Added to YB: 2025-07-30
Pitch date: 2025-06-08
PAYX [bearish]
Paychex, Inc.
+26.07%
current return
Author Info
No bio for this author
Company Info
Paychex, Inc., together with its subsidiaries, provides human capital management solutions (HCM) for payroll, employee benefits, human resources (HR), and insurance services for small to medium-sized businesses in the United States, Europe, and India.
Market Cap
$41.5B
Pitch Price
$156.42
Price Target
112.00 (-3%)
Dividend
3.74%
EV/EBITDA
16.88
P/E
25.89
EV/Sales
7.75
Sector
Professional Services
Category
N/A
Paychex, Inc. - $PAYX (short)
PAYX short: Premium valuation (9x+ sales, 20x+ EBITDA) amid fading tailwinds - new business formations moderating, COVID program benefits ending, client retention down from 2021 peak. ADP taking market share with aggressive down-market pricing. Rising DSOs, declining comp expenses suggest accounting issues, while rate-driven interest income may reverse.
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