Why Paychex’s HR Outsourcing & Services Business Can Be Key To Its Long Term Growth

As shown in the table below, Paychex’s HR outsourcing and services segment is likely to outpace the growth in its core payroll processing business. Over the last few years, Paychex has witnessed 12-13% growth in HR Outsourcing and Services revenues over the last few years. As a result, the contribution of HR Outsourcing and Services to the company’s top line has increased from 27% in 2010 to 38% in 2015. Paychex’s comprehensive scope of services – including include health and welfare benefits services, compliance services, 401k retirement savings plans and worker insurance services for small and medium enterprises – has helped its HR Outsourcing & Services division grow rapidly. We expect the HR Outsourcing and Services to continue to grow, albeit at a slower pace compared to the last few years.

Have more questions about Paychex (NASDAQ:PAYX) ? See the links below:

• What’s Paychex’s Fundamental Value Based On Expected 2016 Results?
• What’s Paychex’s Revenue & Earnings Composition?
• How Has Paychex’s Revenue & EBITDA Composition Changed In The Last Five Years?
• Where Will Paychex’s Revenue Growth Come From In The Next Five Years?

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