114.645 USD
+2.36 (+2.11%)
Taking everything into account, PAYX scores 6 out of 10 in our fundamental rating. PAYX was compared to 86 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PAYX was profitable.
In the past year PAYX had a positive cash flow from operations.
In the past 5 years PAYX has always been profitable.
In the past 5 years PAYX always reported a positive cash flow from operatings.
1.2 Ratios
PAYX's Return On Assets of 9.68% is fine compared to the rest of the industry. PAYX outperforms 77.91% of its industry peers.
PAYX's Return On Equity of 40.64% is amongst the best of the industry. PAYX outperforms 93.02% of its industry peers.
PAYX has a Return On Invested Capital of 18.73%. This is amongst the best in the industry. PAYX outperforms 88.37% of its industry peers.
PAYX had an Average Return On Invested Capital over the past 3 years of 28.05%. This is significantly above the industry average of 12.03%.
The 3 year average ROIC (28.05%) for PAYX is well above the current ROIC(18.73%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.68% | ||
| ROE | 40.64% | ||
| ROIC | 18.73% |
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
PAYX's Profit Margin of 27.86% is amongst the best of the industry. PAYX outperforms 95.35% of its industry peers.
PAYX's Profit Margin has improved in the last couple of years.
PAYX has a Operating Margin of 40.53%. This is amongst the best in the industry. PAYX outperforms 98.84% of its industry peers.
In the last couple of years the Operating Margin of PAYX has grown nicely.
PAYX's Gross Margin of 90.88% is amongst the best of the industry. PAYX outperforms 97.67% of its industry peers.
PAYX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.53% | ||
| PM (TTM) | 27.86% | ||
| GM | 90.88% |
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 PAYX is creating value.
PAYX has about the same amout of shares outstanding than it did 1 year ago.
PAYX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PAYX has a worse debt to assets ratio.
2.2 Solvency
PAYX has an Altman-Z score of 3.03. This indicates that PAYX is financially healthy and has little risk of bankruptcy at the moment.
PAYX has a Altman-Z score (3.03) which is in line with its industry peers.
PAYX has a debt to FCF ratio of 2.72. This is a good value and a sign of high solvency as PAYX would need 2.72 years to pay back of all of its debts.
PAYX has a Debt to FCF ratio of 2.72. This is in the better half of the industry: PAYX outperforms 69.77% of its industry peers.
PAYX has a Debt/Equity ratio of 1.15. This is a high value indicating a heavy dependency on external financing.
PAYX has a worse Debt to Equity ratio (1.15) than 72.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 2.72 | ||
| Altman-Z | 3.03 |
ROIC/WACC2.26
WACC8.28%
2.3 Liquidity
PAYX has a Current 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 has a Current ratio of 1.27. This is in the lower half of the industry: PAYX underperforms 60.47% of its industry peers.
A Quick Ratio of 1.27 indicates that PAYX should not have too much problems paying 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 60.47% 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.
The Earnings Per Share has been growing by 10.74% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.56% in the past year.
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)5.56%
Revenue growth 3Y6.51%
Revenue growth 5Y6.64%
Sales Q2Q%18.28%
3.2 Future
Based on estimates for the next years, PAYX 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 8.19% 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 5Y8.19%
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
With a Price/Earnings ratio of 22.22, PAYX is valued on the expensive side.
PAYX's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.39. PAYX is around the same levels.
Based on the Price/Forward Earnings ratio of 19.08, the valuation of PAYX can be described as rather expensive.
PAYX's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of PAYX to the average of the S&P500 Index (23.84), we can say PAYX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.22 | ||
| Fwd PE | 19.08 |
4.2 Price Multiples
PAYX's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, PAYX is valued a bit cheaper than the industry average as 68.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.56 | ||
| EV/EBITDA | 16.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PAYX does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of PAYX may justify a higher PE ratio.
PEG (NY)1.93
PEG (5Y)2.07
EPS Next 2Y9.85%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.85%, PAYX has a reasonable but not impressive dividend return.
