Analyst Note| Brett Horn, CFA |
Paychex returned to growth in its fiscal fourth quarter as it lapped the onset of the pandemic last year. For all of fiscal 2021, revenue and operating income were essentially flat. While this reflects in part the recovery this quarter, we think the ability to maintain results despite the headwinds posed by the pandemic is a testament to the resilience of the wide-moat franchise. We will maintain our $78 fair value estimate.