$PAYX (-1,52%)

paychex Paychex is a US company that specializes in outsourcing payroll, human resources and benefits for small and medium-sized businesses.

Founded in Rochester, New York in 1971, the company offers Paychex Flex, a cloud-based platform that combines payroll, tax automation, HR management, time tracking and benefits administration in one easy-to-use platform. The company serves over 710,000 customers, mainly in the US and Northern Europe.

The German subsidiary (Paychex Deutschland GmbH) offers payroll and HR solutions, including cloud software for payroll and HR administration. Paychex combines technology with consulting services to help companies manage payroll and HR efficiently.

Services include full payroll processing, automated tax processing, employee self-service options, HR recruiting, onboarding and employee development tools. Pricing is based on company size and specific requirements.

Paychex emphasizes data security through physical and electronic safeguards. The company is listed on the NASDAQ-100 and S&P 500 and has a market capitalization of around 38 billion euros in 2025.

It remains a leading provider of payroll and HR solutions worldwide and in Germany in particular, supporting thousands of companies with integrated digital payroll and HR management services.

$PAYX (-1,52%)

Paychex Inc. is one of the leading providers of human capital management - i.e. payroll, HR, benefits and related services - primarily for small and medium-sized companies in the USA. The company was founded in 1971 and today pays every twelfth private employee in the USA. from.

Long-term performance: Impressive

• Total return (10 years): over +300 %
• Ø annual growth: approx. 15 %

Key financial figures at a glance

💵 Revenue per share (RPS)

• From 8.20 USD (FY16) to 15.50 USD (FY25)
• Ø growth:
  7.3 % per year

💰 Gross margin

• Stable at around 70 %, most recently even 72.4 % (FY25)

📊 Return on invested capital (ROIC)

• 16.3 % in FY25 - a strong figure that indicates efficient use of capital

💸 Dividend strength

• Dividend increased for 10+ years
• From 1.76 USD (FY16) to almost 4.00 USD (FY25)
• Growth mostly >10 % per year
• High payout ratiobut easily sustainable due to low CapEx

Challenges & risks

🏦 Macroeconomic uncertainty

• More insolvencies among small customers
• CEO John Gibson warns of cautious spending & hiring

🧾 Elimination of the ERTC (Employee Retention Tax Credit)

• Burden of 200-300 basis points on sales growth
• Particular impact on the Payroll Tax business
• Share fell after Q4 figures by almost 10 %

📊 Q4 & financial year 2025 at a glance

• Q4 turnover: USD 1.43 billion → +10 % YoY
• EPS (non-GAAP): USD 1.19 → in line with expectations
• Most important segments:
• Management Solutions: +12 % sales (75 % share)
• PEO & Insurance: +4 %
• Interest on customer deposits: +18 % (mainly due to Paycor acquisition)
• FY25 total sales: +6 %
• EPS (adjusted): +6 %
• Operating margin: +60 basis points
• Dividend payments: USD 1.5 billion
• Share buybacks: > USD 100 million

🔮 Outlook for 2026

• Initial forecasts have been published (see presentation below for details)
• Focus is on product penetration, cross-selling and AI initiatives

Conclusion

Paychex remains a highly profitable quality company with a strong dividend history and solid return on capital.

However, in the short term macroeconomic risks and the absence of special effects such as the ERTC are weighing on growth.

For long-term investors with a focus on stability and dividend yield PAYX could nevertheless remain interesting - especially if the environment brightens up again.

My YouTube channel for more stock analysis: www.youtube.com/@Verstehdieaktie

$SOFI (+3,68%)
$PAYX (-1,52%)

$SOFI (+3,68%) at Work now offers resources and solutions for financial wellness - including personal loans, credit refinancing, nest eggs, financial counseling and more.

Exciting times at Paychex! 🚀 We have teamed up with $SOFI (+3,68%) to expand our Paychex Flex Perks offering. Now your employees can access world-class financial tools and solutions from SoFi at Work to support their financial well-being. A win-win situation!

https://bit.ly/44Oru27

https://www.businesswire.com/news/home/20250717353048/en/Paychex-and-SoFi-at-Work-Join-Forces-to-Expand-Financial-Well-being-Offerings

Earnings next week.

Not much will happen before the holidays.

