(PAYX) Paychex - Overview
Sector: TechnologyIndustry: Software - Application | Exchange NASDAQ (USA) | Currency USD | Market Cap: 33.513m | Total Return -37.5% in 12m
Stock: Payroll, Benefits, Human Resources, Insurance
Total Rating 54
Risk 71
Buy Signal -1.35
| Risk 5d forecast | |
|---|---|
| Volatility | 25.5% |
| Relative Tail Risk | -3.31% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -1.83 |
| Alpha | -44.80 |
| Character TTM | |
|---|---|
| Beta | 0.439 |
| Beta Downside | 0.702 |
| Drawdowns 3y | |
|---|---|
| Max DD | 43.78% |
| CAGR/Max DD | -0.10 |
EPS (Earnings per Share)
Revenue
Description: PAYX Paychex March 04, 2026
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, 0-10) 6.0
| 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 (-1.28b) to EBITDA (2.09b): -0.61 < 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: 3.70 > 6 (EBITDA TTM 2.09b / Interest Expense TTM 541.9m) |
Altman Z'' 2.25
| 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: 0.14 (EBIT TTM 2.00b / Avg Total Assets 14.37b) |
| D: 0.15 (Book Value of Equity 2.05b / Total Liabilities 13.50b) |
| Altman-Z'' Score: 2.25 = BBB |
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 March 29, 2026, the stock is trading at USD 91.68 with a total of 3,583,783 shares traded.
Over the past week, the price has changed by -0.94%, over one month by -2.10%, over three months by -18.74% and over the past year by -37.49%.
Over the past week, the price has changed by -0.94%, over one month by -2.10%, over three months by -18.74% and over the past year by -37.49%.
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 | 110.9 | 21% |
| Analysts Target Price | 110.9 | 21% |
PAYX Fundamental Data Overview March 27, 2026
P/E Trailing = 20.6093
P/E Forward = 15.5521
P/S = 5.5542
P/B = 8.5623
P/EG = 1.7576
Revenue TTM = 6.33b USD
EBIT TTM = 2.00b USD
EBITDA TTM = 2.09b USD
Long Term Debt = 4.55b USD (from longTermDebt, last fiscal year)
Short Term Debt = 400.0m USD (from shortTermDebt, last quarter)
Debt = 459.3m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -1.28b USD (from netDebt column, last quarter)
Enterprise Value = 32.23b USD (33.51b + Debt 459.3m - CCE 1.74b)
Interest Coverage Ratio = 3.70 (Ebit TTM 2.00b / Interest Expense TTM 541.9m)
EV/FCF = 14.98x (Enterprise Value 32.23b / FCF TTM 2.15b)
FCF Yield = 6.68% (FCF TTM 2.15b / Enterprise Value 32.23b)
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 = 1.84 (Enterprise Value 32.23b / Total Assets 17.51b)
Interest Expense / Debt = 74.35% (Interest Expense 341.5m / Debt 459.3m)
Taxrate = 24.18% (178.7m / 739.0m)
NOPAT = 1.52b (EBIT 2.00b * (1 - 24.18%))
Current Ratio = 1.26 (Total Current Assets 9.93b / Total Current Liabilities 7.88b)
Debt / Equity = 0.11 (Debt 459.3m / totalStockholderEquity, last quarter 4.01b)
Debt / EBITDA = -0.61 (Net Debt -1.28b / EBITDA 2.09b)
Debt / FCF = -0.60 (Net Debt -1.28b / 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 = 23.46% (EBIT 2.00b / Capital Employed (Equity 4.00b + L.T.Debt 4.55b))
RoIC = 16.96% (NOPAT 1.52b / Invested Capital 8.96b)
WACC = 7.43% (E(33.51b)/V(33.97b) * Re(7.53%) + (debt cost/tax rate unavailable))
Discount Rate = 7.53% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.92%
