98.09 USD
-0.44 (-0.45%)
At close: Feb 9, 2026
98.09 USD
0 (0%)
After Hours: 2/9/2026, 5:25:47 PM
Taking everything into account, PAYX scores 6 out of 10 in our fundamental rating. 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. Finally 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.
- Each year in the past 5 years PAYX has been profitable.
- PAYX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- PAYX has a better Return On Assets (9.66%) than 79.78% of its industry peers.
- PAYX has a better Return On Equity (41.13%) than 93.26% of its industry peers.
- PAYX's Return On Invested Capital of 19.25% is amongst the best of the industry. PAYX outperforms 88.76% 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 12.01%.
- 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 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.
- The Operating Margin of PAYX (39.76%) is better than 98.88% of its industry peers.
- In the last couple of years the Operating Margin of PAYX has grown nicely.
- PAYX has a Gross Margin of 91.14%. This is amongst the best in the industry. PAYX outperforms 98.88% of its industry peers.
- PAYX's Gross Margin has been stable in the last couple of years.
| 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
- PAYX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for PAYX remains at a similar level compared to 1 year ago.
- The number of shares outstanding for PAYX has been increased compared to 5 years ago.
- The debt/assets ratio for PAYX is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.83 indicates that PAYX is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.83, PAYX is in line with its industry, outperforming 56.18% of the companies in the same industry.
- PAYX has a debt to FCF ratio of 2.53. This is a good value and a sign of high solvency as PAYX would need 2.53 years to pay back of all of its debts.
- PAYX has a Debt to FCF ratio of 2.53. This is in the better half of the industry: PAYX outperforms 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.
- The Debt to Equity ratio of PAYX (1.18) is worse than 71.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.18 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 2.83 |
ROIC/WACC2.33
WACC8.26%
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.
- Looking at the Current ratio, with a value of 1.27, PAYX is in line with its industry, outperforming 41.57% of the companies in the same industry.
- 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 in line compared to the rest of the industry. PAYX outperforms 41.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
- PAYX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.50%.
- 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.
- 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)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 quite strong growth in Revenue. The Revenue will grow by 8.20% on average per year.
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 19.01.
- Based on the Price/Earnings ratio, PAYX is valued a bit cheaper than the industry average as 62.92% of the companies are valued more expensively.
- PAYX is valuated rather cheaply when we compare the Price/Earnings ratio to 28.06, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 16.27 indicates a correct valuation of PAYX.
- The rest of the industry has a similar Price/Forward Earnings ratio as PAYX.
- PAYX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.01 | ||
| Fwd PE | 16.27 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PAYX is valued a bit cheaper than 60.67% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, PAYX is valued a bit cheaper than 69.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18 | ||
| EV/EBITDA | 14.15 |
4.3 Compensation for Growth
- The 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)1.53
PEG (5Y)1.77
EPS Next 2Y10.02%
EPS Next 3Y8.92%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.40%, PAYX is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.42, PAYX pays a better dividend. On top of this PAYX pays more dividend than 92.13% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.80, PAYX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
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 2Y10.02%
EPS Next 3Y8.92%
98.09
-0.44 (-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 Change1.76%
Ins Owners10.38%
Ins Owner Change-2.84%
Market Cap35.30B
Revenue(TTM)6.03B
Net Income(TTM)1.60B
Analysts53.91
Price Target123.9 (26.31%)
Short Float %5.33%
Short Ratio5.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
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)-1.9%
PT rev (3m)-10.19%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)0.65%
EPS NY rev (1m)0.83%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-1.41%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.01 | ||
| Fwd PE | 16.27 | ||
| P/S | 5.85 | ||
| P/FCF | 18 | ||
| P/OCF | 15.88 | ||
| P/B | 9.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.15 |
EPS(TTM)5.16
EY5.26%
EPS(NY)6.03
Fwd EY6.15%
FCF(TTM)5.45
FCFY5.56%
OCF(TTM)6.18
OCFY6.3%
SpS16.77
BVpS10.78
TBVpS-6.83
PEG (NY)1.53
PEG (5Y)1.77
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 | 2.83 |
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 Y12.44%
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 19.01 and the Price/Book (PB) ratio is 9.1.
How financially healthy is PAYCHEX INC?
The financial health rating of PAYCHEX INC (PAYX) is 4 / 10.