$RCAT (+3,73%)
$GIS (-2,45%)
$MU (+4,36%)
$LEN (+0,86%)
$ACN
$CTAS (-1,45%)
$DRI (-0,59%)
$PAYX (-1,52%)
$NKE (+0,61%)
$FDX (-0,33%)
$CCL (-1,78%)

But very interesting companies that might be found in one or the other portfolio here.

A successful week before the holidays.🙋🏼‍♂️

Earnings next week 🗓️

$MU (+4,36%)

$NKE (+0,61%)

$CCL (-1,78%)

$FDX (-0,33%)

$RCAT (+3,73%)

$ACN

$BB (+2,32%)

$LEN (+0,86%)

$DRI

$CTAS (-1,45%)

$MAMA

$FDS (-2,53%)

$GIS (-2,45%)

$HEIA (-1,21%)

$ABM (+0,51%)

$WGO (-2,86%)

$AMTM (+2,59%)

$BIRK (-0,94%)

$REE

$TTC

$CAG

$AVO (-0,98%)

$MLKN (+2,04%)

$PAYX (-1,52%)

$KMX (-2,08%)

$FCEL

$SCHL (+3,32%)

$SCS

$WS (+3,08%)

$LW (+0,14%)

$QIPT

$CMP

$MITK (+1,35%)

$JBL (+3,61%)

$EPAC (+1,39%)

$OGI

$RICK (-2,82%)

Earnings next week

$CCL (-2,28%)

$PAYX (-1,52%)

$NKE (+0,61%)

$LEVI (+0,6%)

What the week brings:

Monday:

• Speech by Mary C. DalyPresident of the Federal Reserve Bank of San Francisco

Tuesday:

• S&P CoreLogic Case-Shiller Home Price Index (April)
• Consumer Confidence (June)
• Speeches by Michelle Bowman and Lisa D. CookGovernors of the Federal Reserve
• Quarterly reports from FedEx Corp ($FDX) (-0,33%)
  Carnival Corp ($CCL (-2,28%))

Wednesday:

• New home sales (May)
• Nvidia ($NVDA) (+1,16%) Annual general meeting
• Quarterly reports from Micron Technology ($MU (+4,36%)), Paychex, Inc. ($PAYX (-1,52%) ), General Mills, Inc. ($GIS), Jefferies Financial Group ($JEF (-0,25%) ), Levi Strauss & Co. ($LEVI (+0,6%) )

Thursday:

• Initial claims for unemployment benefits (week ending June 22)
• Preliminary foreign trade in goods (May)
• Preliminary wholesale inventories (May)
• Provisional retail stocks (May)
• Pending home sales (May)
• Durable Goods Orders (May)
• Salesforce Annual General Meeting $crm
• Quarterly reports from Nike, Inc. ($NKE (+0,61%) ), Walgreens Boots Alliance ($WBA), McCormick & Company ($MKC (-1,51%) )

Friday:

• Personal Consumption Expenditures (PCE) Price Index (May)
• Consumer Sentiment (June)
• Chicago Business Barometer (June)
• Speech by Tom BarkinPresident of the Federal Reserve Bank of Richmond

The week summarized:

Monday

• S&P U.S. Manufacturing PMI (final March)
• Construction Spending (February)
• ISM Manufacturing (March)

Tuesday

• Vacancies (February)
• The President of the FED of San Francisco, Mary Dalygives speeches, and the President of the FED of New York, John Williamsmoderates a panel discussion
• Publication of business figures from Paychex ($PAYX (-1,52%) ), Cal-Maine Foods ($CALM (-1,73%) ) and Dave & Buster's Entertainment ($PLAY (-0,65%) )

Wednesday

• ADP Employment (March)
• S&P U.S. Services PMI (final March)
• ISM Services (March)
• The President of the FED of Chicago, Austan Goolsbeegives speeches, and Jerome Powell participates in a forum at at Standford University attends
• Publication of business figures from Acuity Brands ($AYI (+2,9%) ), Levi Strauss ($LEVI (+0,6%) ) and BlackBerry Limited ($BB (+2,32%) )
• Annual General Meeting of Disney ($DIS (-0,62%) )

Thursday

• US trade balance (February)
• Speeches by Loretta MesterPresident of the FED of Cleveland, and Austan GoolsbeePresident of the Chicago FED
• Publication of earnings by RPM International ($RPM (+0%) ) and Conagra Brands ($CAG )

Friday

• 
  US Labor Market Report (March)
• Consumer Credit (February)