(PAYX) Paychex - Ratings and Ratios
Exchange: NASDAQ •
Country: United States •
Currency: USD •
Type: Common Stock •
ISIN: US7043261079
Payroll, HR Solutions, Benefits, Insurance, Compliance
Dividends
| Dividend Yield | 3.77% |
| Yield on Cost 5y | 5.20% |
| Yield CAGR 5y | 11.48% |
| Payout Consistency | 97.5% |
| Payout Ratio | 83.7% |
| Risk via 10d forecast | |
|---|---|
| Volatility | 20.3% |
| Value at Risk 5%th | 31.7% |
| Relative Tail Risk | -4.83% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.96 |
| Alpha | -30.45 |
| CAGR/Max DD | 0.03 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.563 |
| Beta | 0.581 |
| Beta Downside | 0.551 |
| Drawdowns 3y | |
|---|---|
| Max DD | 30.94% |
| Mean DD | 6.86% |
| Median DD | 5.58% |
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 (1.61b TTM) > 0 and > 6% of Revenue (6% = 347.6m TTM) |
| FCFTA 0.12 (>2.0%) and ΔFCFTA -3.91pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 32.99% (prev 37.99%; Δ -5.00pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.13 (>3.0%) and CFO 2.13b > Net Income 1.61b (YES >=105%, WARN >=100%) |
| Net Debt (4.21b) to EBITDA (2.56b) ratio: 1.65 <= 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 (361.9m) change vs 12m ago 0.0% (target <= -2.0% for YES) |
| Gross Margin 72.83% (prev 71.77%; Δ 1.05pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 42.67% (prev 50.63%; Δ -7.96pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 13.90 (EBITDA TTM 2.56b / Interest Expense TTM 164.0m) >= 6 (WARN >= 3) |
Altman Z'' 2.46
| (A) 0.11 = (Total Current Assets 9.04b - Total Current Liabilities 7.13b) / Total Assets 16.66b |
| (B) 0.12 = Retained Earnings (Balance) 2.07b / Total Assets 16.66b |
| (C) 0.17 = EBIT TTM 2.28b / Avg Total Assets 13.58b |
| (D) 0.16 = Book Value of Equity 2.05b / Total Liabilities 12.69b |
| Total Rating: 2.46 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 88.00
| 1. Piotroski 6.50pt |
| 2. FCF Yield 4.42% |
| 3. FCF Margin 33.19% |
| 4. Debt/Equity 1.26 |
| 5. Debt/Ebitda 1.65 |
| 6. ROIC - WACC (= 18.02)% |
| 7. RoE 39.99% |
| 8. Rev. Trend 82.12% |
| 9. EPS Trend 63.88% |
What is the price of PAYX shares?
As of December 07, 2025, the stock is trading at USD 112.06 with a total of 2,463,836 shares traded.
Over the past week, the price has changed by +0.33%, over one month by -2.88%, over three months by -16.46% and over the past year by -18.84%.
Over the past week, the price has changed by +0.33%, over one month by -2.88%, over three months by -16.46% and over the past year by -18.84%.
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 | 134.1 | 19.7% |
| Analysts Target Price | 134.1 | 19.7% |
| ValueRay Target Price | 106.1 | -5.3% |
PAYX Fundamental Data Overview November 24, 2025
Market Cap USD = 40.11b (40.11b USD * 1.0 USD.USD)
P/E Trailing = 24.991
P/E Forward = 20.79
P/S = 6.9243
P/B = 10.1027
P/EG = 2.1637
Beta = 0.894
Revenue TTM = 5.79b USD
EBIT TTM = 2.28b USD
EBITDA TTM = 2.56b USD
Long Term Debt = 4.55b USD (from longTermDebt, last quarter)
Short Term Debt = 418.4m USD (from shortTermDebt, last quarter)
Debt = 5.02b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 4.21b USD (from netDebt column, last quarter)
Enterprise Value = 43.46b USD (40.11b + Debt 5.02b - CCE 1.67b)
Interest Coverage Ratio = 13.90 (Ebit TTM 2.28b / Interest Expense TTM 164.0m)
FCF Yield = 4.42% (FCF TTM 1.92b / Enterprise Value 43.46b)
FCF Margin = 33.19% (FCF TTM 1.92b / Revenue TTM 5.79b)
Net Margin = 27.86% (Net Income TTM 1.61b / Revenue TTM 5.79b)
Gross Margin = 72.83% ((Revenue TTM 5.79b - Cost of Revenue TTM 1.57b) / Revenue TTM)
Gross Margin QoQ = 73.13% (prev 72.40%)
Tobins Q-Ratio = 2.61 (Enterprise Value 43.46b / Total Assets 16.66b)
Interest Expense / Debt = 1.36% (Interest Expense 68.2m / Debt 5.02b)
Taxrate = 22.85% (113.7m / 497.5m)
NOPAT = 1.76b (EBIT 2.28b * (1 - 22.85%))
Current Ratio = 1.27 (Total Current Assets 9.04b / Total Current Liabilities 7.13b)