PAYX's Dividend Yield is rather good when compared to the industry average which is at 1.52. PAYX pays more dividend than 90.70% of the companies in the same industry.
PAYX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
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
5.3 Sustainability
91.97% of the earnings are spent on dividend by PAYX. 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.
DP91.97%
EPS Next 2Y9.85%
EPS Next 3Y8.75%
NASDAQ:PAYX (12/22/2025, 10:21:13 AM)
114.645
+2.36 (+2.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners80.87%
Inst Owner Change-1.3%
Ins Owners10.36%
Ins Owner Change-1.99%
Market Cap41.26B
Revenue(TTM)5.57B
Net Income(TTM)1.61B
Analysts53.91
Price Target126.29 (10.16%)
Short Float %4.84%
Short Ratio5.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.85% |
Yearly Dividend4.02
Dividend Growth(5Y)10.17%
DP91.97%
Div Incr Years11
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.39%
Min EPS beat(2)-1.94%
Max EPS beat(2)-0.85%
EPS beat(4)0
Avg EPS beat(4)-1.16%
Min EPS beat(4)-1.94%
Max EPS beat(4)-0.58%
EPS beat(8)1
Avg EPS beat(8)-0.93%
EPS beat(12)3
Avg EPS beat(12)-0.49%
EPS beat(16)6
Avg EPS beat(16)1.1%
Revenue beat(2)0
Avg Revenue beat(2)-2.18%
Min Revenue beat(2)-2.51%
Max Revenue beat(2)-1.85%
Revenue beat(4)0
Avg Revenue beat(4)-2.12%
Min Revenue beat(4)-2.51%
Max Revenue beat(4)-1.65%
Revenue beat(8)0
Avg Revenue beat(8)-2.29%
Revenue beat(12)0
Avg Revenue beat(12)-2.02%
Revenue beat(16)3
Avg Revenue beat(16)-1.16%
PT rev (1m)-2.59%
PT rev (3m)-9.91%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-1.8%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.22 | ||
| Fwd PE | 19.08 | ||
| P/S | 7.12 | ||
| P/FCF | 22.56 | ||
| P/OCF | 19.9 | ||
| P/B | 10.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.3 |
EPS(TTM)5.16
EY4.5%
EPS(NY)6.01
Fwd EY5.24%
FCF(TTM)5.08
FCFY4.43%
OCF(TTM)5.76
OCFY5.02%
SpS16.1
BVpS11.03
TBVpS-6.78
PEG (NY)1.93
PEG (5Y)2.07
Graham Number35.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.68% | ||
| ROE | 40.64% | ||
| ROCE | 24.63% | ||
| ROIC | 18.73% | ||
| ROICexc | 22.7% | ||
| ROICexgc | 121.58% | ||
| OM | 40.53% | ||
| PM (TTM) | 27.86% | ||
| GM | 90.88% | ||
| FCFM | 31.57% |
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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 2.72 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 87.31% | ||
| Cap/Sales | 4.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.89% | ||
| Profit Quality | 113.34% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 3.03 |
F-Score5
WACC8.28%
ROIC/WACC2.26
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)5.56%
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 5Y8.19%
EBIT growth 1Y5.58%
EBIT growth 3Y8.18%
EBIT growth 5Y9.79%
EBIT Next Year31.99%
EBIT Next 3Y15.39%
EBIT Next 5Y10.89%
FCF growth 1Y-2.33%
FCF growth 3Y5.13%
FCF growth 5Y5.19%
OCF growth 1Y1.88%
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 for PAYX stock?
ChartMill assigns a valuation rating of 4 / 10 to PAYCHEX INC (PAYX). This can be considered as Fairly Valued.
How profitable is PAYCHEX INC (PAYX) stock?
PAYCHEX INC (PAYX) has a profitability rating of 9 / 10.
What is the financial health of PAYCHEX INC (PAYX) stock?
The financial health rating of PAYCHEX INC (PAYX) is 4 / 10.
How sustainable is the dividend of PAYCHEX INC (PAYX) stock?
The dividend rating of PAYCHEX INC (PAYX) is 6 / 10 and the dividend payout ratio is 91.97%.