Paychex (PAYX) FY2019 results: revenue $3.8 billion, up 11.6% on the year
Paychex Inc. (PAYX) reported revenue of $3.8 billion for fiscal 2019, the year ended 31 May 2019, up 11.6% on the year before. Net income was $1.0 billion, up 4.1%, and diluted earnings per share $2.86. The figures are the company's own, from the 10-K it filed with the SEC on 24 July 2019.
Revenue
$3.8 billion
+11.6% on the year
FY2012FY2019
Operating margin
36.3%
38.2% a year earlier
FY2012FY2019
Net income
$1.0 billion
+4.1% on the year
FY2012FY2019
Diluted EPS
$2.86
+4.0% on the year
FY2012FY2019
this yearthe year beforeHover a bar for its figure.
The year in brief
Income statement (profit and loss)
$ million
FY2019
FY2018
FY2017
On the year
Last 8 years
Revenue
3,772
3,381
3,151
+11.6%
Cost of revenue
1,178
1,018
n/a
+15.7%
Gross profit
2,595
2,363
n/a
+9.8%
Gross margin
68.8%
69.9%
n/a
Selling, general and administrative
1,223
1,068
980
+14.6%
Operating income
1,371
1,292
1,254
+6.2%
Operating margin
36.3%
38.2%
39.8%
Interest expense
17.6
3.9
2.5
+351.3%
Pre-tax income
1,368
1,300
1,259
+5.2%
Income tax
334
306
433
+9.0%
Effective tax rate
24.4%
23.5%
34.4%
Net income
1,034
994
826
+4.1%
Net margin
27.4%
29.4%
26.2%
Diluted EPS
$2.86
$2.75
$2.28
+4.0%
$ million except per share. Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.
Cash flow
$ million
FY2019
FY2018
FY2017
On the year
Last 8 years
Operating cash flow
1,272
1,276
960
-0.4%
Capital expenditure
124
154
94.3
-19.6%
Free cash flow
1,148
1,122
866
+2.3%
Free cash flow margin
30.4%
33.2%
27.5%
Cash from investing
-1,628
998
-662
Cash from financing
-1,008
-424
-483
Depreciation and amortisation
182
138
127
+31.5%
Share-based compensation
46.2
44.6
35.4
+3.6%
Buybacks
56.9
143
166
-60.2%
Dividends paid
827
740
662
+11.8%
Dividend per share
$2.30
$2.06
$1.84
+11.7%
Diluted shares, weighted
362m
362m
363m
+0.1%
Shares outstanding at period end
359m
359m
359m
+0.1%
Balance sheet
$ million
FY2019
FY2018
FY2017
On the year
Last 8 years
Shareholders' equity
2,620
2,357
2,227
+11.1%
Debt
796
0.0
0.0
Operating lease liabilities
13.0
n/a
n/a
Other liabilities
5,247
5,559
4,606
-5.6%
Total liabilities and equity
8,676
7,915
6,834
+9.6%
Fixed assets
409
394
337
+3.9%
Goodwill
1,783
814
657
+119.0%
Intangible assets
399
141
57.6
+182.2%
Investments
49.2
362
593
-86.4%
Cash and equivalents
674
358
185
+88.1%
Other assets
5,363
5,847
5,004
-8.3%
Total assets
8,676
7,915
6,834
+9.6%
10-K for the year ended 31 May 2019, filed 24 July 2019: the filing.