tickrz reports
Paychex Inc (PAYX)
Services | Diversified Services
68.30  0.93%
PAYX vs DIVERSIFIED SERVICES SECTOR & S&P 500
VALUATION
PAYXSECTORS&P 500
P/E RATIO29.3431.821.12
EV/EBITDA RATIO12.7116.412.66
P/S RATIO7.554.32.25
P/B RATIO12.429.13.45
QUALITY
RETURN ON EQUITY44.53%29.21%13.64%
RETURN ON CAPITAL%25.63%10.09%
NET MARGIN25.94%9.82%9.73%
DIVIDEND ANALYSIS
DIVIDEND YIELD
2.84%
PAYOUT RATIO81.85%
3 YR DIVIDEND GROWTH9.54%
FINANCIAL STRENGTH
PIOTROSKI F SCORE
7 OUT OF 9
DEBT-TO-EQUITY7%
INTEREST COVERAGE388.7x
CURRENT RATIO1.09
GROWTH
5 YR EPS GROWTH8.3%
5 YR SPS GROWTH7.16%
5 YR BPS GROWTH4.22%
About tickrz
Key Concepts
Great Investors
Paychex Inc's return on equity of 44.53% speaks to its strong moat
TICKRZBOT SUMMARY
Paychex Inc receives a C ranking in our multi-factor model that blends valuation, moat, operational performance, and financial strength. View the tickrz MFM Screener here. Here's a summary of Paychex Inc's factor rankings that are combined together to calculate the tickrz MFM ranking:

FACTOR RANKINGSFACTOR SCREENER 
TICKRZ MFM RANK C / 256PURE VALUE RANKD / 379
DIVIDEND RANKC / 291MOAT RANKA / 28
FINANCIAL STRENGTH RANKA / 18GROWTH RANKB / 189
MOMENTUM RANKC / 267
GURU ANALYSIS
Buffett Rank B / 187Peter Lynch Rank B / 113
Paychex Inc ranks 187 out of the S&P 500 constituents in our multi-factor Warren Buffett ranking methodology. This is a average score, meaning it ranks in the middle of the pack on valuation, moat, volatility, and financial strength factors. The stock's average Buffett rank suggests waiting for improved valuation or quality metrics before taking action. The company's moat is strong so it could be worth investigating in the future should its valuation improve.Our Peter Lynch mutli-factor model ranks stocks on their PEG ratio, Financial Strength, margin profile, and their P/Es relative to their respective industry groups. Paychex Inc ranks 113, a relatively average score.
Alex Roepers Rank A / 70Joel Greenblatt Rank N/A
Alex Roepers, founder of Atlantic Investment Management, looks for stocks trading at low EV/EBITDA multiples with strong and consistent free cash flow. Paychex Inc ranks 70 out of the S&P 500 constituents on our Roepers-inspired multi-factor model.Unfortunately tickrzbot doesn't have enough information to calculate this stock's Joel Greenblatt ranking.
FACTOR RANKINGS
Value
Pure Value Ranking D / 379
Valuation is the most heavily weighted component in our tickrz ranking methodology. Numerous academic and practitioner studies have found that a value approach outperforms the market over the long-run. Paychex Inc's valuation score is comprised of a P/E ratio of 29.3x, a P/B ratio of 12.4x, a P/S ratio of 7.6x, and an EV/EBITDA ratio of 12.7x. Paychex Inc ranks 379 out of the S&P 500 constituents on valuation--a relatively weak score.

Quality
Moat A / 28Financial Strength A / 18
To calculate a company's Moat Score, we look at its historical earnings growth, historical average return on equity, the volatility of its earnings stream, and also factor in the strength of its balance sheet. Our approach concludes the company's business moat is strong. Paychex Inc appears to have a durable competitive advantage within the Services sector. Paychex Inc has a Piotroski F Score of 7 out of 9. The F Score examines changes in profitability, leverage, liquidity, and operating efficiency. Interest coverage of 388.7x, a debt/equity ratio of 7% and a Moat Rank of 28 translate to a strong Financial Strength score.


Momentum C / 267
Investment research has shown that stocks with strong performance over the last 6 to 12 months tend to perform better in the medium term than stocks with poor performance over the same period. In fact, the momentum factor is one of the strongest of all the investment factors. The company has seen its stock appreciate by 12.01% over the last 12 months. This performance is weak compared to other stocks in the S&P 500, earning it a rank of 267. Based on its 12 month stock performance, Paychex Inc will not appeal to momentum investors.

