(PAYX) Paychex - Overview

Sector: Technology | Industry: Software - Application | Exchange: NASDAQ (USA) | Market Cap: 30.659m USD | Total Return: -40.6% in 12m

Payroll, Benefits, Human Resources, Insurance
Total Rating 47
Safety 60
Buy Signal -1.21
Software - Application
Industry Rotation: -32.2
Market Cap: 30.7B
Avg Turnover: 352M USD
ATR: 3.23%
Peers RS (IBD): 43.3
Risk 5d forecast
Volatility26.3%
Rel. Tail Risk-3.44%
Reward TTM
Sharpe Ratio-2.10
Alpha-53.72
Character TTM
Beta0.413
Beta Downside0.586
Drawdowns 3y
Max DD44.95%
CAGR/Max DD-0.10
EPS (Earnings per Share) EPS (Earnings per Share) of PAYX over the last years for every Quarter: "2021-02": 0.96, "2021-05": 0.72, "2021-08": 0.89, "2021-11": 0.91, "2022-02": 1.15, "2022-05": 0.81, "2022-08": 1.03, "2022-11": 0.99, "2023-02": 1.29, "2023-05": 0.97, "2023-08": 1.14, "2023-11": 1.08, "2024-02": 1.38, "2024-05": 1.12, "2024-08": 1.18, "2024-11": 1.14, "2025-02": 1.49, "2025-05": 1.19, "2025-08": 1.22, "2025-11": 1.1, "2026-02": 1.56,
EPS CAGR: 19.10%
EPS Trend: 65.3%
Last SUE: -0.85
Qual. Beats: 0
Revenue Revenue of PAYX over the last years for every Quarter: 2021-02: 1111.7, 2021-05: 1029.2, 2021-08: 1082.9, 2021-11: 1108.5, 2022-02: 1276, 2022-05: 1144.3, 2022-08: 1206.2, 2022-11: 1190.3, 2023-02: 1381, 2023-05: 1229.6, 2023-08: 1286, 2023-11: 1257.9, 2024-02: 1439.3, 2024-05: 1295.1, 2024-08: 1318.5, 2024-11: 1316.9, 2025-02: 1509, 2025-05: 1427.3, 2025-08: 1540, 2025-11: 1557.6, 2026-02: 1808.9,
Rev. CAGR: 12.99%
Rev. Trend: 86.9%
Last SUE: 0.01
Qual. Beats: 0

Warnings

No concerns identified

Tailwinds

No distinct edge detected

Description: PAYX Paychex

Paychex Inc. (PAYX) provides human capital management (HCM) solutions. These services include payroll processing, tax administration, and employee payment services. HCM is a critical component of business operations, encompassing all aspects of employee management from onboarding to offboarding.

The company offers retirement solutions, HCM software, and talent management services. Paychex also provides workforce management, benefits administration, and financial wellness solutions. The business model focuses on recurring revenue streams from a broad client base.

Additionally, Paychex offers various insurance services, including property and casualty, and health and benefits coverage. The company serves small to medium-sized businesses across the United States, Europe, and India. To further understand Paychexs market position, consider exploring its competitive landscape on ValueRay.

