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Upturn AI SWOT - About
PAYX 
Paychex Inc (PAYX)
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Stock price based on last close (see disclosures)
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Upturn Advisory Summary
09/12/2025: 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 $146.58
1 Year Target Price $146.58
| 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 09/12/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 48.59B USD | Price to earnings Ratio 29.5 | 1Y Target Price 146.58 |
Price to earnings Ratio 29.5 | 1Y Target Price 146.58 | ||
Volume (30-day avg) 18 | Beta 0.9 | 52 Weeks Range 128.21 - 160.03 | Updated Date 09/12/2025 |
52 Weeks Range 128.21 - 160.03 | Updated Date 09/12/2025 | ||
Dividends yield (FY) 2.97% | Basic EPS (TTM) 4.58 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 29.75% | Operating Margin (TTM) 38.72% |
Management Effectiveness
Return on Assets (TTM) 10.81% | Return on Equity (TTM) 41.8% |
Valuation
Trailing PE 29.5 | Forward PE 24.75 | Enterprise Value 52071822271 | Price to Sales(TTM) 8.72 |
Enterprise Value 52071822271 | Price to Sales(TTM) 8.72 | ||
Enterprise Value to Revenue 9.35 | Enterprise Value to EBITDA 20.91 | Shares Outstanding 359608992 | Shares Floating 321946350 |
Shares Outstanding 359608992 | Shares Floating 321946350 | ||
Percent Insiders 10.62 | Percent Institutions 81.49 |
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 expanded to offer HR, benefits, and insurance solutions. A significant milestone was its IPO in 1983. The company has grown through organic expansion and strategic acquisitions.
Core Business Areas
- Small Business Solutions: Offers payroll, HR, and benefit administration services designed for small to medium-sized businesses (SMBs). This includes payroll processing, tax administration, employee benefits, and HR support.
- Mid-Market Solutions: Provides HR, payroll, and benefits solutions tailored to larger, more complex organizations. This includes advanced HR analytics, talent management, and workforce management tools.
- Retirement Services: Offers retirement plan services, including 401(k) administration, recordkeeping, and compliance.
- Insurance Services: Provides access to various insurance products, including health, dental, and vision insurance, as well as business insurance.
Leadership and Structure
The CEO is John B. Gibson. Paychex has a hierarchical organizational structure with various departments reporting to executive leadership.
Top Products and Market Share
Key Offerings
- Paychex Flex: A cloud-based platform offering payroll, HR, and benefits administration. Market share is significant within the SMB payroll market. Competitors include ADP, Ceridian, and Workday. Revenue is a large portion of total revenue.
- Paychex HR: Provides HR outsourcing and consulting services. Competing vendors include Insperity, TriNet, and ADP TotalSource. A growing source of revenue for Paychex.
- SurePayroll: Paychex acquired SurePayroll. Specifically serves small businesses. Competitors include Gusto, Square Payroll.
Market Dynamics
Industry Overview
The HR outsourcing and payroll processing industry is competitive and driven by factors such as regulatory compliance, technological advancements, and the increasing complexity of HR functions.
Positioning
Paychex is a leading provider of payroll and HR solutions, particularly for SMBs. Its competitive advantages include a strong brand reputation, established customer base, and comprehensive service offerings.
Total Addressable Market (TAM)
The total addressable market for payroll and HR solutions is estimated to be substantial, in the hundreds of billions of dollars annually. Paychex is well-positioned to capture a significant share of this market.
Upturn SWOT Analysis
Strengths
- Strong Brand Recognition
- Large Customer Base
- Comprehensive Product Suite
- Established Distribution Network
- Financial Stability
Weaknesses
- Dependence on Payroll Processing
- Potential for Technology Disruption
- Price Competition
- Reliance on US Market
Opportunities
- Expanding into New Markets
- Developing Innovative Technology
- Acquiring Complementary Businesses
- Offering Value-Added Services
Threats
- Economic Downturn
- Increasing Competition
- Regulatory Changes
- Cybersecurity Risks
- Labor Shortages
Competitors and Market Share
Key Competitors
- ADP (ADP)
- Ceridian HCM Holding Inc. (CDAY)
- Workday (WDAY)
Competitive Landscape
Paychex possesses a competitive advantage in the SMB market, while facing strong competition from ADP and Ceridian in larger enterprise accounts. Paychex is more focused on the small-to-midsize market whereas ADP and Ceridian have strength in larger companies.
Major Acquisitions
Flock
- Year: 2024
- Acquisition Price (USD millions):
- Strategic Rationale: To enhance Paychex's HR technology offerings and expand its capabilities in employee benefits and compliance. Add benefits administration
HR Outsourcing, Inc. (HROI)
- Year: 2023
- Acquisition Price (USD millions):
- Strategic Rationale: To expand the company's coverage, customer base and consulting capabilities.
Growth Trajectory and Initiatives
Historical Growth: Paychex has experienced steady growth in revenue and earnings over the past decade, driven by organic expansion and strategic acquisitions.
Future Projections: Analysts project continued growth for Paychex, supported by increasing demand for HR outsourcing and payroll services. Projections will depend on market conditions.
Recent Initiatives: Recent strategic initiatives include investments in technology, expansion into new markets, and acquisitions of complementary businesses.
Summary
Paychex is a financially stable company with a strong position in the payroll and HR solutions market, particularly for SMBs. Its consistent dividend payouts and steady growth make it an attractive investment. The company faces potential threats from economic downturns and increasing competition, requiring continued investment in technology and strategic initiatives to maintain its market leadership.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Paychex Investor Relations
- SEC Filings
- Industry Reports
- Analyst Reports
Disclaimers:
The data provided is based on publicly available information and analyst estimates. Past performance is not indicative of future results. Investment decisions should be made based on individual risk tolerance and financial situation.
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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