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Arphra AIPlain-English read on Paychex, Inc.’s valuationIncome statement
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|
| Revenue & profit | ||||||||
| Revenue | $4.06B | $4.61B | $5.01B | $5.28B | $5.57B | $6.87B | $7.24B | $7.83B |
| Cost of revenue | $1.27B | $1.36B | $1.45B | $1.48B | $1.54B | $1.94B | $2.04B | $2.17B |
| Gross profit | $2.79B | $3.26B | $3.55B | $3.8B | $4.03B | $4.91B | $5.24B | $5.52B |
| Gross margin | +68.66% | +70.59% | +70.98% | +71.97% | +72.35% | +71.53% | +72.38% | +70.53% |
| Operating | ||||||||
| Research & development | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Selling, general & administrative | $1.32B | $1.42B | $1.52B | $1.62B | $1.82B | $2.18B | $2.26B | $2.51B |
| Total operating expenses | $1.32B | $1.42B | $1.52B | $1.62B | $1.82B | $2.1B | $2.23B | $2.45B |
| Operating income | $1.46B | $1.84B | $2.03B | $2.17B | $2.21B | $2.82B | $2.87B | $3.26B |
| Operating margin | +36.01% | +39.90% | +40.60% | +41.19% | +39.62% | +41.03% | +39.64% | +41.67% |
| EBITDA | $1.65B | $2.03B | $2.21B | $2.43B | $2.49B | $3.14B | $3.32B | $3.59B |
| EBIT | $1.46B | $1.84B | $2.03B | $2.26B | $2.28B | $2.89B | $2.99B | $3.32B |
| Below the line | ||||||||
| Interest expense | $35.8M | $36.6M | $36.7M | $37.3M | $105.4M | $74.72M | $81.76M | $85.31M |
| Interest income | $2.3M | $2.9M | $49.1M | $82.7M | $72.8M | $88.87M | $90.58M | $98.21M |
| Other income / expense | -$26.5M | -$15.4M | $15.1M | $43.9M | -$31.8M | — | — | — |
| Pre-tax income | $1.43B | $1.82B | $2.05B | $2.22B | $2.18B | $2.71B | $2.95B | $3.17B |
| Income tax expense | $336.7M | $431.8M | $490.9M | $527.6M | $518.6M | $668.95M | $707.55M | $757.01M |
| Earnings | ||||||||
| Net income | $1.1B | $1.39B | $1.56B | $1.69B | $1.66B | $2.17B | $2.23B | $2.46B |
| Net income · continuing ops | $1.1B | $1.39B | $1.56B | $1.69B | $1.66B | $2.14B | $2.24B | $2.43B |
| Net margin | +27.05% | +30.20% | +31.10% | +32.03% | +29.74% | +31.63% | +30.85% | +31.42% |
| EPS · basic | $3.05 | $3.86 | $4.32 | $4.69 | $4.60 | $5.90 | $6.35 | $6.74 |
| EPS · diluted | $3.03 | $3.84 | $4.30 | $4.67 | $4.58 | $5.92 | $6.32 | $6.79 |
| EPS · low estimate | — | — | — | — | — | $5.73 | $6.00 | $6.74 |
| EPS · high estimate | — | — | — | — | — | $6.01 | $6.52 | $6.95 |
| Shares · basic | 359.9M | 360.6M | 360.4M | 360.3M | 360.2M | 360.72M | 361.23M | 362.08M |
| Shares · diluted | 362.1M | 363.1M | 362.3M | 362.1M | 362M | 359.31M | 360.61M | 359.87M |
| Coverage | ||||||||
| Analysts (revenue) | — | — | — | — | — | 14 | 12 | 1 |
| Analysts (EPS) | — | — | — | — | — | 12 | 8 | 1 |
Coverage notes. Historical figures come’s as-reported income statements / balance sheets / cash flows in our data warehouse. Forecast columns (italicised, faint accent tint) carry vendor-supplied numbers where available (revenue + EPS consensus) and ratio-derived values for every other line. Margins / ratios are the trailing-3y average from history applied to the forecast revenue; values are clamped to enforce P&L identity (gross ≥ operating, EBITDA ≥ operating, net ≤ operating) and balance-sheet identity (assets = liabilities + equity by construction). Cash-flow FCF reconciles to OCF + CapEx. USD conversion uses the period-end close of the issuer's reported/USD pair from forex_prices_daily; share counts stay unconverted.
Financials
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