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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
07/07/2025: PAYX (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
18 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $145.44
1 Year Target Price $145.44
| 1 | Strong Buy |
| 0 | Buy |
| 13 | Hold |
| 3 | Sell |
| 1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -4.31% | 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 07/07/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 53.04B USD | Price to earnings Ratio 31.88 | 1Y Target Price 145.44 |
Price to earnings Ratio 31.88 | 1Y Target Price 145.44 | ||
Volume (30-day avg) 18 | Beta 0.91 | 52 Weeks Range 112.18 - 161.24 | Updated Date 07/7/2025 |
52 Weeks Range 112.18 - 161.24 | Updated Date 07/7/2025 | ||
Dividends yield (FY) 2.97% | Basic EPS (TTM) 4.57 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-06-25 | When Before Market | Estimate 1.19 | Actual 1.19 |
Profitability
Profit Margin 29.75% | Operating Margin (TTM) 37.55% |
Management Effectiveness
Return on Assets (TTM) 10.81% | Return on Equity (TTM) 41.8% |
Valuation
Trailing PE 31.88 | Forward PE 27.03 | Enterprise Value 56399565000 | Price to Sales(TTM) 9.52 |
Enterprise Value 56399565000 | Price to Sales(TTM) 9.52 | ||
Enterprise Value to Revenue 10.12 | Enterprise Value to EBITDA 22.64 | Shares Outstanding 360500000 | Shares Floating 322200480 |
Shares Outstanding 360500000 | Shares Floating 322200480 | ||
Percent Insiders 10.62 | Percent Institutions 81.52 |
Upturn AI SWOT
Paychex Inc
Company Overview
History and Background
Paychex Inc. was founded in 1971 by B. Thomas Golisano. Initially a payroll processing company, it has evolved into a comprehensive provider of human capital management (HCM) solutions for small- to medium-sized businesses (SMBs). Significant milestones include its IPO in 1983 and subsequent expansion into HR outsourcing, benefits administration, and insurance services.
Core Business Areas
- Management Solutions: Offers payroll processing, tax administration, retirement services, and HR solutions, primarily targeting small to medium-sized businesses.
- Professional Employer Organization (PEO) Solutions: Provides comprehensive HR outsourcing services, including benefits, HR, payroll, and risk management, for small to medium-sized businesses.
Leadership and Structure
The CEO of Paychex Inc. is John B. Gibson. The organizational structure is hierarchical, with various departments reporting to executive leadership.
Top Products and Market Share
Key Offerings
- Payroll Processing: Paychex provides payroll processing services. The market is highly competitive. Paychex has a significant market share in the SMB segment. Competitors include ADP, Intuit, and smaller regional players.
- HR Solutions: Includes HR outsourcing, employee benefits administration, and other HR-related services. The market is growing due to increasing complexity of HR regulations and benefits. Competitors include ADP, Insperity, and TriNet.
- Insurance Services: Offers business insurance to small business customers. Competitors include The Hartford, Progressive, and Travelers.
- Market Share: Estimated less than 10% of insurance market
Market Dynamics
Industry Overview
The HCM industry is experiencing growth due to increasing regulatory complexities, globalization, and the need for businesses to manage their workforce efficiently. Trends include cloud-based solutions, mobile access, and data analytics.
Positioning
Paychex Inc. is a major player in the SMB HCM market, known for its strong customer service and comprehensive suite of solutions. Its competitive advantages include its established brand, extensive distribution network, and focus on the SMB segment.
Total Addressable Market (TAM)
The global human capital management (HCM) market size was valued at $25.73 billion in 2022 and is projected to grow from $28.74 billion in 2023 to $52.69 billion by 2030. Paychex is well-positioned to capture a share of this growing TAM with its focus on SMBs.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Extensive distribution network
- Comprehensive suite of HCM solutions
- Focus on the SMB market
- Strong financial performance
Weaknesses
- Relatively higher pricing compared to some competitors
- Dependence on the SMB market
- Potential for disruption from newer, more agile competitors
Opportunities
- Expanding into new geographic markets
- Developing new, innovative HCM solutions
- Acquiring smaller competitors
- Leveraging data analytics to provide more value to clients
Threats
- Increasing competition from larger players like ADP and Workday
- Economic downturns impacting SMBs
- Changes in government regulations
- Cybersecurity risks
Competitors and Market Share
Key Competitors
- ADP (ADP)
- Intuit (INTU)
- Insperity (NSP)
Competitive Landscape
Paychexu2019s advantage lies in its SMB focus and service reputation. ADP has broader reach and resources. Intuit dominates the very small business segment. Insperity offers more comprehensive HR solutions, focusing on larger SMBs.
Major Acquisitions
Flock
- Year: 2023
- Acquisition Price (USD millions):
- Strategic Rationale: Strategic Rationale: This acquisition enhances Paychex's HR technology offerings and provides a more integrated experience for clients.
Future Proof Employer
- Year: 2022
- Acquisition Price (USD millions):
- Strategic Rationale: Future Proof Employer is a learning management system which enhances Paychex's HR technology offerings for clients.
Growth Trajectory and Initiatives
Historical Growth: Paychex has experienced consistent revenue growth over the past decade, driven by its strong position in the SMB market and strategic acquisitions.
Future Projections: Analysts project continued revenue growth for Paychex, driven by the increasing demand for HCM solutions and the company's expanding product offerings. Growth rates are expected to be in the mid-single digits.
Recent Initiatives: Recent initiatives include expanding its HR outsourcing services, developing new cloud-based solutions, and investing in data analytics capabilities.
Summary
Paychex is a financially stable company with a strong position in the SMB HCM market. Its focus on customer service and comprehensive solutions are working well. However, Paychex faces increasing competition and needs to continue innovating to maintain its market share and growth momentum. Economic downturns can impact its SMB client base, which is a key area to watch out for. The company has had several key acquisitions recently.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC Filings (10-K, 10-Q)
- Earnings Call Transcripts
- Market Research Reports (e.g., Gartner, Forrester)
- Analyst Reports (e.g., from major investment banks)
- Company Website and Press Releases
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market conditions and company performance can change rapidly. Consult with a qualified financial advisor before making any investment decisions.
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 - | Website https://www.paychex.com |
Full time employees - | Website https://www.paychex.com | ||
Paychex, Inc., together with its subsidiaries, provides integrated human capital management solutions (HCM) for payroll, 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, such as new-hire reporting and garnishment processing. The company also provides HR solutions, including integrated HCM technology solutions and HR advisory services through both virtual and on-site availability of a professionally trained HR representative, as well as HR support to non-payroll clients through its HR Partner Plus solution; and retirement services administration, 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. In addition, it offers cloud-based HR administration software products for employee benefits management and administration, time and attendance, digital communication solutions, recruiting, and onboarding solutions; plan administration outsourcing and state unemployment insurance services; various business services to small to medium-sized businesses comprising payroll funding and outsourcing services, which include payroll processing, invoicing, and tax preparation; and payment processing services, financial fitness programs, and a small-business loan resource center. Further, the company provides 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. 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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