PAYCHEX INC (PAYX) Fundamental Analysis & Valuation

NASDAQ:PAYX • US7043261079

94.22 USD
-0.9 (-0.95%)
Last: Mar 11, 2026, 01:11 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This PAYX fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

Overall PAYX gets a fundamental rating of 6 out of 10. We evaluated PAYX against 87 industry peers in the Professional Services industry. While PAYX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PAYX has a decent growth rate and is not valued too expensively. PAYX also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

9

1. PAYX Profitability Analysis

1.1 Basic Checks

  • PAYX had positive earnings in the past year.
  • PAYX had a positive operating cash flow in the past year.
  • Each year in the past 5 years PAYX has been profitable.
  • In the past 5 years PAYX always reported a positive cash flow from operatings.
PAYX Yearly Net Income VS EBIT VS OCF VS FCFPAYX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

1.2 Ratios

  • With an excellent Return On Assets value of 9.66%, PAYX belongs to the best of the industry, outperforming 80.46% of the companies in the same industry.
  • The Return On Equity of PAYX (41.13%) is better than 91.95% of its industry peers.
  • PAYX's Return On Invested Capital of 19.25% is amongst the best of the industry. PAYX outperforms 86.21% 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 12.78%.
  • 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 RankSector 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%
PAYX Yearly ROA, ROE, ROICPAYX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

1.3 Margins

  • PAYX has a Profit Margin of 26.45%. This is amongst the best in the industry. PAYX outperforms 94.25% of its industry peers.
  • PAYX's Profit Margin has improved in the last couple of years.
  • PAYX has a Operating Margin of 39.76%. This is amongst the best in the industry. PAYX outperforms 97.70% of its industry peers.
  • In the last couple of years the Operating Margin of PAYX has grown nicely.
  • With an excellent Gross Margin value of 91.14%, PAYX belongs to the best of the industry, outperforming 98.85% of the companies in the same industry.
  • In the last couple of years the Gross Margin of PAYX has remained more or less at the same level.
Industry RankSector 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%
PAYX Yearly Profit, Operating, Gross MarginsPAYX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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4

2. PAYX Health Analysis

2.1 Basic Checks

  • PAYX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • Compared to 1 year ago, PAYX has about the same amount of shares outstanding.
  • The number of shares outstanding for PAYX has been increased compared to 5 years ago.
  • The debt/assets ratio for PAYX is higher compared to a year ago.
PAYX Yearly Shares OutstandingPAYX Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
PAYX Yearly Total Debt VS Total AssetsPAYX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • PAYX has an Altman-Z score of 2.77. This is not the best score and indicates that PAYX is in the grey zone with still only limited risk for bankruptcy at the moment.
  • PAYX has a Altman-Z score (2.77) which 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.
  • With a decent Debt to FCF ratio value of 2.53, PAYX is doing good in the industry, outperforming 67.82% of the companies in the same industry.
  • PAYX has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external 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 74.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.18
Debt/FCF 2.53
Altman-Z 2.77
ROIC/WACC2.36
WACC8.15%
PAYX Yearly LT Debt VS Equity VS FCFPAYX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

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 worse Current ratio (1.27) than 60.92% of its industry peers.
  • PAYX has a Quick Ratio of 1.27. This is a normal value and indicates that PAYX is financially healthy and should not expect problems in meeting its short term obligations.
  • PAYX's Quick ratio of 1.27 is on the low side compared to the rest of the industry. PAYX is outperformed by 60.92% of its industry peers.
Industry RankSector Rank
Current Ratio 1.27
Quick Ratio 1.27
PAYX Yearly Current Assets VS Current LiabilitesPAYX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. PAYX Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 7.50% over the past year.
  • Measured over the past years, PAYX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.74% on average per year.
  • Looking at the last year, PAYX shows a quite strong growth in Revenue. The Revenue has grown by 12.37% in the last year.
  • The Revenue has been growing slightly by 6.64% on average over the past years.
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.
  • Based on estimates for the next years, PAYX will show a small growth in Revenue. The Revenue will grow by 7.57% on average per year.
EPS Next Y12.41%
EPS Next 2Y10.01%
EPS Next 3Y8.91%
EPS Next 5Y8.2%
Revenue Next Year16.9%
Revenue Next 2Y11.26%
Revenue Next 3Y9.47%
Revenue Next 5Y7.57%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
PAYX Yearly Revenue VS EstimatesPAYX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B
PAYX Yearly EPS VS EstimatesPAYX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2 4 6

