98.09 USD
-0.44 (-0.45%)
At close: Feb 9, 2026
97.8 USD
-0.29 (-0.3%)
After Hours: 2/9/2026, 8:24:28 PM
PAYX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 89 industry peers in the Professional Services industry. PAYX scores excellent on profitability, but there are some minor concerns on its financial health. PAYX has a correct valuation and a medium growth rate. Finally PAYX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- PAYX had positive earnings in the past year.
- In the past year PAYX had a positive cash flow from operations.
- In the past 5 years PAYX has always been profitable.
- Each year in the past 5 years PAYX had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 9.66%, PAYX is doing good in the industry, outperforming 79.78% of the companies in the same industry.
- PAYX has a better Return On Equity (41.13%) than 93.26% of its industry peers.
- PAYX has a better Return On Invested Capital (19.25%) than 88.76% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PAYX is significantly above the industry average of 12.01%.
- The 3 year average ROIC (28.05%) for PAYX is well above the current ROIC(19.25%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.66% | ||
| ROE | 41.13% | ||
| ROIC | 19.25% |
ROA(3y)13.68%
ROA(5y)13.48%
ROE(3y)43.07%
ROE(5y)42.31%
ROIC(3y)28.05%
ROIC(5y)28.53%
1.3 Margins
- With an excellent Profit Margin value of 26.45%, PAYX belongs to the best of the industry, outperforming 94.38% of the companies in the same industry.
- In the last couple of years the Profit Margin of PAYX has grown nicely.
- PAYX's Operating Margin of 39.76% is amongst the best of the industry. PAYX outperforms 98.88% of its industry peers.
- PAYX's Operating Margin has improved in the last couple of years.
- PAYX has a better Gross Margin (91.14%) than 98.88% of its industry peers.
- PAYX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.76% | ||
| PM (TTM) | 26.45% | ||
| GM | 91.14% |
OM growth 3Y1.57%
OM growth 5Y2.95%
PM growth 3Y-0.51%
PM growth 5Y1.82%
GM growth 3Y-0.99%
GM growth 5Y-0.7%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PAYX is creating value.
- PAYX has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, PAYX has more shares outstanding
- Compared to 1 year ago, PAYX has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.83 indicates that PAYX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.83, PAYX perfoms like the industry average, outperforming 56.18% of the companies in the same industry.
- The Debt to FCF ratio of PAYX is 2.53, which is a good value as it means it would take PAYX, 2.53 years of fcf income to pay off all of its debts.
- PAYX's Debt to FCF ratio of 2.53 is fine compared to the rest of the industry. PAYX outperforms 70.79% of its industry peers.
- A Debt/Equity ratio of 1.18 is on the high side and indicates that PAYX has dependencies on debt financing.
- PAYX's Debt to Equity ratio of 1.18 is on the low side compared to the rest of the industry. PAYX is outperformed by 71.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 2.83 |
ROIC/WACC2.33
WACC8.26%
2.3 Liquidity
- A Current Ratio of 1.27 indicates that PAYX should not have too much problems paying its short term obligations.
- PAYX has a Current ratio (1.27) which is in line with its industry peers.
- A Quick Ratio of 1.27 indicates that PAYX should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.27, PAYX perfoms like the industry average, outperforming 41.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 7.50% over the past year.
- PAYX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.74% yearly.
- The Revenue has grown by 12.37% in the past year. This is quite good.
- PAYX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.64% yearly.
EPS 1Y (TTM)7.5%
EPS 3Y9.82%
EPS 5Y10.74%
EPS Q2Q%10.53%
Revenue 1Y (TTM)12.37%
Revenue growth 3Y6.51%
Revenue growth 5Y6.64%
Sales Q2Q%18.28%
3.2 Future
- The Earnings Per Share is expected to grow by 8.20% on average over the next years. This is quite good.
- PAYX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.20% yearly.
EPS Next Y12.44%
EPS Next 2Y10.02%
EPS Next 3Y8.92%
EPS Next 5Y8.2%
Revenue Next Year16.92%
Revenue Next 2Y11.27%
Revenue Next 3Y9.48%
Revenue Next 5Y8.2%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 19.01, which indicates a rather expensive current valuation of PAYX.
- Compared to the rest of the industry, the Price/Earnings ratio of PAYX indicates a somewhat cheap valuation: PAYX is cheaper than 62.92% of the companies listed in the same industry.
- PAYX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.06.
- Based on the Price/Forward Earnings ratio of 16.27, the valuation of PAYX can be described as correct.
- The rest of the industry has a similar Price/Forward Earnings ratio as PAYX.
- The average S&P500 Price/Forward Earnings ratio is at 27.86. PAYX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.01 | ||
| Fwd PE | 16.27 |
4.2 Price Multiples
- 60.67% of the companies in the same industry are more expensive than PAYX, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, PAYX is valued a bit cheaper than 69.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18 | ||
| EV/EBITDA | 14.15 |
4.3 Compensation for Growth
- PAYX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of PAYX may justify a higher PE ratio.
PEG (NY)1.53
PEG (5Y)1.77
EPS Next 2Y10.02%
EPS Next 3Y8.92%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.40%, PAYX is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.42, PAYX pays a better dividend. On top of this PAYX pays more dividend than 92.13% of the companies listed in the same industry.
- PAYX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
5.2 History
- On average, the dividend of PAYX grows each year by 10.17%, which is quite nice.
- PAYX has paid a dividend for at least 10 years, which is a reliable track record.
- PAYX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)10.17%
Div Incr Years11
Div Non Decr Years11
5.3 Sustainability
- 95.21% of the earnings are spent on dividend by PAYX. This is not a sustainable payout ratio.
