PAYCHEX INC (PAYX) Fundamental Analysis & Valuation

NASDAQ:PAYX • US7043261079

Current stock price

91.71 USD
+1.07 (+1.18%)
At close:
91.71 USD
0 (0%)
Pre-Market:

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

9

1. PAYX Profitability Analysis

1.1 Basic Checks

  • In the past year PAYX was profitable.
  • In the past year PAYX had a positive cash flow from operations.
  • PAYX had positive earnings in each of the past 5 years.
  • Each year in the past 5 years PAYX had a positive operating cash flow.
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

  • Looking at the Return On Assets, with a value of 9.66%, PAYX belongs to the top of the industry, outperforming 80.46% of the companies in the same industry.
  • With an excellent Return On Equity value of 41.13%, PAYX belongs to the best of the industry, outperforming 91.95% of the companies in the same industry.
  • PAYX's Return On Invested Capital of 19.25% is amongst the best of the industry. PAYX outperforms 86.21% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for PAYX is significantly above the industry average of 12.58%.
  • The 3 year average ROIC (28.05%) for PAYX is well above the current ROIC(19.25%). The reason for the recent decline needs to be investigated.
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's Profit Margin of 26.45% is amongst the best of 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 better Operating Margin (39.76%) than 97.70% of its industry peers.
  • In the last couple of years the Operating Margin of PAYX has grown nicely.
  • The Gross Margin of PAYX (91.14%) is better than 98.85% of its industry peers.
  • PAYX's Gross Margin has been stable in the last couple of years.
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

  • 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.
  • The number of shares outstanding for PAYX has been increased compared to 5 years ago.
  • Compared to 1 year ago, PAYX has a worse debt to assets ratio.
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 2.71. 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.
  • With a Altman-Z score value of 2.71, PAYX perfoms like the industry average, outperforming 54.02% of the companies in the same industry.
  • 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.
  • PAYX has a better Debt to FCF ratio (2.53) than 67.82% 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.
  • With a Debt to Equity ratio value of 1.18, PAYX is not doing good in the industry: 74.71% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.18
Debt/FCF 2.53
Altman-Z 2.71
ROIC/WACC2.33
WACC8.26%
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

  • 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 worse Current ratio (1.27) than 60.92% 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 has a worse Quick ratio (1.27) than 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.
  • PAYX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.74% yearly.
  • 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

  • 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 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

  • Based on the Price/Earnings ratio of 17.77, the valuation of PAYX can be described as rather expensive.
  • PAYX's Price/Earnings is on the same level as the industry average.
  • The average S&P500 Price/Earnings ratio is at 25.73. PAYX is valued slightly cheaper when compared to this.
  • PAYX is valuated correctly with a Price/Forward Earnings ratio of 15.22.
  • PAYX's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.72, PAYX is valued a bit cheaper.
Industry RankSector Rank
PE 17.77
Fwd PE 15.22
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 the industry average as 64.37% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 16.78
EV/EBITDA 13.22
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

  • 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)1.43
PEG (5Y)1.65
EPS Next 2Y10.01%
EPS Next 3Y8.91%

More info and screens

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

7

5. PAYX Dividend Analysis

5.1 Amount

  • PAYX has a Yearly Dividend Yield of 4.71%, which is a nice return.
  • PAYX's Dividend Yield is rather good when compared to the industry average which is at 1.72. PAYX pays more dividend than 90.80% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.91, PAYX pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.71%

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
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

  • 95.21% 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.
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

More info and screens

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PAYX Fundamentals: All Metrics, Ratios and Statistics

PAYCHEX INC

NASDAQ:PAYX (3/19/2026, 8:22:30 PM)

Premarket: 91.71 0 (0%)

91.71

+1.07 (+1.18%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)12-19
Earnings (Next)03-25
Inst Owners84.56%
Inst Owner Change4.95%
Ins Owners10.31%
Ins Owner Change-2.84%
Market Cap32.92B
Revenue(TTM)6.03B
Net Income(TTM)1.60B
Analysts53.91
Price Target123.02 (34.14%)
Short Float %6.22%
Short Ratio5.23
Dividend
Industry RankSector Rank
Dividend Yield 4.71%
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)0.44%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.44%
Valuation
Industry RankSector Rank
PE 17.77
Fwd PE 15.22
P/S 5.46
P/FCF 16.78
P/OCF 14.81
P/B 8.48
P/tB N/A
EV/EBITDA 13.22
EPS(TTM)5.16
EY5.63%
EPS(NY)6.03
Fwd EY6.57%
FCF(TTM)5.46
FCFY5.96%
OCF(TTM)6.19
OCFY6.75%
SpS16.81
BVpS10.81
TBVpS-6.85
PEG (NY)1.43
PEG (5Y)1.65
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 2.71
F-Score5
WACC8.26%
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 Y12.41%
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 Fundamental Analysis 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 17.77 and the Price/Book (PB) ratio is 8.48.


How financially healthy is PAYCHEX INC?

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