Paychex Inc (PAYX)
Industrials · Human Resource & Employment Services · US stock · S&P 500 component
$118.81
▲ +6.31 (5.61%)
Fair valueFair
$136 +14.8% to fair value
$68fair band $116–$165$205
Day's range
$113.60 – $119.14
52-week range
$85.45 – $128.57
About Paychex Inc
Paychex provides payroll processing and human resources outsourcing services, mainly to small and mid-sized businesses in the United States. Its offerings cover payroll, benefits administration, retirement plans, insurance services and workforce management software. Revenue comes largely from recurring service fees charged per payroll run or per employee, plus interest earned on client funds held between collecting taxes and payments and passing them on to the proper recipients.
Over the last twelve months Paychex Inc reported revenue of $6.6 billion, which expanded at 9.2% a year across three years. Its operating margin is 39.2% and its return on invested capital is 27%. Leverage, measured as net debt to EBITDA, is 1.2 times. Shareholders receive a dividend, yielding 3.8%. The X-Ray Score is 69 out of 100, a summary of these measures.
Price chart
52-wk range $85.45 – $128.57Volume 3,294,107Daily, split-adjusted
Vitals
Market cap$42.4B
52-week range$85.45 – $128.57
Volume (last day)3,294,107
P/E (TTM)23.6
EBIT / EV yield5.6%
Free-cash-flow yield4.8%
Dividend yield3.8%
Revenue (TTM)$6.6B
Net income (TTM)$1.8B
Operating margin39.2%
Return on capital26.8%
Debt incl. leases$4.6B
Cash & securities$934M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$136middle half of models $126 – $153
Fair
+14.8% to fair value
Average of the 13 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Low, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $119
Undervalued < $116Fair $116 – $165Overvalued > $165
P/E multiple
$126
P/B multiple
$121
P/S multiple
$132
EV/EBITDA multiple
$132
EV/EBIT multiple
$135
EV/revenue multiple
$123
10-year DCF, EBITDA exit
$162
5-year DCF, EBITDA exit
$155
10-year DCF, revenue exit
$160
5-year DCF, revenue exit
$153
10-year DCF, growth exit
$129
5-year DCF, growth exit
$118
Dividend discount, stable · not used
$323
Dividend discount, multi-stage · not used
$483
Earnings power value
$126
Growth the price implies
10.0%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Industrials peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Strong
79/100
Cheap against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield5.6%
Free-cash-flow yield4.8%
Fair value vs price1.1×
Growth
Fair
67/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)9.2%
EPS growth (3y)4.4%
Growth consistency100%
Profitability
Strong
73/100
Earns high returns on the capital it uses.
See the numbers →
Return on invested capital26.8%
Operating margin39.2%
Gross profitability31.4%
Financial health
Fair
58/100
Balance sheet is in typical shape for its sector.
See the numbers →
Piotroski F-Score8 / 9
Net debt / EBITDA1.2×
Interest cover9.7×
Dividends
Fair
61/100
Dividend is typical for its sector.
See the numbers →
Dividend yield3.8%
Dividends vs free cash flow80%
Dividend growth10.6%
Quarterly results: last 6 quarters
+10.2%
May '25
+16.8%
Aug '25
+18.3%
Nov '25
+19.9%
Feb '26
+12.5%
May '26
+5.9%
Aug '26
Revenue against the same quarter a year earlier. Latest quarter revenue $1.6B, diluted EPS $1.21.
Compare with peers
ADP Automatic Data Process...62Other Human Resource & Employment Services companies by X-Ray Score.
SWOT analysis: Paychex Inc
Strengthsinside the company
- Return on invested capital is 26.8%, against a median of 14.9% for sector peers.
- Operating margin of 39.2% is well above the 17.5% median of sector peers, a sign of pricing power or lower costs.
- Passes 8 of the 9 Piotroski tests, which points to improving profitability, funding and efficiency.
Weaknessesinside the company
- No clear weakness in the figures we track.
Opportunitiesvaluation and setting
- Revenue growth picked up to 16.9% last year from 9.2% a year over three years.
