(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 39,910m
Avg Vol 2.78M (307M USD)
Beta 0.570
Volatility 23.59%

EPS (Earnings per Share)

EPS (Earnings per Share) of PAYX over the last years for every Quarter: "2020-11": 0.73, "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": 1.26,
EPS CAGR: 2.47%
EPS Trend: 59.0%
Last SUE: 1.78
Qual. Beats: 2

Revenue

Revenue of PAYX over the last years for every Quarter: 2020-11: 983.7, 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,
Rev. CAGR: 5.46%
Rev. Trend: 82.0%
Last SUE: 0.00
Qual. Beats: 0

Dividends

Dividend Yield 3.10%
Yield on Cost 5y 5.59%
Yield CAGR 5y 12.87%
Payout Consistency 98.2%
Payout Ratio 83.7%
Risk via 5d forecast
Volatility 23.6%
Value at Risk 5%th 36.9%
Relative Tail Risk -4.90%
Reward TTM
Sharpe Ratio -1.19
Alpha -35.37
CAGR/Max DD -0.01
Character TTM
Hurst Exponent 0.496
Beta 0.570
Beta Downside 0.540
Drawdowns 3y
Max DD 31.61%
Mean DD 7.44%
Median DD 5.49%

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 (6% = 362.0m TTM)
FCFTA 0.12 (>2.0%) and ΔFCFTA -2.33pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)
NWC/Revenue 30.96% (prev 39.12%; Δ -8.15pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)
CFO/TA 0.14 (>3.0%) and CFO 2.28b > Net Income 1.60b (YES >=105%, WARN >=100%)
Net Debt (3.50b) to EBITDA (2.66b) ratio: 1.31 <= 3.0 (WARN <= 3.5)
Current Ratio 1.27 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)
Outstanding Shares last Quarter (361.1m) change vs 12m ago -0.19% (target <= -2.0% for YES)
Gross Margin 73.36% (prev 71.80%; Δ 1.56pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)
Asset Turnover 44.57% (prev 50.88%; Δ -6.30pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)
Interest Coverage Ratio 10.38 (EBITDA TTM 2.66b / Interest Expense TTM 223.0m) >= 6 (WARN >= 3)

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 (Balance) 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
Total Rating: 2.44 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 88.47

1. Piotroski 6.50pt
2. FCF Yield 4.74%
3. FCF Margin 34.10%
4. Debt/Equity 1.30
5. Debt/Ebitda 1.31
6. ROIC - WACC (= 14.89)%
7. RoE 39.66%
8. Rev. Trend 82.03%
9. EPS Trend 59.05%

What is the price of PAYX shares?

As of January 21, 2026, the stock is trading at USD 107.42 with a total of 3,568,960 shares traded.
Over the past week, the price has changed by -2.04%, over one month by -6.49%, over three months by -14.32% and over the past year by -23.94%.

Is PAYX a buy, sell or hold?

Paychex has received a consensus analysts rating of 2.83. Therefor, it is recommend to hold PAYX.
  • Strong Buy: 1
  • Buy: 0
  • Hold: 13
  • Sell: 3
  • Strong Sell: 1

What are the forecasts/targets for the PAYX price?

Issuer Target Up/Down from current
Wallstreet Target Price 122.1 13.7%
Analysts Target Price 122.1 13.7%
ValueRay Target Price 107.8 0.4%

PAYX Fundamental Data Overview January 19, 2026

P/E Trailing = 25.1538
P/E Forward = 20.284
P/S = 6.6143
P/B = 10.2858
P/EG = 2.1149
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 = 43.37b USD (39.91b + Debt 5.04b - CCE 1.57b)
Interest Coverage Ratio = 10.38 (Ebit TTM 2.32b / Interest Expense TTM 223.0m)
EV/FCF = 21.08x (Enterprise Value 43.37b / FCF TTM 2.06b)
FCF Yield = 4.74% (FCF TTM 2.06b / Enterprise Value 43.37b)
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 = 2.63 (Enterprise Value 43.37b / 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 = 7.24% (E(39.91b)/V(44.95b) * Re(8.02%) + D(5.04b)/V(44.95b) * Rd(1.36%) * (1-Tc(0.24)))
Discount Rate = 8.02% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -0.14%
[DCF Debug] Terminal Value 82.23% ; FCFF base≈1.86b ; Y1≈2.06b ; Y5≈2.66b
Fair Price DCF = 141.1 (EV 54.16b - Net Debt 3.50b = Equity 50.66b / Shares 359.0m; r=7.24% [WACC]; 5y FCF grow 12.21% → 2.90% )
EPS Correlation: 59.05 | EPS CAGR: 2.47% | SUE: 1.78 | # QB: 2
Revenue Correlation: 82.03 | Revenue CAGR: 5.46% | SUE: 0.00 | # QB: 0
EPS next Quarter (2026-02-28): EPS=1.67 | Chg30d=+0.006 | Revisions Net=+2 | Analysts=16
EPS current Year (2026-05-31): EPS=5.49 | Chg30d=+0.027 | Revisions Net=+13 | Growth EPS=+10.2% | Growth Revenue=+16.7%
EPS next Year (2027-05-31): EPS=5.91 | Chg30d=+0.013 | Revisions Net=+1 | Growth EPS=+7.7% | Growth Revenue=+5.9%

Additional Sources for PAYX Stock

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