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Paychex (Paychex) Piotroski F-Score : 7 (As of Jul. 16, 2024)


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What is Paychex Piotroski F-Score?

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Paychex has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Paychex's Piotroski F-Score or its related term are showing as below:

PAYX' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 7   Max: 9
Current: 7

During the past 13 years, the highest Piotroski F-Score of Paychex was 9. The lowest was 4. And the median was 7.


Paychex Piotroski F-Score Historical Data

The historical data trend for Paychex's Piotroski F-Score 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 Piotroski F-Score Chart

Paychex Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 8.00 7.00 9.00 7.00

Paychex Quarterly Data
Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24
Piotroski F-Score Get a 7-Day Free Trial 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 9.00 7.00 8.00 8.00 7.00

Competitive Comparison of Paychex's Piotroski F-Score

For the Staffing & Employment Services subindustry, Paychex's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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's Piotroski F-Score Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Paychex's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Paychex's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (May24) TTM:Last Year (May23) TTM:
Net Income was 419.2 + 392.7 + 498.6 + 379.9 = $1,690 Mil.
Cash Flow from Operations was 655.8 + 348.5 + 671.7 + 221.7 = $1,898 Mil.
Revenue was 1286 + 1257.9 + 1439.3 + 1295.1 = $5,278 Mil.
Gross Profit was 925.8 + 893.8 + 1059.5 + 919.9 = $3,799 Mil.
Average Total Assets from the begining of this year (May23)
to the end of this year (May24) was
(10546.4 + 12200 + 12052.1 + 13023.9 + 10383.1) / 5 = $11641.1 Mil.
Total Assets at the begining of this year (May23) was $10,546 Mil.
Long-Term Debt & Capital Lease Obligation was $848 Mil.
Total Current Assets was $7,252 Mil.
Total Current Liabilities was $5,309 Mil.
Net Income was 379.2 + 360.3 + 467.4 + 350.4 = $1,557 Mil.

Revenue was 1206.2 + 1190.3 + 1381 + 1229.6 = $5,007 Mil.
Gross Profit was 855.2 + 831 + 1008.1 + 859.8 = $3,554 Mil.
Average Total Assets from the begining of last year (May22)
to the end of last year (May23) was
(9635.2 + 9125.9 + 9214.3 + 10603.6 + 10546.4) / 5 = $9825.08 Mil.
Total Assets at the begining of last year (May22) was $9,635 Mil.
Long-Term Debt & Capital Lease Obligation was $856 Mil.
Total Current Assets was $7,528 Mil.
Total Current Liabilities was $5,805 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Paychex's current Net Income (TTM) was 1,690. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Paychex's current Cash Flow from Operations (TTM) was 1,898. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (May23)
=1690.4/10546.4
=0.16028218

ROA (Last Year)=Net Income/Total Assets (May22)
=1557.3/9635.2
=0.16162612

Paychex's return on assets of this year was 0.16028218. Paychex's return on assets of last year was 0.16162612. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Paychex's current Net Income (TTM) was 1,690. Paychex's current Cash Flow from Operations (TTM) was 1,898. ==> 1,898 > 1,690 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: May24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from May23 to May24
=847.6/11641.1
=0.07281099

Gearing (Last Year: May23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from May22 to May23
=855.5/9825.08
=0.08707308

Paychex's gearing of this year was 0.07281099. Paychex's gearing of last year was 0.08707308. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: May24)=Total Current Assets/Total Current Liabilities
=7251.5/5309.1
=1.36586239

Current Ratio (Last Year: May23)=Total Current Assets/Total Current Liabilities
=7528.1/5805.4
=1.29674097

Paychex's current ratio of this year was 1.36586239. Paychex's current ratio of last year was 1.29674097. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Paychex's number of shares in issue this year was 361.8. Paychex's number of shares in issue last year was 362.3. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=3799/5278.3
=0.71973931

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3554.1/5007.1
=0.70981207

Paychex's gross margin of this year was 0.71973931. Paychex's gross margin of last year was 0.70981207. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (May23)
=5278.3/10546.4
=0.50048358

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (May22)
=5007.1/9635.2
=0.51966747

Paychex's asset turnover of this year was 0.50048358. Paychex's asset turnover of last year was 0.51966747. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+1+1+1+0
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Paychex has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

Paychex  (NAS:PAYX) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Paychex Piotroski F-Score Related Terms

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Paychex (Paychex) Business Description

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 740,000 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
Flaschen David J S director 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Christopher C Simmons officer: VP, Controller & Treasurer 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Michael E Gioja officer: Sr. Vice President 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Efrain Rivera officer: Sr. Vice President, CFO 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Martin Mucci officer: Sr. Vice President 911 PANORAMA TRAIL S, ROCHESTER NY 14625
Joseph M Tucci director EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Joseph M Velli director
Elizabeth Roaldsen officer: Sr. Vice President 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Karen E. Saunders-mcclendon officer: VP, Chief Human Resources Offi 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Theresa M. Payton director 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
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
Robert L. Schrader officer: VP/Controller 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Stephanie L Schaeffer officer: Chief Legal Officer 911 PANORAMA TRAIL SOUTH, ROCHESTER NY 14625
Joseph Doody director CASELLA WASTE SYSTEMS INC, 25 GREENS HILL LANE PO BOX 866, RUTLAND VT 05701

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