Yield C / 291
Value + Yield
Shares currently yield 2.84%. Our dividend ranking approach looks at a company's dividend growth rate, payout ratio, business moat, and valuation. Based on our methodology, Paychex Inc ranks 291 among the S&P 500 constituents. Investors looking for undervalued dividend stocks will probably want to look elsewhere.

Growth B / 189
A company's growth metrics are less important than its valuation, moat, and financial strength. However, a check on growth can be a good way to avoid companies in secular decline. The company's growth in sales, earnings, and book value produce an average score. 8.3% 5 year annualized EPS growth, 7.2% 5 year annualized sales-per-share growth, and 5 year annualized book value-per-share growth of 4.2% combine to produce this average score.

Paychex Inc (PAYX)
Services | Diversified Services
68.30  0.93%


tickrz rank
C
VALUATION RATIOS
P/E Ratio29.34x
P/B Ratio12.42x
P/S Ratio7.55x
EV/EBITDA Ratio12.71x
DIVIDEND ANALYSIS
DIVIDEND YIELD
2.84%
PAYOUT RATIO81.85%
3 YR DIVIDEND GROWTH9.54%
FINANCIAL STRENGTH
PIOTROSKI F SCORE
7 OUT OF 9
DEBT-TO-EQUITY7%
INTEREST COVERAGE388.7x
CURRENT RATIO1.09
MOAT
ROE44.53%
ROIC
Net Margin25.94%
GROWTH
5 YR EPS GROWTH8.3%
5 YR SPS GROWTH7.16%
5 YR BPS GROWTH4.22%

TICKRZ RANK
Paychex Inc receives a C ranking in our multi-factor model that blends valuation, moat, operational performance, and financial strength. View the tickrz MFM Screener here.

PURE VALUE
Valuation is the most heavily weighted component in our tickrz ranking methodology. Numerous academic and practitioner studies have found that a value approach outperforms the market over the long-run. Paychex Inc's valuation score is comprised of a P/E ratio of 29.3x, a P/B ratio of 12.4x, a P/S ratio of 7.6x, and an EV/EBITDA ratio of 12.7x. Paychex Inc ranks 379 out of the S&P 500 constituents on valuation--a relatively weak score.

WARREN BUFFETT RANKING
Paychex Inc ranks 187 out of the S&P 500 constituents in our multi-factor Warren Buffett ranking methodology. This is a average score, meaning it ranks in the middle of the pack on valuation, moat, volatility, and financial strength factors. The stock's average Buffett rank suggests waiting for improved valuation or quality metrics before taking action. The company's moat is strong so it could be worth investigating in the future should its valuation improve.

MOAT
To calculate a company's Moat Score, we look at its historical earnings growth, historical average return on equity, the volatility of its earnings stream, and also factor in the strength of its balance sheet. Our approach concludes the company's business moat is strong. Paychex Inc appears to have a durable competitive advantage within the Services sector.

FINANCIAL STRENGTH
Paychex Inc has a Piotroski F Score of 7 out of 9. The F Score examines changes in profitability, leverage, liquidity, and operating efficiency. Interest coverage of 388.7x, a debt/equity ratio of 7% and a Moat Rank of 28 translate to a strong Financial Strength score.

MOMENTUM
Investment research has shown that stocks with strong performance over the last 6 to 12 months tend to perform better in the medium term than stocks with poor performance over the same period. In fact, the momentum factor is one of the strongest of all the investment factors. The company has seen its stock appreciate by 12.01% over the last 12 months. This performance is weak compared to other stocks in the S&P 500, earning it a rank of 267. Based on its 12 month stock performance, Paychex Inc will not appeal to momentum investors.

VALUE + YIELD
Shares currently yield 2.84%. Our dividend ranking approach looks at a company's dividend growth rate, payout ratio, business moat, and valuation. Based on our methodology, Paychex Inc ranks 291 among the S&P 500 constituents. Investors looking for undervalued dividend stocks will probably want to look elsewhere.

GROWTH
A company's growth metrics are less important than its valuation, moat, and financial strength. However, a check on growth can be a good way to avoid companies in secular decline. The company's growth in sales, earnings, and book value produce an average score. 8.3% 5 year annualized EPS growth, 7.2% 5 year annualized sales-per-share growth, and 5 year annualized book value-per-share growth of 4.2% combine to produce this average score.