Overview Dividends

(PAYX) Paychex - Ratings and Ratios

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

Payroll, Tax, Benefits, HR, Insurance

PAYX EPS (Earnings per Share)

EPS Growth (3Y CAGR): 7.89%
EPS Trend (3Y Correlation): 46.5%

PAYX Revenue

Revenue Growth (3Y CAGR): 9.82%
Revenue Trend (3Y Correlation): 73.4%

Description: PAYX Paychex September 29, 2025

Paychex Inc. (NASDAQ: PAYX) delivers a suite of human-capital-management (HCM) solutions-including payroll processing, tax administration, employee benefits, HR support, and insurance services-to small- and medium-sized enterprises across the United States, Europe, and India. Its core offering spans end-to-end payroll calculation, check issuance, tax filing, and remittance, complemented by compliance assistance and reporting tools.

Beyond payroll, the firm provides retirement-plan administration, talent-acquisition platforms, workforce-management tools, and a digital marketplace for earned-wage and financial-wellness products. Paychex also offers risk-management outsourcing and on-site or virtual HR representatives, positioning itself as a one-stop provider for non-payroll HR needs. Sales are primarily driven by a direct sales force that targets the fragmented SMB segment.

Key performance indicators as of FY 2024 show revenue of $5.0 billion, a 6 % year-over-year growth rate, and an adjusted EBITDA margin of roughly 22 %, reflecting strong pricing power in a market where U.S. small-business payroll spending is projected to expand at 4-5 % annually (source: IBISWorld). The sector’s growth is further fueled by rising gig-economy participation and tighter regulatory scrutiny on payroll tax compliance, both of which increase demand for automated, compliant solutions.

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

PAYX Stock Overview

Market Cap in USD	44,990m
Sub-Industry	Human Resource & Employment Services
IPO / Inception	1990-03-26

PAYX Stock Ratings

Growth Rating	11.9%
Fundamental	86.3%
Dividend Rating	78.0%
Return 12m vs S&P 500	-28.9%
Analyst Rating	2.83 of 5

PAYX Dividends

Dividend Yield 12m	4.44%
Yield on Cost 5y	7.12%
Annual Growth 5y	11.48%
Payout Consistency	98.1%
Payout Ratio	83.7%

PAYX Growth Ratios

Growth Correlation 3m	-92.4%
Growth Correlation 12m	-29%
Growth Correlation 5y	84.7%
CAGR 5y	4.00%
CAGR/Max DD 3y (Calmar Ratio)	0.15
CAGR/Mean DD 3y (Pain Ratio)	0.63
Sharpe Ratio 12m	-0.54
Alpha	-32.58
Beta	0.913
Volatility	30.13%
Current Volume	2754.2k
Average Volume 20d	2476.2k
Stop Loss	113.5 (-3%)
Signal	-0.01

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

(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) 86.26

1. Piotroski 6.50pt = 1.50

2. FCF Yield 3.98% = 1.99

3. FCF Margin 33.19% = 7.50

4. Debt/Equity 1.26 = 1.75

5. Debt/Ebitda 1.65 = 0.69

6. ROIC - WACC (= 16.85)% = 12.50

7. RoE 39.99% = 2.50

8. Rev. Trend 73.45% = 5.51

9. EPS Trend 46.46% = 2.32

What is the price of PAYX shares?

As of November 02, 2025, the stock is trading at USD 117.03 with a total of 2,754,180 shares traded.
Over the past week, the price has changed by -6.08%, over one month by -7.68%, over three months by -18.91% and over the past year by -13.63%.

Is Paychex a good stock to buy?

Yes, based on ValueRay´s Fundamental Analyses, Paychex (NASDAQ:PAYX) is currently (November 2025) a good stock to buy. It has a ValueRay Fundamental Rating of 86.26 and therefor a positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of PAYX is around 103.22 USD . This means that PAYX is currently overvalued and has a potential downside of -11.8%.

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	135	15.4%
Analysts Target Price	135	15.4%
ValueRay Target Price	115.1	-1.6%

PAYX Fundamental Data Overview October 29, 2025

Market Cap USD = 44.99b (44.99b USD * 1.0 USD.USD)
P/E Trailing = 27.904
P/E Forward = 22.779
P/S = 7.7661
P/B = 11.1868
P/EG = 2.3742
Beta = 0.913
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 = 48.34b USD (44.99b + Debt 5.02b - CCE 1.67b)
Interest Coverage Ratio = 13.90 (Ebit TTM 2.28b / Interest Expense TTM 164.0m)
FCF Yield = 3.98% (FCF TTM 1.92b / Enterprise Value 48.34b)
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 = 2.90 (Enterprise Value 48.34b / 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 = 8.54% (E(44.99b)/V(50.01b) * Re(9.38%) + D(5.02b)/V(50.01b) * Rd(1.36%) * (1-Tc(0.23)))
Discount Rate = 9.38% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.03%
[DCF Debug] Terminal Value 75.18% ; FCFE base≈1.80b ; Y1≈1.99b ; Y5≈2.59b
Fair Price DCF = 98.59 (DCF Value 35.48b / Shares Outstanding 359.9m; 5y FCF grow 12.21% → 3.0% )
EPS Correlation: 46.46 | EPS CAGR: 7.89% | SUE: 1.93 | # QB: 1
Revenue Correlation: 73.45 | Revenue CAGR: 9.82% | SUE: 0.00 | # QB: 0

Additional Sources for PAYX Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
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Fund Manager Positions: Dataroma | Stockcircle