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Paychex, Inc (PAYX) is a leading staffing & employment services business with stocks listed in the US. It opened the day at US$104.82 after a previous close of US$104.79. During the day the price has varied from a low of USD104.43 to a high of USD105.17. The latest price was USD105 (25 minute delay). Paychex is listed on the NASDAQ. All prices are listed in US Dollars.
How to buy shares in Paychex
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Paychex. Find the share by name or ticker symbol: PAYX. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Paychex reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$102.56, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Paychex, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Paychex. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- Paychex key stats
- Compare share trading platforms
- Is Paychex stock a buy or sell?
- Paychex performance over time
- Can I short Paychex shares?
- Is Paychex suitable for ethical investing?
- Are Paychex shares over-valued?
- Paychex's financials
- How volatile are Paychex shares?
- Does Paychex pay a dividend?
- Have Paychex shares ever split?
- Other common questions
Paychex share priceUse our graph to track the performance of PAYX stocks over time.
Paychex shares at a glance
|52-week range||US$67.9106 - US$104.23|
|50-day moving average||US$100.1746|
|200-day moving average||US$94.9439|
|Dividend yield||US$2.48 (2.39%)|
|Earnings per share (TTM)||US$2.92|
Compare share trading platforms to buy stock
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Is it a good time to buy Paychex stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Paychex price performance over time
|1 month (2021-05-14)||4.88%|
|3 months (2021-03-12)||10.24%|
|6 months (2020-12-14)||14.97%|
|1 year (2020-06-12)||42.35%|
|2 years (2019-06-14)||21.14%|
|3 years (2018-06-14)||51.43%|
|5 years (2016-06-14)||92.38%|
Is Paychex under- or over-valued?
Valuing Paychex stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Paychex's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Paychex's P/E ratio
Paychex's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 36x. In other words, Paychex shares trade at around 36x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Paychex's PEG ratio
Paychex's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 5.3827. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Paychex's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Paychex's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$1.6 billion.
The EBITDA is a measure of a Paychex's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||US$3.9 billion|
|Operating margin TTM||35.67%|
|Gross profit TTM||US$2.8 billion|
|Return on assets TTM||9.19%|
|Return on equity TTM||36.79%|
|Market capitalisation||US$37.6 billion|
TTM: trailing 12 months
Shorting Paychex shares
There are currently 8.5 million Paychex shares held short by investors – that's known as Paychex's "short interest". This figure is 8.7% up from 7.8 million last month.
There are a few different ways that this level of interest in shorting Paychex shares can be evaluated.
Paychex's "short interest ratio" (SIR)
Paychex's "short interest ratio" (SIR) is the quantity of Paychex shares currently shorted divided by the average quantity of Paychex shares traded daily (recently around 1.6 million). Paychex's SIR currently stands at 5.32. In other words for every 100,000 Paychex shares traded daily on the market, roughly 5320 shares are currently held short.
However Paychex's short interest can also be evaluated against the total number of Paychex shares, or, against the total number of tradable Paychex shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Paychex's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 Paychex shares in existence, roughly 20 shares are currently held short) or 0.0265% of the tradable shares (for every 100,000 tradable Paychex shares, roughly 27 shares are currently held short).
A SIR below 10% would generally be considered to indicate a fairly optimistic outlook for the share price, with fewer people currently willing to bet against Paychex.
Find out more about how you can short Paychex stock.
Paychex's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Paychex.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Paychex's total ESG risk score
Total ESG risk: 21.65
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Paychex's overall score of 21.65 (as at 12/31/2018) is excellent – landing it in it in the 16th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Paychex is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Paychex's environmental score
Environmental score: 7.61/100
Paychex's environmental score of 7.61 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Paychex is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Paychex's social score
Social score: 16.2/100
Paychex's social score of 16.2 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Paychex is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Paychex's governance score
Governance score: 13.33/100
Paychex's governance score puts it squarely in the 8th percentile of companies rated in the same sector. That could suggest that Paychex is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Environmental, social, and governance (ESG) summary
|Total ESG score||21.65|
|Total ESG percentile||16.06|
|Environmental score percentile||8|
|Social score percentile||8|
|Governance score percentile||8|
Paychex share dividends
Dividend payout ratio: 86.01% of net profits
Recently Paychex has paid out, on average, around 86.01% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.55% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Paychex shareholders could enjoy a 2.55% return on their shares, in the form of dividend payments. In Paychex's case, that would currently equate to about $2.48 per share.
Paychex's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
Paychex's most recent dividend payout was on 26 May 2021. The latest dividend was paid out to all shareholders who bought their shares by 10 May 2021 (the "ex-dividend date").
Have Paychex's shares ever split?
Paychex's shares were split on a 3:2 basis on 22 May 2000. So if you had owned 2 shares the day before before the split, the next day you'd have owned 3 shares. This wouldn't directly have changed the overall worth of your Paychex shares – just the quantity. However, indirectly, the new 33.3% lower share price could have impacted the market appetite for Paychex shares which in turn could have impacted Paychex's share price.
Paychex share price volatility
Over the last 12 months, Paychex's shares have ranged in value from as little as US$67.9106 up to US$104.23. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Paychex's is 0.8853. This would suggest that Paychex's shares are less volatile than average (for this exchange).
Paychex, Inc. provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small- to medium-sized businesses in the United States and Europe. The company offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing. It also provides HR solutions, including payroll, employer compliance, HR and employee benefits administration, risk management outsourcing, and the on-site availability of a professionally trained HR representative; and retirement services administration, including 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, the company offers cloud-based HR administration software products for employee benefits management and administration, time and attendance, 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, it 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. The company markets and sells its services primarily through its direct sales force. Paychex, Inc. was founded in 1979 and is headquartered in Rochester, New York.
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