- PAYX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP95.21%
EPS Next 2Y10.02%
EPS Next 3Y8.92%
98.09
-0.44 (-0.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)12-19 2025-12-19/bmo
Earnings (Next)03-24 2026-03-24/bmo
Inst Owners81.23%
Inst Owner Change1.76%
Ins Owners10.38%
Ins Owner Change-2.84%
Market Cap35.30B
Revenue(TTM)6.03B
Net Income(TTM)1.60B
Analysts53.91
Price Target123.9 (26.31%)
Short Float %5.33%
Short Ratio5.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
Yearly Dividend4.02
Dividend Growth(5Y)10.17%
DP95.21%
Div Incr Years11
Div Non Decr Years11
Ex-Date01-28 2026-01-28 (1.08)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.15%
Min EPS beat(2)-0.85%
Max EPS beat(2)0.54%
EPS beat(4)1
Avg EPS beat(4)-0.88%
Min EPS beat(4)-1.94%
Max EPS beat(4)0.54%
EPS beat(8)2
Avg EPS beat(8)-0.69%
EPS beat(12)3
Avg EPS beat(12)-0.63%
EPS beat(16)6
Avg EPS beat(16)0.4%
Revenue beat(2)0
Avg Revenue beat(2)-2.25%
Min Revenue beat(2)-2.65%
Max Revenue beat(2)-1.85%
Revenue beat(4)0
Avg Revenue beat(4)-2.37%
Min Revenue beat(4)-2.65%
Max Revenue beat(4)-1.85%
Revenue beat(8)0
Avg Revenue beat(8)-2.26%
Revenue beat(12)0
Avg Revenue beat(12)-2.09%
Revenue beat(16)2
Avg Revenue beat(16)-1.47%
PT rev (1m)-1.9%
PT rev (3m)-10.19%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)0.65%
EPS NY rev (1m)0.83%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.01 | ||
| Fwd PE | 16.27 | ||
| P/S | 5.85 | ||
| P/FCF | 18 | ||
| P/OCF | 15.88 | ||
| P/B | 9.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.15 |
EPS(TTM)5.16
EY5.26%
EPS(NY)6.03
Fwd EY6.15%
FCF(TTM)5.45
FCFY5.56%
OCF(TTM)6.18
OCFY6.3%
SpS16.77
BVpS10.78
TBVpS-6.83
PEG (NY)1.53
PEG (5Y)1.77
Graham Number35.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.66% | ||
| ROE | 41.13% | ||
| ROCE | 25.31% | ||
| ROIC | 19.25% | ||
| ROICexc | 22.93% | ||
| ROICexgc | 111.92% | ||
| OM | 39.76% | ||
| PM (TTM) | 26.45% | ||
| GM | 91.14% | ||
| FCFM | 32.51% |
ROA(3y)13.68%
ROA(5y)13.48%
ROE(3y)43.07%
ROE(5y)42.31%
ROIC(3y)28.05%
ROIC(5y)28.53%
ROICexc(3y)39.45%
ROICexc(5y)39.54%
ROICexgc(3y)122.07%
ROICexgc(5y)118.33%
ROCE(3y)36.92%
ROCE(5y)37.54%
ROICexgc growth 3Y-2.65%
ROICexgc growth 5Y2.68%
ROICexc growth 3Y-20.58%
ROICexc growth 5Y-8.53%
OM growth 3Y1.57%
OM growth 5Y2.95%
PM growth 3Y-0.51%
PM growth 5Y1.82%
GM growth 3Y-0.99%
GM growth 5Y-0.7%
F-Score5
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 2.53 | ||
| Debt/EBITDA | 1.66 | ||
| Cap/Depr | 75.29% | ||
| Cap/Sales | 4.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.95% | ||
| Profit Quality | 122.94% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 2.83 |
F-Score5
WACC8.26%
ROIC/WACC2.33
Cap/Depr(3y)100.38%
Cap/Depr(5y)88.13%
Cap/Sales(3y)3.56%
Cap/Sales(5y)3.37%
Profit Quality(3y)100.66%
Profit Quality(5y)101.87%
High Growth Momentum
Growth
EPS 1Y (TTM)7.5%
EPS 3Y9.82%
EPS 5Y10.74%
EPS Q2Q%10.53%
EPS Next Y12.44%
EPS Next 2Y10.02%
EPS Next 3Y8.92%
EPS Next 5Y8.2%
Revenue 1Y (TTM)12.37%
Revenue growth 3Y6.51%
Revenue growth 5Y6.64%
Sales Q2Q%18.28%
Revenue Next Year16.92%
Revenue Next 2Y11.27%
Revenue Next 3Y9.48%
Revenue Next 5Y8.2%
EBIT growth 1Y6.35%
EBIT growth 3Y8.18%
EBIT growth 5Y9.79%
EBIT Next Year28.87%
EBIT Next 3Y13.71%
EBIT Next 5Y10.88%
FCF growth 1Y8.26%
FCF growth 3Y5.13%
FCF growth 5Y5.19%
OCF growth 1Y11.67%
OCF growth 3Y6.14%
OCF growth 5Y5.7%
PAYCHEX INC / PAYX FAQ
Can you provide the ChartMill fundamental rating for PAYCHEX INC?
ChartMill assigns a fundamental rating of 6 / 10 to PAYX.
What is the valuation status of PAYCHEX INC (PAYX) stock?
ChartMill assigns a valuation rating of 5 / 10 to PAYCHEX INC (PAYX). This can be considered as Fairly Valued.
What is the profitability of PAYX stock?
PAYCHEX INC (PAYX) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for PAYX stock?
The Price/Earnings (PE) ratio for PAYCHEX INC (PAYX) is 19.01 and the Price/Book (PB) ratio is 9.1.
How financially healthy is PAYCHEX INC?
The financial health rating of PAYCHEX INC (PAYX) is 4 / 10.