PAYX
Paychex·NASDAQ
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8.01 / 10
Outperform
PAYX boasts excellent fundamentals (score 8.0/10) driven by a healthy EBIT margin of 40.94% and an operating cycle of 114.66 days, both ranking in the top quartile for performance. However, fixed and current asset turnover ratios are suboptimal, and the equity multiplier of 4.01 suggests higher leverage. Overall, the company's operational efficiency and profitability support a strong base, but asset management and leverage warrant caution.
Analysis Checks(4/10)
Shareholders’ equity attributable to parent company / Total liabilities (%)
Value0.33
Score1/3
Weight0.07%
1M Return0.37%
Value0.33
Score1/3
Weight0.07%
1M Return0.37%
Total operating revenue (YoY growth rate %)
Value5.56
Score2/3
Weight0.21%
1M Return1.02%
Value5.56
Score2/3
Weight0.21%
1M Return1.02%
Equity ratio (Total liabilities / Shareholders’ equity attributable to parent company) (%)
Value3.01
Score1/3
Weight0.08%
1M Return0.42%
Value3.01
Score1/3
Weight0.08%
1M Return0.42%
Fixed assets turnover ratio
Value12.07
Score1/3
Weight0.10%
1M Return0.52%
Value12.07
Score1/3
Weight0.10%
1M Return0.52%
Total assets turnover ratio
Value0.41
Score0/3
Weight-0.20%
1M Return-1.20%
Value0.41
Score0/3
Weight-0.20%
1M Return-1.20%
Operating cycle
Value114.66
Score3/3
Weight51.53%
1M Return272.03%
Value114.66
Score3/3
Weight51.53%
1M Return272.03%
Equity multiplier
Value4.01
Score1/3
Weight0.06%
1M Return0.30%
Value4.01
Score1/3
Weight0.06%
1M Return0.30%
Current assets turnover ratio
Value0.69
Score0/3
Weight-0.17%
1M Return-1.01%
Value0.69
Score0/3
Weight-0.17%
1M Return-1.01%
Operating revenue (YoY growth rate %)
Value5.56
Score2/3
Weight0.15%
1M Return0.73%
Value5.56
Score2/3
Weight0.15%
1M Return0.73%
EBIT / Total operating revenue (%)
Value40.94
Score3/3
Weight48.17%
1M Return266.85%
Value40.94
Score3/3
Weight48.17%
1M Return266.85%
Shareholders’ equity attributable to parent company / Total liabilities (%)
Value0.33
Score1/3
Weight0.07%
1M Return0.37%
Value0.33
Score1/3
Weight0.07%
1M Return0.37%
Operating cycle
Value114.66
Score3/3
Weight51.53%
1M Return272.03%
Value114.66
Score3/3
Weight51.53%
1M Return272.03%
Total operating revenue (YoY growth rate %)
Value5.56
Score2/3
Weight0.21%
1M Return1.02%
Value5.56
Score2/3
Weight0.21%
1M Return1.02%
Equity multiplier
Value4.01
Score1/3
Weight0.06%
1M Return0.30%
Value4.01
Score1/3
Weight0.06%
1M Return0.30%
Equity ratio (Total liabilities / Shareholders’ equity attributable to parent company) (%)
Value3.01
Score1/3
Weight0.08%
1M Return0.42%
Value3.01
Score1/3
Weight0.08%
1M Return0.42%
Current assets turnover ratio
Value0.69
Score0/3
Weight-0.17%
1M Return-1.01%
Value0.69
Score0/3
Weight-0.17%
1M Return-1.01%
Fixed assets turnover ratio
Value12.07
Score1/3
Weight0.10%
1M Return0.52%
Value12.07
Score1/3
Weight0.10%
1M Return0.52%
Operating revenue (YoY growth rate %)
Value5.56
Score2/3
Weight0.15%
1M Return0.73%
Value5.56
Score2/3
Weight0.15%
1M Return0.73%
Total assets turnover ratio
Value0.41
Score0/3
Weight-0.20%
1M Return-1.20%
Value0.41
Score0/3
Weight-0.20%
1M Return-1.20%
EBIT / Total operating revenue (%)
Value40.94
Score3/3
Weight48.17%
1M Return266.85%
Value40.94
Score3/3
Weight48.17%
1M Return266.85%
Is PAYX fundamentally strong?
- PAYX scores 8.01/10 on fundamentals and holds a Discounted valuation at present. Backed by its 19.46% ROE, 26.45% net margin, 22.17 P/E ratio, 9.12 P/B ratio, and -7.32% earnings growth, these metrics solidify its Outperform investment rating.
