The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
Highlights: Paychex, Inc.
Before interest, taxes, depreciation and amortization, the company's margins are particularly high.
Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
Thanks to a sound financial situation, the firm has significant leeway for investment.
Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
Analysts' price targets are all relatively close, reflecting good visibility on the company's valuation.
Historically, the company has been releasing figures that are above expectations.
Weaknesses: Paychex, Inc.
The potential for earnings per share (EPS) growth in the coming years appears limited according to current analyst estimates.
The firm trades with high earnings multiples: 27.09 times its 2025 earnings per share.
The company's "enterprise value to sales" ratio is among the highest in the world.
In relation to the value of its tangible assets, the company's valuation appears relatively high.
The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.