PAYX

Paychex Inc.

Finance/Real Estate, TMT


Presented:08/05/2024
Price:$124.70
Cap:$44.91B
Current Price:$142.30
Cap:$51.21B

Presented

Date08/05/2024
Price$124.70
Market Cap$44.91B
Ent Value$42.81B
P/E Ratio26.71x
Book Value$10.56
Div Yield2.93%
Shares O/S360.13M
Ave Daily Vol1,948,921
Short Int5.17%

Current

Price$142.30
Market Cap$51.21B
Paychex, Inc. provides human capital management solutions for payroll, human resources, insurance and retirement for small and medium-sized businesses. Its solutions include payroll services, hiring services, business insurance, time and attendance, employee benefits, finance and payments, human resources services and startup services. The company was founded by Blase Thomas Golisano in 1971 and is headquartered in Rochester, NY.

Publicly traded companies mentioned herein: Automatic Data Processing Inc (ADP), Cintas Corp (CTAS), Paychex Inc (PAYX)

Highlights

The presenter is short shares of Paychex Inc (PAYX), which was historically viewed as a HSD% grower with steady margins and a strong management team operating in a duopoly. Competition from ADP remains, but there is also increased competition from software companies, as well as AI risk. In recent years, PAYX has benefited from strong employment and high interest rates, the latter of which is evidenced by the company’s float revenue growth. With those tailwinds starting to unwind, he sees downside from the current $126 share price to $100. 

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Idea Discussion

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