Shares Correlation 3-Years: -100.0 | Cagr: -0.17%
[DCF] Terminal Value 82.34% ; FCFF base≈1.93b ; Y1≈2.22b ; Y5≈3.10b
[DCF] Fair Price = 173.9 (EV 61.14b - Net Debt -1.28b = Equity 62.42b / Shares 359.0m; r=7.43% [WACC]; 5y FCF grow 17.25% → 3.0% )
EPS Correlation: 72.74 | EPS CAGR: 22.05% | SUE: 3.35 | # QB: 3
Revenue Correlation: 86.85 | Revenue CAGR: 12.99% | SUE: 0.01 | # QB: 0
EPS current Year (2026-05-31): EPS=5.49 | Chg7d=+0.004 | Chg30d=+0.003 | Revisions Net=+0 | Growth EPS=+10.3% | Growth Revenue=+16.7%
EPS next Year (2027-05-31): EPS=5.91 | Chg7d=+0.001 | Chg30d=-0.003 | Revisions Net=-1 | Growth EPS=+7.6% | Growth Revenue=+5.7%
[Analyst] Revisions Ratio: +0.00 (1 Up / 1 Down within 30d for Current Year)
[Growth] Implied Growth Rate = 3.1% (Discount Rate 7.9% - Earnings Yield 4.9%)
[Growth] Growth Spread = +2.6% (Analyst 5.7% - Implied 3.1%)
P/E Forward = 15.5521
P/S = 5.5542
P/B = 8.5623
P/EG = 1.7576
Revenue TTM = 6.33b USD
EBIT TTM = 2.00b USD
EBITDA TTM = 2.09b USD
Long Term Debt = 4.55b USD (from longTermDebt, last fiscal year)
Short Term Debt = 400.0m USD (from shortTermDebt, last quarter)
Debt = 459.3m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -1.28b USD (from netDebt column, last quarter)
Enterprise Value = 32.23b USD (33.51b + Debt 459.3m - CCE 1.74b)
Interest Coverage Ratio = 3.70 (Ebit TTM 2.00b / Interest Expense TTM 541.9m)
EV/FCF = 14.98x (Enterprise Value 32.23b / FCF TTM 2.15b)
FCF Yield = 6.68% (FCF TTM 2.15b / Enterprise Value 32.23b)
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 = 1.84 (Enterprise Value 32.23b / Total Assets 17.51b)
Interest Expense / Debt = 74.35% (Interest Expense 341.5m / Debt 459.3m)
Taxrate = 24.18% (178.7m / 739.0m)
NOPAT = 1.52b (EBIT 2.00b * (1 - 24.18%))
Current Ratio = 1.26 (Total Current Assets 9.93b / Total Current Liabilities 7.88b)
Debt / Equity = 0.11 (Debt 459.3m / totalStockholderEquity, last quarter 4.01b)
Debt / EBITDA = -0.61 (Net Debt -1.28b / EBITDA 2.09b)
Debt / FCF = -0.60 (Net Debt -1.28b / 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 = 23.46% (EBIT 2.00b / Capital Employed (Equity 4.00b + L.T.Debt 4.55b))
RoIC = 16.96% (NOPAT 1.52b / Invested Capital 8.96b)
WACC = 7.43% (E(33.51b)/V(33.97b) * Re(7.53%) + (debt cost/tax rate unavailable))
Discount Rate = 7.53% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.92%
Shares Correlation 3-Years: -100.0 | Cagr: -0.17%
[DCF] Terminal Value 82.34% ; FCFF base≈1.93b ; Y1≈2.22b ; Y5≈3.10b
[DCF] Fair Price = 173.9 (EV 61.14b - Net Debt -1.28b = Equity 62.42b / Shares 359.0m; r=7.43% [WACC]; 5y FCF grow 17.25% → 3.0% )
EPS Correlation: 72.74 | EPS CAGR: 22.05% | SUE: 3.35 | # QB: 3
Revenue Correlation: 86.85 | Revenue CAGR: 12.99% | SUE: 0.01 | # QB: 0
EPS current Year (2026-05-31): EPS=5.49 | Chg7d=+0.004 | Chg30d=+0.003 | Revisions Net=+0 | Growth EPS=+10.3% | Growth Revenue=+16.7%
EPS next Year (2027-05-31): EPS=5.91 | Chg7d=+0.001 | Chg30d=-0.003 | Revisions Net=-1 | Growth EPS=+7.6% | Growth Revenue=+5.7%
[Analyst] Revisions Ratio: +0.00 (1 Up / 1 Down within 30d for Current Year)
[Growth] Implied Growth Rate = 3.1% (Discount Rate 7.9% - Earnings Yield 4.9%)
[Growth] Growth Spread = +2.6% (Analyst 5.7% - Implied 3.1%)