Paychex Inc. (PAYX) released its fourth quarter results on Sunday, June 27, 2021. The company reported net earnings of $0.73 per share for the fourth quarter ending May 31, 2021. Earnings for this past quarter were up 19 percent compared to the same period a year ago.
Paychex, Inc. was founded in 1979 and is headquartered in Rochester, New York. Paychex, Inc. provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small- to medium-sized businesses in the United States and Europe. The company offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing.
Paychex's revenue increased 0 percent over the past trailing twelve-month period versus the previous twelve-month period. Gross margins increased to 73.92% for the fourth quarter compared to the same period in the previous year, and operating margins increased to 34.38% over the same period. Net earnings for past trailing twelve months were $1097.5 million, down 0% from the prior year.
Moving on to the balance sheet, Paychex's cash levels jumped 10% for the fourth quarter over the same period last year. Overall liquidity of the balance sheet, as measured by the current ratio, increased 1.21% this past year. The current ratio for Paychex now stands at 1.25. The company increased shares outstanding by 0.28%.
Shares of PAYX are currently trading around $105.61. In terms of valuation, the stock is trading at a trailing twelve-month price to earnings ratio of 34.81 and price to book ratio of 12.99.
This article was written by Value Investing News (https://www.valueinvestingnews.com) on Monday, June 28, 2021.