110.86 USD
+0.35 (+0.32%)
PAYX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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.
1. Profitability
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.
1.2 Ratios
- PAYX's Return On Assets of 9.66% is fine compared to the rest of the industry. PAYX outperforms 78.16% of its industry peers.
- PAYX has a Return On Equity of 41.13%. This is amongst the best in the industry. PAYX outperforms 93.10% of its industry peers.
- With an excellent Return On Invested Capital value of 19.25%, PAYX belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for PAYX is significantly above the industry average of 11.85%.
- 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 has a better Profit Margin (26.45%) than 94.25% of its industry peers.
- In the last couple of years the Profit Margin of PAYX has grown nicely.
- PAYX's Operating Margin of 39.76% is amongst the best of the industry. PAYX outperforms 98.85% of its industry peers.
- PAYX's Operating Margin has improved in the last couple of years.
- PAYX has a Gross Margin of 91.14%. This is amongst the best in the industry. PAYX outperforms 98.85% 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
- 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.
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 of 3.03. This is comparable to the rest of the industry: PAYX outperforms 59.77% 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.
- PAYX has a better Debt to FCF ratio (2.53) than 70.11% of its industry peers.
- A Debt/Equity ratio of 1.18 is on the high side and indicates that PAYX has dependencies on debt financing.
- The Debt to Equity ratio of PAYX (1.18) is worse than 71.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 3.03 |
ROIC/WACC2.33
WACC8.26%
2.3 Liquidity
- A Current Ratio of 1.27 indicates that PAYX should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.27, PAYX is in line with its industry, outperforming 40.23% of the companies in the same industry.
- 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.
- Looking at the Quick ratio, with a value of 1.27, PAYX is in line with its industry, outperforming 40.23% of the companies in the same industry.
| 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.
- Looking at the last year, PAYX shows a quite strong growth in Revenue. The Revenue has grown by 12.37% in the last year.
- 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.
- 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
- PAYX is valuated rather expensively with a Price/Earnings ratio of 21.48.
- Compared to the rest of the industry, the Price/Earnings ratio of PAYX is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of PAYX to the average of the S&P500 Index (27.54), we can say PAYX is valued slightly cheaper.
- PAYX is valuated rather expensively with a Price/Forward Earnings ratio of 18.45.
- The rest of the industry has a similar Price/Forward Earnings ratio as PAYX.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. PAYX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.48 | ||
| Fwd PE | 18.45 |
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 71.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.34 | ||
| EV/EBITDA | 15.72 |
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.
- PAYX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)2
EPS Next 2Y9.85%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
- PAYX has a Yearly Dividend Yield of 3.78%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.48, 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 1.92, PAYX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
5.2 History
- On average, the dividend of PAYX grows each year by 10.17%, which is quite nice.
- 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
- 95.21% of the earnings are spent on dividend by PAYX. This is not a sustainable payout ratio.
- PAYX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP95.21%
EPS Next 2Y9.85%
EPS Next 3Y8.75%
NASDAQ:PAYX (1/16/2026, 12:17:59 PM)
110.86
+0.35 (+0.32%)
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 Change-0.1%
Ins Owners10.38%
Ins Owner Change-2.09%
Market Cap39.90B
Revenue(TTM)6.03B
Net Income(TTM)1.60B
Analysts53.91
Price Target126.29 (13.92%)
Short Float %4.56%
Short Ratio4.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
Yearly Dividend4.02
Dividend Growth(5Y)10.17%
DP95.21%
Div Incr Years11
Div Non Decr Years11
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)-6.02%
PT rev (3m)-13.17%
EPS NQ rev (1m)0.65%
EPS NQ rev (3m)0.31%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-0.17%
Revenue NQ rev (1m)-1.19%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.48 | ||
| Fwd PE | 18.45 | ||
| P/S | 6.61 | ||
| P/FCF | 20.34 | ||
| P/OCF | 17.95 | ||
| P/B | 10.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.72 |
EPS(TTM)5.16
EY4.65%
EPS(NY)6.01
Fwd EY5.42%
FCF(TTM)5.45
FCFY4.92%
OCF(TTM)6.18
OCFY5.57%
SpS16.77
BVpS10.78
TBVpS-6.83
PEG (NY)1.87
PEG (5Y)2
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 | 3.03 |
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 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 / 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 21.48 and the Price/Book (PB) ratio is 10.28.
How financially healthy is PAYCHEX INC?
The financial health rating of PAYCHEX INC (PAYX) is 5 / 10.