Debt / Equity = 1.26 (Debt 5.02b / totalStockholderEquity, last quarter 3.97b)
Debt / EBITDA = 1.65 (Net Debt 4.21b / EBITDA 2.56b)
Debt / FCF = 2.19 (Net Debt 4.21b / FCF TTM 1.92b)
Total Stockholder Equity = 4.04b (last 4 quarters mean from totalStockholderEquity)
RoA = 9.68% (Net Income 1.61b / Total Assets 16.66b)
RoE = 39.99% (Net Income TTM 1.61b / Total Stockholder Equity 4.04b)
RoCE = 26.56% (EBIT 2.28b / Capital Employed (Equity 4.04b + L.T.Debt 4.55b))
RoIC = 25.39% (NOPAT 1.76b / Invested Capital 6.93b)
WACC = 7.37% (E(40.11b)/V(45.14b) * Re(8.16%) + D(5.02b)/V(45.14b) * Rd(1.36%) * (1-Tc(0.23)))
Discount Rate = 8.16% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.03%
[DCF Debug] Terminal Value 79.31% ; FCFE base≈1.80b ; Y1≈1.99b ; Y5≈2.59b
Fair Price DCF = 122.2 (DCF Value 43.99b / Shares Outstanding 359.9m; 5y FCF grow 12.21% → 3.0% )
EPS Correlation: 63.88 | EPS CAGR: 8.13% | SUE: 1.19 | # QB: 1
Revenue Correlation: 82.12 | Revenue CAGR: 9.16% | SUE: 0.00 | # QB: 0
EPS next Quarter (2026-02-28): EPS=1.66 | Chg30d=-0.001 | Revisions Net=+1 | Analysts=16
EPS current Year (2026-05-31): EPS=5.47 | Chg30d=-0.001 | Revisions Net=-2 | Growth EPS=+9.8% | Growth Revenue=+17.2%
EPS next Year (2027-05-31): EPS=5.90 | Chg30d=-0.001 | Revisions Net=+2 | Growth EPS=+7.9% | Growth Revenue=+6.0%
P/E Trailing = 24.991
P/E Forward = 20.79
P/S = 6.9243
P/B = 10.1027
P/EG = 2.1637
Beta = 0.894
Revenue TTM = 5.79b USD
EBIT TTM = 2.28b USD
EBITDA TTM = 2.56b USD
Long Term Debt = 4.55b USD (from longTermDebt, last quarter)
Short Term Debt = 418.4m USD (from shortTermDebt, last quarter)
Debt = 5.02b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 4.21b USD (from netDebt column, last quarter)
Enterprise Value = 43.46b USD (40.11b + Debt 5.02b - CCE 1.67b)
Interest Coverage Ratio = 13.90 (Ebit TTM 2.28b / Interest Expense TTM 164.0m)
FCF Yield = 4.42% (FCF TTM 1.92b / Enterprise Value 43.46b)
FCF Margin = 33.19% (FCF TTM 1.92b / Revenue TTM 5.79b)
Net Margin = 27.86% (Net Income TTM 1.61b / Revenue TTM 5.79b)
Gross Margin = 72.83% ((Revenue TTM 5.79b - Cost of Revenue TTM 1.57b) / Revenue TTM)
Gross Margin QoQ = 73.13% (prev 72.40%)
Tobins Q-Ratio = 2.61 (Enterprise Value 43.46b / Total Assets 16.66b)
Interest Expense / Debt = 1.36% (Interest Expense 68.2m / Debt 5.02b)
Taxrate = 22.85% (113.7m / 497.5m)
NOPAT = 1.76b (EBIT 2.28b * (1 - 22.85%))
Current Ratio = 1.27 (Total Current Assets 9.04b / Total Current Liabilities 7.13b)
Debt / Equity = 1.26 (Debt 5.02b / totalStockholderEquity, last quarter 3.97b)
Debt / EBITDA = 1.65 (Net Debt 4.21b / EBITDA 2.56b)
Debt / FCF = 2.19 (Net Debt 4.21b / FCF TTM 1.92b)
Total Stockholder Equity = 4.04b (last 4 quarters mean from totalStockholderEquity)
RoA = 9.68% (Net Income 1.61b / Total Assets 16.66b)
RoE = 39.99% (Net Income TTM 1.61b / Total Stockholder Equity 4.04b)
RoCE = 26.56% (EBIT 2.28b / Capital Employed (Equity 4.04b + L.T.Debt 4.55b))
RoIC = 25.39% (NOPAT 1.76b / Invested Capital 6.93b)
WACC = 7.37% (E(40.11b)/V(45.14b) * Re(8.16%) + D(5.02b)/V(45.14b) * Rd(1.36%) * (1-Tc(0.23)))
Discount Rate = 8.16% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.03%
[DCF Debug] Terminal Value 79.31% ; FCFE base≈1.80b ; Y1≈1.99b ; Y5≈2.59b
Fair Price DCF = 122.2 (DCF Value 43.99b / Shares Outstanding 359.9m; 5y FCF grow 12.21% → 3.0% )
EPS Correlation: 63.88 | EPS CAGR: 8.13% | SUE: 1.19 | # QB: 1
Revenue Correlation: 82.12 | Revenue CAGR: 9.16% | SUE: 0.00 | # QB: 0
EPS next Quarter (2026-02-28): EPS=1.66 | Chg30d=-0.001 | Revisions Net=+1 | Analysts=16
EPS current Year (2026-05-31): EPS=5.47 | Chg30d=-0.001 | Revisions Net=-2 | Growth EPS=+9.8% | Growth Revenue=+17.2%
EPS next Year (2027-05-31): EPS=5.90 | Chg30d=-0.001 | Revisions Net=+2 | Growth EPS=+7.9% | Growth Revenue=+6.0%
Additional Sources for PAYX Stock
News:
Wall Street Journal |
Benzinga |
Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle