Paychex, Inc. (PAYX)

Over the past six months, Paychex stock has experienced fluctuations, including a drop in share price after missing revenue estimates. However, fiscal year 2025 results showed increases in total revenue and adjusted diluted earnings per share. The acquisition of Paycor HCM, Inc. was completed, which is expected to enhance Paychex's capabilities in HCM, payroll, and talent software.

Paychex's core business does not have significant seasonality, but the company typically experiences higher demand for new clients and services during its third fiscal quarter due to clients preferring to start services at the beginning of a calendar year. Year-end transaction processing and client funds activity are also traditionally higher during this quarter.

Paychex, Inc. is an American company offering integrated human capital management (HCM) solutions for small to medium-sized businesses (SMBs). Founded in 1971, it provides services such as automated payroll processing, HR outsourcing, employee benefits administration, and insurance services. Paychex generates revenue primarily through these HCM solutions, with over 50% coming from non-payroll services, serving approximately 800,000 clients and paying one out of every 11 American private sector workers.

Paychex, Inc. serves clients across the United States and parts of Europe, with over 100 offices in the U.S. Its business is heavily reliant on the U.S. market.

Paychex has maintained a strong brand reputation, receiving recognitions such as being named one of the World's Most Admired Companies by FORTUNE® magazine and one of America's Greatest Workplaces 2025 by Newsweek. However, some customer reviews indicate issues with customer service, including difficulties in communication and mistakes in payroll processing.

Paychex, Inc. has significant institutional ownership, with institutions holding approximately 78% of the company's shares. Major institutional owners include Vanguard Group Inc. and BlackRock, Inc. Individual ownership is around 10.55% to 11%, with B. Golisano, the founder, being the largest individual shareholder.