Forecast Of The Day: Paychex Management Solutions Revenue


What?

Paychex (NYSE:PAYX) Management Solutions Revenue rose from $2.96 billion in FY’20 to $3.44 billion in FY’22. Trefis expects the metric to grow to about $4 billion by FY’22.

Why?

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Growth over the last two years was driven by a growing base of payroll clients and a strong U.S. job market. We expect future growth to be driven by price increases and the company’s move to diversify its client base to include larger businesses.

So What?

However, we think that the expected growth is fully priced into the stock. We value PAYX at about $110 per share, which is slightly below the current market price.

See Our Complete Analysis For Paychex

What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.

Returns Jul 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 PAYX Return 0% -17% 87%
 S&P 500 Return 0% -21% 69%
 Trefis Multi-Strategy Portfolio 1% -26% 196%

[1] Month-to-date and year-to-date as of 7/1/2022
[2] Cumulative total returns since the end of 2016

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