- Trades at 23.5x earnings, 20% below the 29.3x median of sector peers.
- Price momentum is strong on the weekly and monthly signals (trends can reverse).
Threatsvaluation and setting
- No specific threat is flagged by our checks; general market and interest-rate risk still applies.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare PAYX with peers and sector
Medians of 80 Industrials peers and of 80 Industrials stocks in our universe.
Largest peers (X-Ray Score): CAT 43, GE 49, RTX 51, GEV 50, UNP 45, DE 43.
| Metric | PAYX | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 69 | 50 | 50 |
| Valuation | 79 | 44 | 44 |
| Growth | 67 | 50 | 50 |
| Profitability | 73 | 50 | 50 |
| Financial health | 58 | 49 | 49 |
| Dividends | 61 | 53 | 53 |
Sector leaders: highest X-Ray Score in Industrials
PAYX ranks #3 of 81 in Industrials by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for PAYX
Each factor is rated by where PAYX stands among the 81 Industrials stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 13 Good · 5 Average · 3 Bad of 21
Growth: 2 · 1 · 0
Profitability: 5 · 0 · 0
Financial strength: 2 · 1 · 1
Valuation: 3 · 0 · 2
Cash flow: 1 · 3 · 0
| Factor | PAYX | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +9.2% | Good beats 74% | +5.6% | – | – |
| Revenue growth, last year | +16.9% | Good beats 91% | +4.5% | +8.6% | ▲ Better |
| EPS growth, 3 years a year | +4.4% | Average beats 47% | +5.7% | – | – |
| Profitability | |||||
| Gross margin | 74.4% | Good beats 99% | 38.0% | 72.0% | ≈ In line |
| Operating margin | 39.2% | Good beats 96% | 17.5% | 39.9% | ≈ In line |
| Net margin | 27.4% | Good beats 94% | 12.8% | 29.7% | ≈ In line |
| Return on invested capital | 26.8% | Good beats 75% | 14.9% | – | – |
| Return on equity | 48.7% | Good beats 89% | 23.7% | 44.6% | ≈ In line |
| Financial strength | |||||
| Net debt / EBITDA | 1.2x | Good beats 67% | 1.8x | -0.2x | ▼ Worse |
| Interest cover | 9.7x | Bad beats 29% | 21.4x | 50.0x | ▼ Worse |
| Current ratio | 1.28 | Average beats 53% | 1.25 | 1.28 | ≈ In line |
| Piotroski F-score | 8 / 9 | Good beats 86% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 23.5x | Good beats 69% | 28.9x | 32.3x | ▲ Better |
| Price / book | 11.4x | Bad beats 25% | 6.2x | 11.4x | ≈ In line |
| Price / sales | 6.4x | Bad beats 17% | 3.5x | 8.2x | ▲ Better |
| EV / EBITDA | 15.2x | Good beats 70% | 18.5x | 18.2x | ▲ Better |
| Free cash flow yield | 4.8% | Good beats 68% | 3.8% | 4.0% | ≈ In line |
| Cash flow | |||||
| Free cash flow margin | 30.5% | Good beats 96% | 13.8% | 31.6% | ≈ In line |
| Cash from operations / net income | 1.25 | Average beats 37% | 1.39 | 1.15 | ≈ In line |
| Free cash flow growth, 3 years a year | +14.1% | Average beats 41% | +14.5% | – | – |
| Accruals (lower is better) | −2.8% | Average beats 46% | −3.2% | – | – |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 10 Good · ● 5 Average · ● 1 BadCash quality
Earnings backed by cashAverage
Free-cash-flow yieldGood
Risk models
Altman Z''Average
Piotroski F-ScoreGood
Growth
EPS growth (3y)Average
Free-cash-flow growth (3y)Average
Revenue growth (3y)Good
Growth consistencyGood
Balance sheet
Current ratioAverage
Net debt / EBITDAGood
Interest coverBad
Valuation
Fair value vs priceGood
EBIT / EV yieldGood
Profitability
Return on invested capitalGood
Operating marginGood
Gross profitabilityGood
Each check is graded against the company's sector, not a fixed number. Checklist score 67/100.
