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PAYX logo PAYX
Upturn stock ratingUpturn stock rating
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Paychex Inc (PAYX)

Upturn stock ratingUpturn stock rating
$135.11
Last Close (24-hour delay)
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PASS
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  • SELL Advisory (Loss)​
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Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
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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

rating

Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Number of Analysts

rating

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

Analysts Price Target For last 52 week
$146.58 Target price
52w Low $128.21
Current$135.11
52w High $160.03

Analysis of Past Performance

Type Stock
Historic Profit -4.3%
Avg. Invested days 36
Today’s Advisory PASS
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 3.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn 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

ai summary icon Upturn AI SWOT

Paychex Inc

stock logo

Company Overview

overview logo 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.

business area logo 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 logo 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

overview logo 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 logo 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

competitor logo 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.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization 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
Full time employees 19000

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.