(PAYX) Paychex - Overview
Exchange: NASDAQ •
Country: United States •
Currency: USD •
Type: Common Stock •
ISIN: US7043261079
Stock: Payroll, HR Services, Benefits, Insurance
Total Rating 38
Risk 78
Buy Signal -0.81
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 4.15% |
| Yield on Cost 5y | 5.44% |
| Yield CAGR 5y | 12.87% |
| Payout Consistency | 98.2% |
| Payout Ratio | 86.4% |
| Risk 5d forecast | |
|---|---|
| Volatility | 24.0% |
| Relative Tail Risk | -4.99% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -1.56 |
| Alpha | -42.80 |
| Character TTM | |
|---|---|
| Beta | 0.585 |
| Beta Downside | 0.550 |
| Drawdowns 3y | |
|---|---|
| Max DD | 37.50% |
| CAGR/Max DD | -0.05 |
Description: PAYX Paychex January 29, 2026
Paychex, Inc. (NASDAQ: PAYX) delivers end-to-end human capital management (HCM) services-including payroll processing, tax administration, benefits, HR, and insurance-to small- and medium-sized enterprises across the United States, Europe, and India. Its product suite spans everything from recruiting and talent acquisition to retirement plan administration and digital wage-advance marketplaces, sold primarily through a direct sales force.
As of FY 2024, Paychex reported $5.1 billion in revenue (up 6 % YoY) and a diluted EPS of $7.10, with an operating margin of roughly 20 %. The firm now processes over $1.2 trillion in payroll annually for more than 670 k client firms, and its ARR (annual recurring revenue) grew 8 % year-over-year. Macro-level drivers include a 2 % YoY rise in U.S. small-business employment and tightening payroll-tax compliance regulations, both of which bolster demand for outsourced HCM solutions.
For a deeper quantitative dive, explore the PAYX analytics page on ValueRay to see how these trends translate into valuation metrics.
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 February 08, 2026, the stock is trading at USD 98.53 with a total of 3,403,524 shares traded.
Over the past week, the price has changed by -4.46%, over one month by -10.49%, over three months by -10.91% and over the past year by -31.55%.
Over the past week, the price has changed by -4.46%, over one month by -10.49%, over three months by -10.91% and over the past year by -31.55%.
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 | 119.9 | 21.7% |
| Analysts Target Price | 119.9 | 21.7% |
| ValueRay Target Price | 90.2 | -8.5% |
PAYX Fundamental Data Overview February 03, 2026
P/E Trailing = 23.1278
P/E Forward = 19.3424
P/S = 6.1366
P/B = 9.4578
P/EG = 2.0146
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 = 40.49b USD (37.03b + Debt 5.04b - CCE 1.57b)
Interest Coverage Ratio = 10.38 (Ebit TTM 2.32b / Interest Expense TTM 223.0m)
EV/FCF = 19.68x (Enterprise Value 40.49b / FCF TTM 2.06b)
FCF Yield = 5.08% (FCF TTM 2.06b / Enterprise Value 40.49b)
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 = 2.45 (Enterprise Value 40.49b / 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 = 7.23% (E(37.03b)/V(42.06b) * Re(8.07%) + D(5.04b)/V(42.06b) * Rd(1.36%) * (1-Tc(0.24)))
Discount Rate = 8.07% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -0.14%
[DCF Debug] Terminal Value 82.27% ; FCFF base≈1.86b ; Y1≈2.06b ; Y5≈2.66b
Fair Price DCF = 141.5 (EV 54.29b - Net Debt 3.50b = Equity 50.79b / Shares 359.0m; r=7.23% [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 current Year (2026-05-31): EPS=5.49 | Chg30d=-0.002 | Revisions Net=+13 | Growth EPS=+10.2% | Growth Revenue=+16.7%
EPS next Year (2027-05-31): EPS=5.91 | Chg30d=-0.004 | Revisions Net=+1 | Growth EPS=+7.7% | Growth Revenue=+5.9%
P/E Forward = 19.3424
P/S = 6.1366
P/B = 9.4578
P/EG = 2.0146
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 = 40.49b USD (37.03b + Debt 5.04b - CCE 1.57b)
Interest Coverage Ratio = 10.38 (Ebit TTM 2.32b / Interest Expense TTM 223.0m)
EV/FCF = 19.68x (Enterprise Value 40.49b / FCF TTM 2.06b)
FCF Yield = 5.08% (FCF TTM 2.06b / Enterprise Value 40.49b)
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 = 2.45 (Enterprise Value 40.49b / 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 = 7.23% (E(37.03b)/V(42.06b) * Re(8.07%) + D(5.04b)/V(42.06b) * Rd(1.36%) * (1-Tc(0.24)))
Discount Rate = 8.07% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -0.14%
[DCF Debug] Terminal Value 82.27% ; FCFF base≈1.86b ; Y1≈2.06b ; Y5≈2.66b
Fair Price DCF = 141.5 (EV 54.29b - Net Debt 3.50b = Equity 50.79b / Shares 359.0m; r=7.23% [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 current Year (2026-05-31): EPS=5.49 | Chg30d=-0.002 | Revisions Net=+13 | Growth EPS=+10.2% | Growth Revenue=+16.7%
EPS next Year (2027-05-31): EPS=5.91 | Chg30d=-0.004 | Revisions Net=+1 | Growth EPS=+7.7% | Growth Revenue=+5.9%