(PAYX) Paychex - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US7043261079

Payroll, HR Solutions, Benefits, Insurance, Compliance

Stock: Human Resource & Employment Services
Age 35.8y

MCap 38,277m
Avg Vol 2.77M (301M USD)

Beta 0.573
Volatility 21.67%

EPS (Earnings per Share)

Revenue

Rev. CAGR: 5.46%
Rev. Trend: 82.0%

Qual. Beats: 0

Dividends

Dividend Yield	3.10%
Yield on Cost 5y	6.94%
Yield CAGR 5y	12.87%
Payout Consistency	98.2%
Payout Ratio	-

Risk via 5d forecast
Volatility	21.7%
Value at Risk 5%th	33.7%
Relative Tail Risk	-5.59%

Reward TTM
Sharpe Ratio	-1.33
Alpha	-36.69
CAGR/Max DD	-0.01

Character TTM
Hurst Exponent	0.484
Beta	0.573
Beta Downside	0.535

Drawdowns 3y
Max DD	33.18%
Mean DD	7.63%
Median DD	5.52%

Description: PAYX Paychex December 04, 2025

Paychex Inc. (NASDAQ: PAYX) delivers a suite of human capital management (HCM) solutions-including payroll processing, tax administration, benefits administration, talent acquisition, and risk-management services-to small- and medium-sized enterprises across the United States, Europe, and India. Its offerings span the full employee lifecycle, from recruiting and onboarding through retirement, and are sold primarily via a direct sales force.

Key recent metrics show FY 2023 revenue of roughly $5.1 billion, up about 8 % year-over-year, with adjusted earnings per share of $6.70 and an operating margin near 20 %. The business benefits from two macro-drivers: (1) continued hiring growth and wage inflation in the U.S. SMB segment, which raises payroll volume and compliance complexity, and (2) accelerating adoption of cloud-based HCM platforms that boost demand for integrated, subscription-style services. Paychex’s market share in the U.S. payroll processing market remains around 20 %, and its churn rate for core payroll clients stays below 3 %-a sign of sticky revenue.

For a deeper quantitative comparison of PAYX’s valuation metrics, you might explore the ValueRay platform.

Piotroski VR‑10 (Strict, 0-10) 6.5

Net Income: 1.60b TTM > 0 and > 6% of Revenue
FCF/TA: 0.12 > 0.02 and ΔFCF/TA -2.33 > 1.0
NWC/Revenue: 30.96% < 20% (prev 39.12%; Δ -8.15% < -1%)
CFO/TA 0.14 > 3% & CFO 2.28b > Net Income 1.60b
Net Debt (3.50b) to EBITDA (2.66b): 1.31 < 3
Current Ratio: 1.27 > 1.5 & < 3
Outstanding Shares: last quarter (361.1m) vs 12m ago -0.19% < -2%
Gross Margin: 73.36% > 18% (prev 0.72%; Δ 7264 % > 0.5%)
Asset Turnover: 44.57% > 50% (prev 50.88%; Δ -6.30% > 0%)
Interest Coverage Ratio: 10.38 > 6 (EBITDA TTM 2.66b / Interest Expense TTM 223.0m)

Altman Z'' 2.44

A: 0.11 (Total Current Assets 8.91b - Total Current Liabilities 7.04b) / Total Assets 16.52b
B: 0.12 (Retained Earnings 1.95b / Total Assets 16.52b)
C: 0.17 (EBIT TTM 2.32b / Avg Total Assets 13.54b)
D: 0.15 (Book Value of Equity 1.94b / Total Liabilities 12.64b)
Altman-Z'' Score: 2.44 = A

Beneish M -2.63

DSRI: 0.96 (Receivables 2.03b/1.88b, Revenue 6.03b/5.37b)
GMI: 0.98 (GM 73.36% / 71.80%)
AQI: 1.68 (AQ_t 0.42 / AQ_t-1 0.25)
SGI: 1.12 (Revenue 6.03b / 5.37b)
TATA: -0.04 (NI 1.60b - CFO 2.28b) / TA 16.52b)
Beneish M-Score: -2.63 (Cap -4..+1) = A

ValueRay F-Score (Strict, 0-100) 85.61

1. Piotroski: 6.50pt
2. FCF Yield: 4.93%
3. FCF Margin: 34.10%
4. Debt/Equity: 1.30
5. Debt/Ebitda: 1.31
6. ROIC - WACC: 14.91%
7. RoE: 39.66%
8. Revenue Trend: 82.03%
9. EPS Trend: data missing

What is the price of PAYX shares?

