Paychex, Inc. - $PAYX
5 months ago
Long-term Investing
"PAYX (overview - slightly overvalued): HCM leader for SMBs with comprehensive payroll/HR services. Post-Paycor acquisition, 16.5-18.5% FY26 revenue growth expected (12-13% from acquisition). Historically 7.3% revenue CAGR, 41.8% op margin, 80-85% client retention. Debt increased to $4.5B. Trading at 24x P/E, slightly overvalued vs DCF fair value of $136."
Sentiment
neutral
Conviction
Medium
Tier
Trade Call
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Episode Information
Episode:
Paychex, Inc. - $PAYX
Source:
Long-term Investing
Published:
July 31, 2025
Idea Type:
Stock Idea