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4

4. PAYX Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 18.26, which indicates a rather expensive current valuation of PAYX.
  • PAYX's Price/Earnings ratio is in line with the industry average.
  • PAYX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.25.
  • With a Price/Forward Earnings ratio of 15.63, PAYX is valued correctly.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of PAYX is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.39, PAYX is valued a bit cheaper.
Industry RankSector Rank
PE 18.26
Fwd PE 15.63
PAYX Price Earnings VS Forward Price EarningsPAYX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as PAYX.
  • Based on the Price/Free Cash Flow ratio, PAYX is valued a bit cheaper than 64.37% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.24
EV/EBITDA 13.67
PAYX Per share dataPAYX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 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)1.47
PEG (5Y)1.7
EPS Next 2Y10.01%
EPS Next 3Y8.91%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. PAYX Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.39%, PAYX is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 1.65, PAYX pays a better dividend. On top of this PAYX pays more dividend than 90.80% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, PAYX pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.39%

5.2 History

  • The dividend of PAYX is nicely growing with an annual growth rate of 10.17%!
  • PAYX has paid a dividend for at least 10 years, which is 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
PAYX Yearly Dividends per sharePAYX Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3 4

5.3 Sustainability

  • PAYX pays out 95.21% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of PAYX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP95.21%
EPS Next 2Y10.01%
EPS Next 3Y8.91%
PAYX Yearly Income VS Free CF VS DividendPAYX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
PAYX Dividend Payout.PAYX Dividend Payout, showing the Payout Ratio.PAYX Dividend Payout.PayoutRetained Earnings

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PAYX Fundamentals: All Metrics, Ratios and Statistics

PAYCHEX INC

NASDAQ:PAYX (3/11/2026, 1:11:09 PM)

94.22

-0.9 (-0.95%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)12-19
Earnings (Next)04-01
Inst Owners84.56%
Inst Owner Change4.95%
Ins Owners10.31%
Ins Owner Change-2.84%
Market Cap33.82B
Revenue(TTM)6.03B
Net Income(TTM)1.60B
Analysts53.91
Price Target123.02 (30.57%)
Short Float %6.25%
Short Ratio5.21
Dividend
Industry RankSector Rank
Dividend Yield 4.39%
Yearly Dividend4.02
Dividend Growth(5Y)10.17%
DP95.21%
Div Incr Years11
Div Non Decr Years11
Ex-Date01-28
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)-0.71%
PT rev (3m)-8.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.61%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.46%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.44%
Valuation
Industry RankSector Rank
PE 18.26
Fwd PE 15.63
P/S 5.61
P/FCF 17.24
P/OCF 15.21
P/B 8.72
P/tB N/A
EV/EBITDA 13.67
EPS(TTM)5.16
EY5.48%
EPS(NY)6.03
Fwd EY6.4%
FCF(TTM)5.46
FCFY5.8%
OCF(TTM)6.19
OCFY6.57%
SpS16.81
BVpS10.81
TBVpS-6.85
PEG (NY)1.47
PEG (5Y)1.7
Graham Number35.42
Profitability
Industry RankSector 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 RankSector 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 2.77
F-Score5
WACC8.15%
ROIC/WACC2.36
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 Y12.41%
EPS Next 2Y10.01%
EPS Next 3Y8.91%
EPS Next 5Y8.2%
Revenue 1Y (TTM)12.37%
Revenue growth 3Y6.51%
Revenue growth 5Y6.64%
Sales Q2Q%18.28%
Revenue Next Year16.9%
Revenue Next 2Y11.26%
Revenue Next 3Y9.47%
Revenue Next 5Y7.57%
EBIT growth 1Y6.35%
EBIT growth 3Y8.18%
EBIT growth 5Y9.79%
EBIT Next Year28.83%
EBIT Next 3Y13.69%
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 4 / 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 18.26 and the Price/Book (PB) ratio is 8.72.


How financially healthy is PAYCHEX INC?

The financial health rating of PAYCHEX INC (PAYX) is 4 / 10.