(PAYX) Paychex - Overview

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

Stock:

Total Rating 32

Risk 83

Buy Signal -0.67

Software - Application +10.2
Human Resource & Employment Services -18.4

Market Cap: 31,370m
Avg Trading Vol: 425M USD

ATR: 3.06%
Peers RS (IBD): 29.41

Risk 5d forecast
Volatility	27.1%
Relative Tail Risk	-5.54%

Reward TTM
Sharpe Ratio	-1.66
Alpha	-45.72

Character TTM
Beta	0.520
Beta Downside	0.213

Drawdowns 3y
Max DD	43.78%
CAGR/Max DD	-0.07

EPS (Earnings per Share)

EPS CAGR: -1.18%
EPS Trend: 50.0%

Last SUE: -1.78
Qual. Beats: 0

Revenue

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

Last SUE: 0.00
Qual. Beats: 0

Description: PAYX Paychex

Paychex, Inc., together with its subsidiaries, provides human capital management solutions (HCM) for payroll, employee benefits, human resources (HR), and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services. The company provides retirement solutions, such as plan implementation, ongoing compliance with government regulations, employee and employer reporting, participant and employer online access, electronic funds transfer, and other administrative services; HCM solutions from recruiting and hiring to retirement; and talent management and talent acquisition services. In addition, it offers payroll solutions, including calculation, preparation, and delivery of employee payroll checks; production of internal accounting records and management reports; preparation of federal, state, and local payroll tax returns; and collection and remittance of clients' payroll obligations. Further, the company provides workforce management solutions; benefits administration solutions; digital marketplace for earned wages, financial wellness solutions, and voluntary lifestyle benefits; HR support to non-payroll clients through HR Partner Plus solution; and insurance services for property and casualty coverage, such as workers' compensation, business-owner policies, cyber security protection, and commercial auto, as well as health and benefits coverage, including health, dental, vision, and life. Additionally, it offers payroll, employer compliance, HR and employee benefits administration, risk management outsourcing, and both virtual and on-site availability of a professionally trained HR representative, and other solutions to businesses. It markets and sells its services primarily through its direct sales force. The company was founded in 1971 and is headquartered in Rochester, New York.

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

What is the price of PAYX shares?

As of March 01, 2026, the stock is trading at USD 93.65 with a total of 6,730,375 shares traded.
Over the past week, the price has changed by +2.64%, over one month by -9.83%, over three months by -15.28% and over the past year by -34.83%.

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	119.1	27.1%
Analysts Target Price	119.1	27.1%

PAYX Fundamental Data Overview February 24, 2026

P/E Trailing = 19.7715
P/E Forward = 22.779
P/S = 5.199
P/B = 11.1868
P/EG = 2.3742
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 = 34.83b USD (31.37b + Debt 5.04b - CCE 1.57b)
Interest Coverage Ratio = 10.38 (Ebit TTM 2.32b / Interest Expense TTM 223.0m)
EV/FCF = 16.93x (Enterprise Value 34.83b / FCF TTM 2.06b)
FCF Yield = 5.91% (FCF TTM 2.06b / Enterprise Value 34.83b)
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 = 2.11 (Enterprise Value 34.83b / 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 = 6.89% (E(31.37b)/V(36.41b) * Re(7.83%) + D(5.04b)/V(36.41b) * Rd(1.36%) * (1-Tc(0.24)))
Discount Rate = 7.83% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: -100.0 | Cagr: -0.14%
[DCF] Terminal Value 83.51% ; FCFF base≈1.86b ; Y1≈2.06b ; Y5≈2.66b
[DCF] Fair Price = 154.4 (EV 58.93b - Net Debt 3.50b = Equity 55.43b / Shares 359.0m; r=6.89% [WACC]; 5y FCF grow 12.21% → 2.90% )
EPS Correlation: 50.00 | EPS CAGR: -1.18% | SUE: -1.78 | # QB: 0
Revenue Correlation: 82.03 | Revenue CAGR: 5.46% | SUE: 0.00 | # QB: 0
EPS current Year (2026-05-31): EPS=5.49 | Chg7d=-0.001 | Chg30d=-0.004 | Revisions Net=+13 | Growth EPS=+10.2% | Growth Revenue=+16.7%
EPS next Year (2027-05-31): EPS=5.91 | Chg7d=-0.001 | Chg30d=-0.005 | Revisions Net=+1 | Growth EPS=+7.7% | Growth Revenue=+5.9%
[Analyst] Revisions Ratio: +0.87 (14 Up / 1 Down within 30d for Current Year)
[Growth] Implied Growth Rate = 2.9% (Discount Rate 7.9% - Earnings Yield 5.1%)
[Growth] Growth Spread = +3.0% (Analyst 5.9% - Implied 2.9%)

Additional Sources for PAYX Stock

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