TriNet.
- PEO (Professional Employer Organization): A comprehensive HR outsourcing solution where Paychex co-employs the client's employees. Competitors include ADP TotalSource, Insperity, and TriNet. Market share is estimated to be around 4% among PEOs.
Market Dynamics
Industry Overview
The payroll and HR solutions industry is competitive and fragmented, driven by factors such as increasing regulatory complexity, the need for efficient HR management, and technological advancements.
Positioning
Paychex is positioned as a leading provider of payroll and HR solutions, particularly for SMBs. Its competitive advantages include a strong brand reputation, a large client base, and a comprehensive suite of services.
Total Addressable Market (TAM)
The global payroll and HR solutions market is estimated to be several hundred billion dollars. Paychex, with its focus on SMBs, captures a significant portion of this TAM. The estimated TAM is $100 Billion for the HR Tech Market.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Large and diverse client base
- Comprehensive suite of services
- Established distribution network
- Recurring revenue model
Weaknesses
- Reliance on SMB market (cyclical risk)
- Competition from larger players (ADP, Workday)
- Potential for disruption from emerging technologies
- Customer service issues
Opportunities
- Expansion into new markets
- Development of new products and services (e.g., AI-powered HR tools)
- Strategic acquisitions
- Increasing adoption of cloud-based solutions
- Offering new products to customer base
Threats
- Economic downturn
- Increased competition
- Regulatory changes
- Data security breaches
- Cybersecurity threats
Competitors and Market Share
Key Competitors
- ADP
- GHDX
- TRI
Competitive Landscape
Paychex competes effectively with ADP in the SMB market, offering a more personalized service approach. However, ADP has a greater global reach and broader service offerings. Growth is being challenged by newer HR tech companies
Major Acquisitions
HR Solutions
- Year: 2020
- Acquisition Price (USD millions): 145
- Strategic Rationale: Expansion of HR service capabilities.
Growth Trajectory and Initiatives
Historical Growth: Paychex has achieved consistent growth through a combination of organic expansion and strategic acquisitions.
Future Projections: Analysts expect continued revenue and earnings growth, driven by the increasing demand for HR solutions and the company's strong competitive position. Revenue growth is projected around 7% annually over the next few years.
Recent Initiatives: Recent initiatives include investments in technology, expansion of service offerings, and strategic acquisitions to broaden its market reach.
Summary
Paychex is a strong company with a well-established position in the payroll and HR solutions market. Its focus on SMBs provides a stable customer base. The company's consistent dividend payments and shareholder returns demonstrate its financial strength. However, it faces increasing competition and must adapt to evolving technological landscape.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC filings
- Analyst reports
- Industry publications
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market conditions and company performance are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Paychex Inc
Exchange NASDAQ | Headquaters Rochester, NY, United States | ||
IPO Launch date 1990-03-26 | President, CEO & Director Mr. John B. Gibson Jr. | ||
Sector Technology | Industry Software - Application | Full time employees 19000 | Website https://www.paychex.com |
Full time employees 19000 | Website https://www.paychex.com | ||
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. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services. The company provides retirement solutions, 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; HCM solutions from recruiting and hiring to retirement; and talent management and talent acquisition services. In addition, it offers payroll solutions, including calculation, preparation, and delivery of employee payroll checks; production of internal accounting records and management reports; preparation of federal, state, and local payroll tax returns; and collection and remittance of clients' payroll obligations. Further, the company provides workforce management solutions; benefits administration solutions; digital marketplace for earned wages, financial wellness solutions, and voluntary lifestyle benefits; HR support to non-payroll clients through HR Partner Plus solution; and 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. Additionally, it offers payroll, employer compliance, HR and employee benefits administration, risk management outsourcing, and both virtual and on-site availability of a professionally trained HR representative, and other solutions to businesses. 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.
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