Stock · PAYX · Technology
United States · Large Cap · listed since 1990 · Revenue 12 mo. $6.6B
Price as of 11/06/2026
Paychex, Inc., together with its subsidiaries, provides human capital management solutions (HCM) for human resources, payroll processing, employee benefits, and insurance services for small to medium-sized businesses in the United States, Europe, Canada, India, and Israel.
Paychex, Inc., together with its subsidiaries, provides human capital management solutions (HCM) for human resources, payroll processing, employee benefits, and insurance services for small to medium-sized businesses in the United States, Europe, Canada, India, and Israel. It offers technology and advisory solutions; and payroll tax administration services. The company also 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; administrative services organization HR outsourcing solutions; solutions to payroll and non-payroll customers; retirement and funding solutions; 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, HR, employee benefits administration, retirement, insurance, risk management outsourcing, and access to professionally trained HR representatives, virtually and on-site. It markets and sells its solutions primarily through its direct sales force. Paychex, Inc. was founded in 1971 and is headquartered in Rochester, New York.
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Summary
58.5 of 100
Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.
Analysis
What the price requires
If free cash flow stays at €2.1B (2026), it supports €23.2B. The remaining €13.2B of the market value assume it grows 6.3% a year for 10 years and not at all afterwards.
Required FCF growth per year
6.3%
no growth afterwards
Price to operating cash flow 18.5×, below its usual range.
Middle half of 20 quarters: 21.1× to 27.5×, median 24.2×.
Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.
with respect to the priced-in expectation
with respect to the priced-in expectation
No anomaly in the stored figures.
Since the last quarter
Q2 → Q3 2026
5 more unchanged: Revenue, 12 mo., Gross margin, EBIT margin, Shares outstanding, Return on equity
Derivation
Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.
Price as of 11/06/2026.
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Return on equity | 47.12% | 14.60% | Rank 90 |
| Return on capital (Greenblatt) | 103.50% | 29.77% | Rank 82 |
| EBIT margin | 38.55% | 17.40% | Rank 91 |
| FCF margin | 35.65% | 18.54% | Rank 90 |
| Gross margin | 74.29% | 48.47% | Rank 81 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Revenue growth, 1 year | 16.88% | 12.70% | Rank 63 |
| Earnings growth, 3 years per year | 4.39% | 9.54% | Rank 36 |
| Earnings growth, 5 years per year | 10.04% | 14.07% | Rank 33 |
| Sustainable growth (ROE × retained earnings) | 3.61% | 2.87% | Rank 57 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Earnings yield | 4.18% | 2.64% | Rank 70 |
| FCF yield | 5.74% | 3.06% | Rank 78 |
| EV/saleslower is better | 6.74 | 5.18 | Rank 38 |
| EV/EBITlower is better | 17.49 | 26.24 | Rank 67 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Share price, 1 year | −5.85% | −0.59% | Rank 41 |
| Share price, 6 months | 25.11% | −4.46% | Rank 79 |
| Share price, 3 months | 2.65% | −5.84% | Rank 64 |
| Distance from 52-week high | −8.07% | −33.23% | Rank 89 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Accruals (Sloan)lower is better | 2.17% | 1.65% | Rank 47 |
| Change in share countlower is better | −0.55% | −0.17% | Rank 60 |
| Dividend streak in years | 12 | 8 | Rank 77 |
| Price reaction to results, market-adjusted | −7.73% | −1.57% | Rank 18 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Equity ratio | 23.09% | 53.98% | Rank 16 |
| Net debt/EBITDAlower is better | 1.15 | −0.20 | Rank 21 |
| Debt to equitylower is better | 1.24 | 0.33 | Rank 12 |
| Volatility, 1 yearlower is better | 30.88% | 50.37% | Rank 93 |
Ten years in figures
| Year | Revenue, $B | EBIT margin | FCF | Shares | Net debt |
|---|---|---|---|---|---|
| 2017 | 3.2 | 39.3% | $866.1M | 363M | −$184.6M |
| 2018 | 3.4 | 38.1% | $1.1B | 362M | −$358.2M |
| 2019 | 3.8 | 36.4% | $1.2B | 362M | $135.8M |
| 2020 | 4.0 | 36.2% | $1.3B | 361M | −$6.4M |
| 2021 | 4.1 | 36.0% | $1.1B | 362M | −$69.2M |
| 2022 | 4.6 | 39.9% | $1.4B | 363M | $511.2M |
| 2023 | 5.0 | 40.6% | $1.6B | 362M | −$356.3M |
| 2024 | 5.3 | 41.2% | $1.7B | 362M | −$602.6M |
| 2025 | 5.6 | 39.6% | $1.8B | 362M | $3.4B |
| 2026 | 6.5 | 38.6% | $2.3B | 360M | $3.5B |
5 of 7 StockScorer Score rules met · How the score is built
Paychex Inc mainly meets criteria in the Profitability category. Result from 18 strategies checked.
Paychex Inc is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.
5 of 7 rules met
9 of 11 points
Detail data
Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.
With a free account, you can see the match across all strategies checked in one complete overview.
Selected fundamental metrics for Paychex Inc.
| Metric | Stock | Sector |
|---|---|---|
| P/E ratio | 23.9 | 35.1 |
| P/B ratio | 11.3 | 5.5 |
| Return on equity (ROE) | 47.1% | 14.6% |
| Equity ratio | 23.1% | 54.0% |
| Debt-to-equity (D/E) | 1.24 | 0.33 |
| Dividend yield | 4.9% | 0.9% |
How comparable stocks in the same sector score in the StockScorer model.
| Symbol | Company | Rating |
|---|---|---|
| PAYX | Paychex Incthis page | |
| ROP | Roper Technologies Inc | Medium5.5 |
| WDAY | Workday Inc | Low3.6 |
| ADSK | Autodesk Inc | High8.2 |
| ZM | Zoom Video Communications Inc | locked |
| MSTR | MicroStrategy Incorporated | locked |
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Learn more about the metrics in the metrics glossary or all rated stocks in the stock overview.
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