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Paychex (NAS:PAYX) Earnings Yield (Joel Greenblatt) %

: 5.14% (As of Feb. 2023)
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Paychex's Enterprise Value for the quarter that ended in Feb. 2023 was $39,114 Mil. Paychex's EBIT for the trailing twelve months (TTM) ended in Feb. 2023 was $2,010 Mil. Paychex's Earnings Yield (Joel Greenblatt) for the quarter that ended in Feb. 2023 was 5.14%.

The historical rank and industry rank for Paychex's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

PAYX' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.43   Med: 5.57   Max: 8.08
Current: 5.09

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Paychex was 8.08%. The lowest was 3.43%. And the median was 5.57%.

PAYX's Earnings Yield (Joel Greenblatt) % is ranked worse than
51.13% of 1058 companies
in the Business Services industry
Industry Median: 5.38 vs PAYX: 5.09

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Paychex's Forward Rate of Return (Yacktman) % for the quarter that ended in Feb. 2023 was 11.81%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Paychex Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Paychex's Earnings Yield (Joel Greenblatt) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Paychex Annual Data
Trend May13 May14 May15 May16 May17 May18 May19 May20 May21 May22
Earnings Yield (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.64 4.48 5.70 4.06 4.21

Paychex Quarterly Data
May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23
Earnings Yield (Joel Greenblatt) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.28 4.21 4.33 4.39 5.14

Competitive Comparison

For the Staffing & Employment Services subindustry, Paychex's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Paychex Earnings Yield (Joel Greenblatt) % Distribution

For the Business Services industry and Industrials sector, Paychex's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Paychex's Earnings Yield (Joel Greenblatt) % falls in comparison to its industry or sector. The grey bar indicates the Earnings Yield (Joel Greenblatt) %'s extreme value range as defined by GuruFocus.



Paychex Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Paychexs Earnings Yield (Joel Greenblatt) for the fiscal year that ended in May. 2022 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=1861.2/44223.717
=4.21 %

Paychex's EBIT for the trailing twelve months (TTM) ended in Feb. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,010 Mil.



Paychex  (NAS:PAYX) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Paychex Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Paychex's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Paychex (NAS:PAYX) Business Description

Paychex logo
Industry
Traded in Other Exchanges
Address
911 Panorama Trail South, Rochester, NY, USA, 14625-2396
Paychex is a leading provider of payroll, human capital management, and insurance solutions servicing small and midsize clients primarily in the United States. The company, established in 1979, services over 730,000 clients and pays over 1 in 12 U.S. private-sector workers. Alongside its traditional payroll services, Paychex offers HCM solutions such as benefits administration and time and attendance software, as well as human resources outsourcing and insurance agency services.
Executives
Kevin A Price director 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Karen E. Saunders-mcclendon officer: VP, Chief Human Resources Offi 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Robert L. Schrader officer: VP/Controller 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Kara Wilson director C/O SUCCESSFACTORS, INC., 1500 FASHION ISLAND BLVD., SUITE 300, SAN MATEO CA 94404
Tom Bonadio director 1021 HOWARD AVE, SAN CARLOS CA 94070
John B Gibson officer: Sr. VP, Service CONVERGYS CORPORATION, 201 EAST FOURTH STREET, CINCINNATI OH 45202
Mark Anthony Bottini officer: Sr. VP of Sales 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Kevin N Hill officer: Vice President 50 WREN FIELD LN, PITTSFORD NY 114534
Michael E Gioja officer: Sr. Vice President 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Rebecca F Bernson officer: Sr. Vice President, Sales 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Efrain Rivera officer: Sr. Vice President, CFO 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Laurie L. Zaucha officer: Vice President 400 WILLOWBROOK OFFICE PARK, FAIRPORT NY 14450
Joseph Doody director CASELLA WASTE SYSTEMS INC, 25 GREENS HILL LANE PO BOX 866, RUTLAND VT 05701
Delbert M Humenik officer: Sr. Vice President 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Jennifer R. Vossler officer: VP/Controller 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625

Paychex (NAS:PAYX) Headlines