Headlines to Watch Out For
  • Small business growth drives payroll and HR services demand
  • Interest rate changes impact float income from client funds
  • Regulatory compliance complexity increases demand for HR solutions
  • Competition in HCM market pressures service pricing
  • Wage inflation affects client payroll processing volume
Piotroski VR‑10 (Strict) 6.5
Net Income: 1.64b TTM > 0 and > 6% of Revenue
FCF/TA: 0.12 > 0.02 and ΔFCF/TA -1.99 > 1.0
NWC/Revenue: 32.35% < 20% (prev 41.87%; Δ -9.52% < -1%)
CFO/TA 0.14 > 3% & CFO 2.38b > Net Income 1.64b
Net Debt (3.22b) to EBITDA (2.81b): 1.14 < 3
Current Ratio: 1.26 > 1.5 & < 3
Outstanding Shares: last quarter (360.6m) vs 12m ago -0.39% < -2%
Gross Margin: 73.93% > 18% (prev 0.72%; Δ 7.32k% > 0.5%)
Asset Turnover: 44.09% > 50% (prev 48.47%; Δ -4.39% > 0%)
Interest Coverage Ratio: 8.94 > 6 (EBITDA TTM 2.81b / Interest Expense TTM 268.5m)
Altman Z'' 2.43
A: 0.12 (Total Current Assets 9.93b - Total Current Liabilities 7.88b) / Total Assets 17.51b
B: 0.12 (Retained Earnings 2.05b / Total Assets 17.51b)
C: 0.17 (EBIT TTM 2.40b / Avg Total Assets 14.37b)
D: 0.15 (Book Value of Equity 2.05b / Total Liabilities 13.50b)
Altman-Z'' Score: 2.43 = A
Beneish M -2.61
DSRI: 0.95 (Receivables 2.07b/1.87b, Revenue 6.33b/5.44b)
GMI: 0.97 (GM 73.93% / 72.03%)
AQI: 1.68 (AQ_t 0.40 / AQ_t-1 0.24)
SGI: 1.16 (Revenue 6.33b / 5.44b)
TATA: -0.04 (NI 1.64b - CFO 2.38b) / TA 17.51b)
Beneish M-Score: -2.61 (Cap -4..+1) = A
What is the price of PAYX shares? As of April 13, 2026, the stock is trading at USD 85.57 with a total of 3,323,328 shares traded.
Over the past week, the price has changed by -6.84%, over one month by -6.65%, over three months by -23.28% and over the past year by -40.57%.
Is PAYX a buy, sell or hold? Paychex has received a consensus analysts rating of 2.83. Therefor, it is recommend to hold PAYX.
  • StrongBuy: 1
  • Buy: 0
  • Hold: 13
  • Sell: 3
  • StrongSell: 1
What are the forecasts/targets for the PAYX price?
Analysts Target Price 101.2 18.3%
Paychex (PAYX) - Fundamental Data Overview as of 12 April 2026
P/E Trailing = 18.8896
P/E Forward = 14.6413
P/S = 7.7266
P/B = 7.8442
P/EG = 1.6834
Revenue TTM = 6.33b USD
EBIT TTM = 2.40b USD
EBITDA TTM = 2.81b USD
Long Term Debt = 4.55b USD (from longTermDebt, last quarter)
Short Term Debt = 400.0m USD (from shortTermDebt, last quarter)
Debt = 5.01b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 3.22b USD (from netDebt column, last quarter)
Enterprise Value = 33.84b USD (30.66b + Debt 5.01b - CCE 1.83b)
Interest Coverage Ratio = 8.94 (Ebit TTM 2.40b / Interest Expense TTM 268.5m)
EV/FCF = 15.73x (Enterprise Value 33.84b / FCF TTM 2.15b)
FCF Yield = 6.36% (FCF TTM 2.15b / Enterprise Value 33.84b)
FCF Margin = 33.97% (FCF TTM 2.15b / Revenue TTM 6.33b)
Net Margin = 25.84% (Net Income TTM 1.64b / Revenue TTM 6.33b)
Gross Margin = 73.93% ((Revenue TTM 6.33b - Cost of Revenue TTM 1.65b) / Revenue TTM)
Gross Margin QoQ = 76.16% (prev 73.54%)
Tobins Q-Ratio = 1.93 (Enterprise Value 33.84b / Total Assets 17.51b)
Interest Expense / Debt = 1.36% (Interest Expense 68.1m / Debt 5.01b)
Taxrate = 24.18% (178.7m / 739.0m)
NOPAT = 1.82b (EBIT 2.40b * (1 - 24.18%))
Current Ratio = 1.26 (Total Current Assets 9.93b / Total Current Liabilities 7.88b)
Debt / Equity = 1.25 (Debt 5.01b / totalStockholderEquity, last quarter 4.01b)
Debt / EBITDA = 1.14 (Net Debt 3.22b / EBITDA 2.81b)
Debt / FCF = 1.50 (Net Debt 3.22b / FCF TTM 2.15b)
Total Stockholder Equity = 4.00b (last 4 quarters mean from totalStockholderEquity)
RoA = 11.39% (Net Income 1.64b / Total Assets 17.51b)
RoE = 40.94% (Net Income TTM 1.64b / Total Stockholder Equity 4.00b)
RoCE = 28.06% (EBIT 2.40b / Capital Employed (Equity 4.00b + L.T.Debt 4.55b))
RoIC = 20.30% (NOPAT 1.82b / Invested Capital 8.96b)
WACC = 6.54% (E(30.66b)/V(35.67b) * Re(7.44%) + D(5.01b)/V(35.67b) * Rd(1.36%) * (1-Tc(0.24)))
Discount Rate = 7.44% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.92%
Shares Correlation 3-Years: -100.0 | Cagr: -0.17%
[DCF] Terminal Value 85.57% ; FCFF base≈1.93b ; Y1≈2.22b ; Y5≈3.10b
[DCF] Fair Price = 205.2 (EV 76.73b - Net Debt 3.22b = Equity 73.51b / Shares 358.3m; r=6.54% [WACC]; 5y FCF grow 17.25% → 3.0% )
EPS Correlation: 65.29 | EPS CAGR: 19.10% | SUE: -0.85 | # QB: 0
Revenue Correlation: 86.85 | Revenue CAGR: 12.99% | SUE: 0.01 | # QB: 0
EPS next Quarter (2026-08-31): EPS=1.32 | Chg7d=+0.001 | Chg30d=-0.011 | Revisions Net=-1 | Analysts=15
EPS next Year (2027-05-31): EPS=5.90 | Chg7d=-0.000 | Chg30d=-0.005 | Revisions Net=+2 | Growth EPS=+7.4% | Growth Revenue=+5.5%
[Analyst] Revisions Ratio: -0.09 (5 Up / 6 Down within 30d for Next Quarter)
[Growth] Implied Growth Rate = 2.6% (Discount Rate 7.9% - Earnings Yield 5.3%)
[Growth] Growth Spread = +2.9% (Analyst 5.6% - Implied 2.6%)
External Resources
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