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Paychex Inc PAYX

Rating as of

Morningstar’s Analysis

Valuation
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Paychex Shows Resilience in Fiscal Second Quarter

Brett Horn, CFA Senior Equity Analyst

Analyst Note

| Brett Horn, CFA |

Paychex's fiscal second-quarter results showed the company holding up fairly well in the current environment, and we think its ability to improve its already ample margins during this period supports our wide moat rating on the firm. We will maintain our $74 per share fair value estimate.

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Company Profile

Business Description

Paychex competes in the payroll outsourcing industry. It is the second- largest player in terms of revenue and focuses on providing this service to small and midsize businesses. Paychex was created from the consolidation of 17 payroll processors in 1979 and services about 590,000 clients. The firm has almost 13,000 employees and is based in Rochester, New York.

Contact
911 Panorama Trail South
Rochester, NY, 14625-2396
T +1 585 385-6666
Sector Industrials
Industry Staffing & Employment Services
Most Recent Earnings Nov 30, 2020
Fiscal Year End May 31, 2021
Stock Type Cyclical
Employees 15,800

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