As of January 28, 2026, the stock is trading at USD 104.94 with a total of 2,928,575 shares traded.
Over the past week, the price has changed by -2.31%, over one month by -7.95%, over three months by -15.24% and over the past year by -26.89%.

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?

Issuer	Target	Up/Down from current
Wallstreet Target Price	121.8	16.1%
Analysts Target Price	121.8	16.1%
ValueRay Target Price	106	1%

PAYX Fundamental Data Overview January 27, 2026

P/E Trailing = 24.07
P/E Forward = 19.4553
P/S = 6.3436
P/B = 9.8649
P/EG = 2.0284
Revenue TTM = 6.03b USD
EBIT TTM = 2.32b USD
EBITDA TTM = 2.66b USD
Long Term Debt = 4.55b USD (from longTermDebt, last quarter)
Short Term Debt = 418.1m USD (from shortTermDebt, last quarter)
Debt = 5.04b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 3.50b USD (from netDebt column, last quarter)
Enterprise Value = 41.74b USD (38.28b + Debt 5.04b - CCE 1.57b)
Interest Coverage Ratio = 10.38 (Ebit TTM 2.32b / Interest Expense TTM 223.0m)
EV/FCF = 20.29x (Enterprise Value 41.74b / FCF TTM 2.06b)
FCF Yield = 4.93% (FCF TTM 2.06b / Enterprise Value 41.74b)
FCF Margin = 34.10% (FCF TTM 2.06b / Revenue TTM 6.03b)
Net Margin = 26.45% (Net Income TTM 1.60b / Revenue TTM 6.03b)
Gross Margin = 73.36% ((Revenue TTM 6.03b - Cost of Revenue TTM 1.61b) / Revenue TTM)
Gross Margin QoQ = 73.54% (prev 73.13%)
Tobins Q-Ratio = 2.53 (Enterprise Value 41.74b / Total Assets 16.52b)
Interest Expense / Debt = 1.36% (Interest Expense 68.5m / Debt 5.04b)
Taxrate = 23.99% (124.8m / 520.2m)
NOPAT = 1.76b (EBIT 2.32b * (1 - 23.99%))
Current Ratio = 1.27 (Total Current Assets 8.91b / Total Current Liabilities 7.04b)
Debt / Equity = 1.30 (Debt 5.04b / totalStockholderEquity, last quarter 3.88b)
Debt / EBITDA = 1.31 (Net Debt 3.50b / EBITDA 2.66b)
Debt / FCF = 1.70 (Net Debt 3.50b / FCF TTM 2.06b)
Total Stockholder Equity = 4.02b (last 4 quarters mean from totalStockholderEquity)
RoA = 11.79% (Net Income 1.60b / Total Assets 16.52b)
RoE = 39.66% (Net Income TTM 1.60b / Total Stockholder Equity 4.02b)
RoCE = 27.00% (EBIT 2.32b / Capital Employed (Equity 4.02b + L.T.Debt 4.55b))
RoIC = 22.13% (NOPAT 1.76b / Invested Capital 7.95b)
WACC = 7.22% (E(38.28b)/V(43.31b) * Re(8.03%) + D(5.04b)/V(43.31b) * Rd(1.36%) * (1-Tc(0.24)))
Discount Rate = 8.03% (= CAPM, Blume Beta Adj.)
Fair Price DCF = unknown (Cash Flow 2.06b)
Revenue Correlation: 82.03 | Revenue CAGR: 5.46% | SUE: N/A | # QB: 0

Additional Sources for PAYX Stock

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