98.565 USD
-3.91 (-3.81%)
Last: Feb 3, 2026, 11:18 AM
We assign a fundamental rating of 6 out of 10 to PAYX. PAYX was compared to 89 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 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
- 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.
- PAYX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- PAYX's Return On Assets of 9.66% is fine compared to the rest of the industry. PAYX outperforms 78.65% of its industry peers.
- PAYX has a Return On Equity of 41.13%. This is amongst the best in the industry. PAYX outperforms 93.26% of its industry peers.
- PAYX has a Return On Invested Capital of 19.25%. This is amongst the best in the industry. PAYX outperforms 89.89% 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 12.02%.
- 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
- PAYX's Profit Margin of 26.45% is amongst the best of the industry. PAYX outperforms 94.38% of its industry peers.
- PAYX's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 39.76%, PAYX belongs to the top of the industry, outperforming 98.88% of the companies in the same industry.
- 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.
- 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
- 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 2.90. 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's Altman-Z score of 2.90 is in line compared to the rest of the industry. PAYX outperforms 57.30% of its industry peers.
- 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.
- The Debt to FCF ratio of PAYX (2.53) is better than 70.79% of its industry peers.
- PAYX has a Debt/Equity ratio of 1.18. This is a high value indicating a heavy dependency on external financing.
- PAYX has a Debt to Equity ratio of 1.18. This is in the lower half of the industry: PAYX underperforms 71.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 2.9 |
ROIC/WACC2.31
WACC8.32%
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 comparable to the rest of the industry.
- A Quick Ratio of 1.27 indicates that PAYX should not have too much problems paying its short term obligations.
- PAYX has a Quick ratio (1.27) which is in line with 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, PAYX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.74% on average per year.
- PAYX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.37%.
- 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
- 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- PAYX is valuated rather expensively with a Price/Earnings ratio of 19.10.
- 64.04% of the companies in the same industry are more expensive than PAYX, based on the Price/Earnings ratio.
- PAYX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.41.
- Based on the Price/Forward Earnings ratio of 16.35, the valuation of PAYX can be described as correct.
- 62.92% of the companies in the same industry are more expensive than PAYX, based on the Price/Forward Earnings ratio.
- PAYX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.1 | ||
| Fwd PE | 16.35 |
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 the industry average as 70.79% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.08 | ||
| EV/EBITDA | 14.66 |
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)1.54
PEG (5Y)1.78
EPS Next 2Y10.02%
EPS Next 3Y8.92%
5. Dividend
5.1 Amount
- PAYX has a Yearly Dividend Yield of 4.23%, which is a nice return.
- PAYX's Dividend Yield is rather good when compared to the industry average which is at 1.45. PAYX pays more dividend than 91.01% of the companies in the same industry.
- PAYX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
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
- 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 2Y10.02%
EPS Next 3Y8.92%
NASDAQ:PAYX (2/3/2026, 11:18:09 AM)
98.565
-3.91 (-3.81%)
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 Change1.44%
Ins Owners10.38%
Ins Owner Change-2.77%
Market Cap35.47B
Revenue(TTM)6.03B
Net Income(TTM)1.60B
Analysts53.91
Price Target124.63 (26.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
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)-1.32%
PT rev (3m)-9.66%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)0.65%
EPS NY rev (1m)0.83%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.1 | ||
| Fwd PE | 16.35 | ||
| P/S | 5.88 | ||
| P/FCF | 18.08 | ||
| P/OCF | 15.96 | ||
| P/B | 9.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.66 |
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 | 2.9 |
F-Score5
WACC8.32%
ROIC/WACC2.31
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 19.1 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.