111.865 USD
-0.25 (-0.22%)
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 has a great profitability rating, 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
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.
Each year in the past 5 years PAYX had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 9.68%, PAYX is doing good in the industry, outperforming 78.16% of the companies in the same industry.
With an excellent Return On Equity value of 40.64%, PAYX belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
PAYX has a better Return On Invested Capital (18.73%) than 88.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PAYX is significantly above the industry average of 12.15%.
The last Return On Invested Capital (18.73%) 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 | 9.68% | ||
| 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
The Profit Margin of PAYX (27.86%) is better than 95.40% of its industry peers.
In the last couple of years the Profit Margin of PAYX has grown nicely.
The Operating Margin of PAYX (40.53%) is better than 98.85% of its industry peers.
In the last couple of years the Operating Margin of PAYX has grown nicely.
Looking at the Gross Margin, with a value of 90.88%, PAYX belongs to the top of the industry, outperforming 97.70% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PAYX is creating value.
PAYX has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, PAYX has more shares outstanding
PAYX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.03 indicates that PAYX is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.03, PAYX is doing good in the industry, outperforming 60.92% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 2.72, PAYX is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 1.15 is on the high side and indicates that PAYX has dependencies on debt financing.
PAYX has a Debt to Equity ratio of 1.15. This is in the lower half of the industry: PAYX underperforms 73.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 2.72 | ||
| Altman-Z | 3.03 |
ROIC/WACC2.29
WACC8.17%
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 of 1.27. This is in the lower half of the industry: PAYX underperforms 60.92% of its industry peers.
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.
PAYX has a worse Quick ratio (1.27) than 60.92% 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 6.33% over the past year.
The Earnings Per Share has been growing by 10.74% on average over the past years. This is quite good.
PAYX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.08%.
PAYX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.64% yearly.
EPS 1Y (TTM)6.33%
EPS 3Y9.82%
EPS 5Y10.74%
EPS Q2Q%5.17%
Revenue 1Y (TTM)9.08%
Revenue growth 3Y6.51%
Revenue growth 5Y6.64%
Sales Q2Q%16.8%
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.
Based on estimates for the next years, PAYX will show a quite strong growth in Revenue. The Revenue will grow by 8.19% on average per year.
EPS Next Y12.04%
EPS Next 2Y9.87%
EPS Next 3Y8.62%
EPS Next 5Y8.2%
Revenue Next Year17.42%
Revenue Next 2Y11.53%
Revenue Next 3Y9.66%
Revenue Next 5Y8.19%
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
Based on the Price/Earnings ratio of 22.20, the valuation of PAYX can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as PAYX.
When comparing the Price/Earnings ratio of PAYX to the average of the S&P500 Index (25.98), we can say PAYX is valued inline with the index average.
With a Price/Forward Earnings ratio of 18.61, PAYX is valued on the expensive side.
PAYX's Price/Forward Earnings is on the same level as the industry average.
PAYX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.2 | ||
| Fwd PE | 18.61 |
4.2 Price Multiples
PAYX's Enterprise Value to EBITDA ratio is in line with the industry average.
PAYX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PAYX is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.01 | ||
| EV/EBITDA | 16.27 |
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)1.84
PEG (5Y)2.07
EPS Next 2Y9.87%
EPS Next 3Y8.62%
5. Dividend
5.1 Amount
PAYX has a Yearly Dividend Yield of 3.98%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.43, PAYX pays a better dividend. On top of this PAYX pays more dividend than 90.80% of the companies listed in the same industry.
PAYX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
5.2 History
On average, the dividend of PAYX grows each year by 10.17%, which is quite nice.
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
5.3 Sustainability
PAYX pays out 91.97% 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.
DP91.97%
EPS Next 2Y9.87%
EPS Next 3Y8.62%
NASDAQ:PAYX (11/26/2025, 12:51:46 PM)
111.865
-0.25 (-0.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners81.52%
Inst Owner Change-1.55%
Ins Owners10.57%
Ins Owner Change-1.99%
Market Cap40.26B
Revenue(TTM)5.79B
Net Income(TTM)1.61B
Analysts53.91
Price Target137.66 (23.06%)
Short Float %4.59%
Short Ratio4.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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)-5.36%
PT rev (3m)-8.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.78%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)0.29%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.2 | ||
| Fwd PE | 18.61 | ||
| P/S | 6.95 | ||
| P/FCF | 22.01 | ||
| P/OCF | 19.42 | ||
| P/B | 10.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.27 |
EPS(TTM)5.04
EY4.51%
EPS(NY)6.01
Fwd EY5.37%
FCF(TTM)5.08
FCFY4.54%
OCF(TTM)5.76
OCFY5.15%
SpS16.1
BVpS11.03
TBVpS-6.78
PEG (NY)1.84
PEG (5Y)2.07
Graham Number35.37
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
WACC8.17%
ROIC/WACC2.29
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)6.33%
EPS 3Y9.82%
EPS 5Y10.74%
EPS Q2Q%5.17%
EPS Next Y12.04%
EPS Next 2Y9.87%
EPS Next 3Y8.62%
EPS Next 5Y8.2%
Revenue 1Y (TTM)9.08%
Revenue growth 3Y6.51%
Revenue growth 5Y6.64%
Sales Q2Q%16.8%
Revenue Next Year17.42%
Revenue Next 2Y11.53%
Revenue Next 3Y9.66%
Revenue Next 5Y8.19%
EBIT growth 1Y5.58%
EBIT growth 3Y8.18%
EBIT growth 5Y9.79%
EBIT Next Year30.45%
EBIT Next 3Y14.94%
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 5 / 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%.