98.53 USD
+0.36 (+0.37%)
At close: Feb 6, 2026
98.39 USD
-0.14 (-0.14%)
After Hours: 2/6/2026, 8:00:02 PM
Overall PAYX gets a fundamental rating of 6 out of 10. We evaluated PAYX against 89 industry peers in the Professional Services industry. While PAYX has a great profitability rating, there are some minor concerns on its financial health. PAYX is not valued too expensively and it also shows a decent growth rate. PAYX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- PAYX had positive earnings in the past year.
- PAYX had a positive operating cash flow in the past year.
- PAYX had positive earnings in each of the past 5 years.
- PAYX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 9.66%, PAYX is in the better half of the industry, outperforming 79.78% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 41.13%, PAYX belongs to the top of the industry, outperforming 93.26% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 19.25%, PAYX belongs to the best of the industry, outperforming 88.76% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for PAYX is significantly above the industry average of 12.01%.
- The last Return On Invested Capital (19.25%) for PAYX is well below the 3 year average (28.05%), which needs to be investigated, but indicates that PAYX had better years and this may not be a problem.
| 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
- The Profit Margin of PAYX (26.45%) is better than 94.38% of its industry peers.
- PAYX's Profit Margin has improved in the last couple of years.
- PAYX has a better Operating Margin (39.76%) than 98.88% of its industry peers.
- PAYX's Operating Margin has improved in the last couple of years.
- PAYX has a Gross Margin of 91.14%. This is amongst the best in the industry. PAYX outperforms 98.88% of its industry peers.
- In the last couple of years the Gross Margin of PAYX has remained more or less at the same level.
| 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.
- Compared to 1 year ago, PAYX has about the same amount of shares outstanding.
- PAYX has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for PAYX is higher compared to a year ago.
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.
- The Altman-Z score of PAYX (2.83) is comparable to the rest of the industry.
- PAYX has a debt to FCF ratio of 2.53. This is a good value and a sign of high solvency as PAYX would need 2.53 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.53, PAYX is in the better half of the industry, outperforming 70.79% of the companies in the same industry.
- 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
WACC8.27%
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.
- The Quick ratio of PAYX (1.27) is comparable to the rest of the 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.
- Measured over the past years, PAYX shows a small growth in Revenue. The Revenue has been growing by 6.64% on average per year.
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
- PAYX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.20% yearly.
- The Revenue is expected to grow by 8.20% on average over the next years. This is quite good.
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 19.09, PAYX is valued on the expensive side.
- Based on the Price/Earnings ratio, PAYX is valued a bit cheaper than the industry average as 62.92% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.93, PAYX is valued a bit cheaper.
- A Price/Forward Earnings ratio of 16.34 indicates a correct valuation of PAYX.
- PAYX's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 27.77. PAYX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 16.34 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PAYX is valued a bit cheaper than 60.67% of the companies in the same industry.
- 69.66% of the companies in the same industry are more expensive than PAYX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.08 | ||
| EV/EBITDA | 14.15 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- PAYX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.54
PEG (5Y)1.78
EPS Next 2Y10.02%
EPS Next 3Y8.92%
5. Dividend
5.1 Amount
- PAYX has a Yearly Dividend Yield of 4.40%, which is a nice return.
- PAYX's Dividend Yield is rather good when compared to the industry average which is at 1.43. PAYX pays more dividend than 92.13% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, PAYX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
5.2 History
- The dividend of PAYX is nicely growing with an annual growth rate of 10.17%!
- PAYX has been paying a dividend for at least 10 years, so it has a reliable track record.
- PAYX has not decreased their dividend for at least 10 years, which is a reliable track record.
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%
98.53
+0.36 (+0.37%)
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 Cap35.46B
Revenue(TTM)6.03B
Net Income(TTM)1.60B
Analysts53.91
Price Target123.9 (25.75%)
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 | 19.09 | ||
| Fwd PE | 16.34 | ||
| P/S | 5.88 | ||
| P/FCF | 18.08 | ||
| P/OCF | 15.95 | ||
| P/B | 9.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.15 |
EPS(TTM)5.16
EY5.24%
EPS(NY)6.03
Fwd EY6.12%
FCF(TTM)5.45
FCFY5.53%
OCF(TTM)6.18
OCFY6.27%
SpS16.77
BVpS10.78
TBVpS-6.83
PEG (NY)1.54
PEG (5Y)1.78
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
WACC8.27%
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 19.09 and the Price/Book (PB) ratio is 9.14.
How financially healthy is PAYCHEX INC?
The financial health rating of PAYCHEX INC (PAYX) is 4 / 10.