Financials
| FY22 | FY23 | FY24 | FY25 | FY26 | |
|---|---|---|---|---|---|
| Revenue | $4.6B | $5.0B | $5.3B | $5.6B | $6.5B |
| Operating income | $1.8B | $2.0B | $2.2B | $2.2B | $2.5B |
| Net income | $1.4B | $1.6B | $1,690 | $1.7B | $1.8B |
| Operating cash flow | $1.6B | $1.7B | $1.9B | $1.9B | $2.6B |
| Operating margin | 39.9% | 40.6% | 41.2% | 39.6% | 38.6% |
| Free cash flow | $1.5B | $1.6B | $1.7B | $1.7B | $2.3B |
| Diluted EPS | $3.84 | $4.30 | $4.67 | $4.58 | $4.89 |
Fiscal years, from SEC filings.
Technical summary
Daily
Strongly bullish
12 bullish · 1 neutral · 3 bearish
Weekly
Strongly bullish
10 bullish · 1 neutral · 1 bearish
Monthly
Strongly bullish
6 bullish · 1 neutral · 1 bearish
Moving averages (daily)
| SMA 10 | 110.0 | Bullish |
| EMA 10 | 110.9 | Bullish |
| SMA 20 | 105.3 | Bullish |
| EMA 20 | 109.4 | Bullish |
| SMA 50 | 114.0 | Bullish |
| EMA 50 | 110.5 | Bullish |
| SMA 100 | 110.5 | Bullish |
| EMA 100 | 109.3 | Bullish |
| SMA 200 | 102.1 | Bullish |
| EMA 200 | 108.6 | Bullish |
Oscillators (daily)
| RSI (14) | 69.67 | Neutral |
| MACD (12, 26) | 0.74 | Bullish |
| Momentum (12) | 17.61 | Bullish |
| Stochastic %K (14) | 98.40 | Bearish |
| Williams %R (14) | -1.60 | Bearish |
| CCI (20) | 166.9 | Bearish |
Pivot points (classic, last session)
S3 109.7 | S2 111.6 | S1 115.2 | Pivot 117.2 | R1 120.8 | R2 122.7 | R3 126.3 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
4.54 USD
Yield on today's price
3.82%
Frequency
Quarterly
Next ex-dividend date
26 Oct 2026
| Ex-dividend date | Amount per share |
|---|---|
| (upcoming) | 1.1900 |
| 1.1900 | |
| 1.1900 | |
| 1.0800 | |
| 1.0800 | |
| 1.0800 | |
| 1.0800 | |
| 0.9800 | |
| 0.9800 | |
| 0.9800 | |
| 0.9800 | |
| 0.8900 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold PAYX
| ETF | Share of the fund |
|---|---|
| DIVB iShares U.S. Dividend and Buyback | 2.61% |
| FTCS First Trust Capital Strength | 2.15% |
| PEY Invesco High Yield Equity Dividend Ach... | 2.09% |
| VALQ American Century STOXX U.S. Quality Va... | 1.61% |
| SPHD Invesco S&P 500 High Dividend Low Vola... | 1.45% |
| RSPN Invesco S&P 500 Equal Weight Industria... | 1.37% |
| QQQE Direxion NASDAQ-100 Equal Weighted Ind... | 1.23% |
| VFLO VictoryShares Free Cash Flow | 1.14% |
The eight funds with the largest weight in PAYX among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
PAYX stock splits
PAYX has split its stock 8 times since 1992. The latest was a 3-for-2 split on 23 May 2000.
Full PAYX stock split history →PAYX SEC filings
8-KSEC EDGAR
Shareholder vote results
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
DEF 14ASEC EDGAR
Proxy statement
8-KSEC EDGAR
Director or officer change
10-KSEC EDGAR
Annual report
8-KSEC EDGAR
Results of operations
10-QSEC EDGAR
Quarterly report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.