PAYX - Embedded Expectations Analysis - 2021 05 24
Paychex, Inc. (PAYX:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 28.8x Uniform P/E. At these levels, the market has bullish expectations for the firm, and management is excited about client HR solutions and confident about their virtual sales and self-service featuresSpecifically, management generated an excitement marker when saying clients have the desire to get HR solutions in place quickly given the changing landscape of regulations. Moreover, management is confident there will be a more normalized mix of ASO and PEO product selection as businesses begin to evaluate their options and possible decisions. Furthermore, they are confident sales are starting to pick up as reps and prospects are getting more comfortable meeting face-to-face, that they are helping clients with self-service questions through chatbots, and that they transitioned quickly to virtual selling and maximizing telephonic sales
Paychex is a provider of integrated human capital management (HCM) solutions for payroll, benefits, human resource (HR), and insurance services for small- to medium-sized businesses. The company's portfolio of HCM and employee benefit-related services include: payroll processing services; payroll tax administration services; employee payment services; regulatory compliance services (new-hire reporting and garnishment processing); HR Solutions Administrative Services Organization; retirement services administration; HR administration services, including time and attendance; other HR services and products; business services; Professional Employer Organization services; and insurance services.
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