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Paychex, Inc. (PAYX) Stock Price, News & Analysis

Currency in USD Disclaimer
$117.43 -$0.95 (-0.8%)
$117.38
$118.38
$106.27
$129.7

Stock Score/grades

The Stock Score/Grades evaluate bankruptcy risk and assess the financial strength and fundamental health of a company


  • Altman Z Score 5.58
  • Piotroski Score 8.00
  • Grade Equal-Weight

Company brief: Paychex, Inc. (PAYX)


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, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing. The company 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, it offers cloud-based HR administration software products for employee benefits management and administration, time and attendance, digital communication solutions, 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, the company 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. 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.

Morningstar - News Details (View)

Details

  • Quant star rating 2
  • A 2-star rating suggests below-average performance compared to other similar companies.

  • Quant star rating date 07/02/2024
  • Quant economic moat label Wide
  • Quant economic moat date 07/03/2024
  • The economic moat refers to the competitive advantage a company has over its competitors. A narrow moat suggests that the company has a less sustainable competitive advantage compared to those with wider moats.

  • Price over quant fair value $1.05
  • Price over quant fair value date 07/03/2024
  • Quant fair value $111.37
  • Quant valuation Overvalued
  • Quant fair value date 07/03/2024
  • This ratio indicates whether the stock is trading above (greater than 1) or below (less than 1) its fair value as determined by Morningstar's quantitative analysis. A ratio of 0.94 suggests the stock is currently trading at a slight discount (undervalued).

  • Quant fair value uncertainty label Medium
  • Moderate uncertainty in fair value estimates suggests some potential volatility in the stock price. It is advisable for investors to consider their risk tolerance and investment horizon while evaluating stocks with this level of uncertainty.

  • One star price $125.77
  • Quant fair value uncertainty date 07/03/2024
  • These price estimates indicate the price levels at which Morningstar would consider the stock significantly overvalued (one-star) or undervalued (five-star) based on their analysis.

  • One star price date 07/03/2024
  • Five star price $98.63
  • Five star price date 07/03/2024
  • Quant financial health label Strong
  • Quant financial health date 07/03/2024
  • Moderate financial health suggests stability but also indicates potential risks. Evaluate the company's ability to manage its financial obligations and fund growth initiatives.

Investment Considerations:

Valuation vs. Price: The stock is currently considered undervalued relative to its fair value, which could present a buying opportunity if you believe in Morningstar's valuation methodology.

Moat and Competitive Position: The narrow economic moat indicates less sustainable competitive advantages. Consider whether the company's business model and market position align with your investment goals.

Financial Health: Moderate financial health suggests stability but also indicates potential risks. Evaluate the company's ability to manage its financial obligations and fund growth initiatives.

Uncertainty: High uncertainty in fair value estimates implies potential volatility in the stock price. Factor in your risk tolerance and investment horizon when assessing this uncertainty.


Company Calendar


  • 05/01/2024
  • 05/09/2024
  • 05/30/2024
  • N/A
  • 09/25/2024
  • N/A

Price Target and Rating


  • $127.50
  • $145.00
  • $115.00
  • N/A
  • Buy
  • N/A
  • N/A

Profitability


  • $4.59
  • 26.71
  • 26.71
  • 26.71
  • $1.69 B

Key Stats

Key stats represent essential financial metrics and indicators used to evaluate a company's performance and potential investment opportunities.


Latest News of PAYX

The Latest News section aggregates recent news posts from various news outlets, offering a comprehensive overview of the most recent developments related to the topic.


Moderate uncertainty in fair value estimates suggests some potential volatility in the stock price. It is advisable for investors to consider their risk tolerance and investment horizon while evaluating stocks with this level of uncertainty.
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