PAYCHEX INC (PCX.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:PCX - US7043261079 - Common Stock
95.83 EUR
+0.43 (+0.45%)
We assign a fundamental rating of 6 out of 10 to PCX. PCX was compared to 34 industry peers in the Professional Services industry. PCX scores excellent on profitability, but there are some minor concerns on its financial health. PCX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year PCX was profitable.
- In the past year PCX had a positive cash flow from operations.
- In the past 5 years PCX has always been profitable.
- In the past 5 years PCX always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 9.66%, PCX is doing good in the industry, outperforming 79.41% of the companies in the same industry.
- PCX's Return On Equity of 41.13% is fine compared to the rest of the industry. PCX outperforms 79.41% of its industry peers.
- PCX has a better Return On Invested Capital (19.25%) than 88.24% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for PCX is significantly above the industry average of 11.54%.
- The 3 year average ROIC (28.05%) for PCX 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
- PCX has a Profit Margin of 26.45%. This is amongst the best in the industry. PCX outperforms 100.00% of its industry peers.
- PCX's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 39.76%, PCX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- PCX's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 91.14%, PCX is doing good in the industry, outperforming 79.41% of the companies in the same industry.
- In the last couple of years the Gross Margin of PCX 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PCX is creating value.
- The number of shares outstanding for PCX remains at a similar level compared to 1 year ago.
- The number of shares outstanding for PCX has been increased compared to 5 years ago.
- Compared to 1 year ago, PCX has a worse debt to assets ratio.
2.2 Solvency
- PCX has an Altman-Z score of 3.05. This indicates that PCX is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of PCX (3.05) is better than 67.65% of its industry peers.
- PCX has a debt to FCF ratio of 2.53. This is a good value and a sign of high solvency as PCX would need 2.53 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 2.53, PCX belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
- A Debt/Equity ratio of 1.18 is on the high side and indicates that PCX has dependencies on debt financing.
- PCX's Debt to Equity ratio of 1.18 is in line compared to the rest of the industry. PCX outperforms 41.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 3.05 |
ROIC/WACC2.35
WACC8.19%
2.3 Liquidity
- A Current Ratio of 1.27 indicates that PCX should not have too much problems paying its short term obligations.
- PCX has a Current ratio of 1.27. This is in the better half of the industry: PCX outperforms 67.65% of its industry peers.
- A Quick Ratio of 1.27 indicates that PCX should not have too much problems paying its short term obligations.
- PCX has a Quick ratio of 1.27. This is in the better half of the industry: PCX outperforms 70.59% of its industry peers.
| 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.
- Measured over the past years, PCX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.74% on average per year.
- The Revenue has grown by 12.37% in the past year. This is quite good.
- 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
- Based on estimates for the next years, PCX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.20% on average per year.
- The Revenue is expected to grow by 8.20% on average over the next years. This is quite good.
EPS Next Y11.52%
EPS Next 2Y9.85%
EPS Next 3Y8.75%
EPS Next 5Y8.2%
Revenue Next Year17.22%
Revenue Next 2Y11.48%
Revenue Next 3Y9.58%
Revenue Next 5Y8.2%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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
- PCX is valuated rather expensively with a Price/Earnings ratio of 21.58.
- PCX's Price/Earnings ratio is a bit cheaper when compared to the industry. PCX is cheaper than 70.59% of the companies in the same industry.
- When comparing the Price/Earnings ratio of PCX to the average of the S&P500 Index (27.54), we can say PCX is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 18.54, the valuation of PCX can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PCX is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. PCX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.58 | ||
| Fwd PE | 18.54 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PCX is on the same level as its industry peers.
- PCX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.44 | ||
| EV/EBITDA | 15.83 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PCX does not grow enough to justify the current Price/Earnings ratio.
- PCX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)2.01
EPS Next 2Y9.85%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.78%, PCX has a reasonable but not impressive dividend return.
- PCX's Dividend Yield is rather good when compared to the industry average which is at 2.44. PCX pays more dividend than 82.35% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.92, PCX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
5.2 History
- On average, the dividend of PCX grows each year by 10.17%, which is quite nice.
Dividend Growth(5Y)10.17%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- PCX pays out 95.21% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of PCX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP95.21%
EPS Next 2Y9.85%
EPS Next 3Y8.75%
FRA:PCX (1/13/2026, 7:00:00 PM)
95.83
+0.43 (+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 ChangeN/A
Ins Owners10.38%
Ins Owner ChangeN/A
Market Cap34.49B
Revenue(TTM)6.03B
Net Income(TTM)1.60B
Analysts53.91
Price Target108.33 (13.04%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
Yearly Dividend3.45
Dividend Growth(5Y)10.17%
DP95.21%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-6.71%
PT rev (3m)-6.71%
EPS NQ rev (1m)0.65%
EPS NQ rev (3m)8.59%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)1.98%
Revenue NQ rev (1m)-1.19%
Revenue NQ rev (3m)7.93%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)9.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.58 | ||
| Fwd PE | 18.54 | ||
| P/S | 6.64 | ||
| P/FCF | 20.44 | ||
| P/OCF | 18.03 | ||
| P/B | 10.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.83 |
EPS(TTM)4.44
EY4.63%
EPS(NY)5.17
Fwd EY5.39%
FCF(TTM)4.69
FCFY4.89%
OCF(TTM)5.31
OCFY5.55%
SpS14.42
BVpS9.28
TBVpS-5.88
PEG (NY)1.87
PEG (5Y)2.01
Graham Number30.44
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 | 3.05 |
F-Score5
WACC8.19%
ROIC/WACC2.35
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 Y11.52%
EPS Next 2Y9.85%
EPS Next 3Y8.75%
EPS Next 5Y8.2%
Revenue 1Y (TTM)12.37%
Revenue growth 3Y6.51%
Revenue growth 5Y6.64%
Sales Q2Q%18.28%
Revenue Next Year17.22%
Revenue Next 2Y11.48%
Revenue Next 3Y9.58%
Revenue Next 5Y8.2%
EBIT growth 1Y6.35%
EBIT growth 3Y8.18%
EBIT growth 5Y9.79%
EBIT Next Year28.58%
EBIT Next 3Y13.78%
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 / PCX.DE FAQ
What is the fundamental rating for PCX stock?
ChartMill assigns a fundamental rating of 6 / 10 to PCX.DE.
Can you provide the valuation status for PAYCHEX INC?
ChartMill assigns a valuation rating of 4 / 10 to PAYCHEX INC (PCX.DE). This can be considered as Fairly Valued.
What is the profitability of PCX stock?
PAYCHEX INC (PCX.DE) has a profitability rating of 9 / 10.
How financially healthy is PAYCHEX INC?
The financial health rating of PAYCHEX INC (PCX.DE) is 6 / 10.
What is the earnings growth outlook for PAYCHEX INC?
The Earnings per Share (EPS) of PAYCHEX INC (PCX.DE) is expected to grow by 11.52% in the next year.