Stock Analysis
Paychex IncPAYX
P/E 22.00×· 5Y range 18.85–38.97×· bottom 8% of history
Sector: Technology · Industry: Services-Engineering, Accounting, Research, Management
AnalystsHold24 analystsP/E 22.0× sits at the 8th percentile of its 5.086926762491444-year history.
Cash covers 38% of debt · Q3 2026.
PMP Verdict
Strong business, attractive price
Strengths
- Profitability100
- Quality100
High-quality business at an attractive price.
Bull Case
- ✓Piotroski F-Score 8/9 — high earnings quality
- ✓ROE 45.0% — efficient capital deployment
- ✓Interest coverage 12.2× — debt well covered
- ✓P/E 22.0× at bottom 8% of 5-year history
What's happening with PAYX
Profile
Strong profitability, earnings quality and moat.
How is each axis scored?
- Valuation69/100 · Moderate
- P/E vs own history (8th pct)25/25
- FCF yield (5.1%)20/25
- P/S (6.0x)12/25
- EV/EBIT (16.4x)12/25
- Growth56/100 · Moderate
- Revenue CAGR (9.0%)12/25
- Net income CAGR (6.0%)12/25
- EPS CAGR 5Y (6.3%)12/25
- Fwd implied growth (17.1%)20/25
- Profitability100/100 · Strong
- ROIC (30.0%)25/25
- ROE (45.0%)25/25
- Net margin (27.4%)25/25
- Operating margin (39.2%)25/25
- Financial Health67/100 · Moderate
- Altman Z (2.73)18/25
- Current ratio (1.26)12/25
- Interest coverage (12.2x)25/25
- Net cash / debt (D/A 16%)12/25
- Quality100/100 · Strong
- Piotroski F (8/9)25/25
- Beneish M (-7.10)25/25
- FCF conversion (112%)25/25
- Margin stability (σ 2.7%)25/25
- Moat100/100 · Strong
- ROIC >12% years (9/9 yrs)25/25
- Median gross margin (71.0%)25/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst 25.9%)25/25
About Paychex Inc
Paychex is a cloud-based human capital management provider offering payroll, compliance, talent management, benefits administration, and retirement services. Show more
The firm also provides HR outsourcing services, including professional employer organization, or PEO, offerings, enabling clients to reduce HR overhead. Paychex primarily targets small and midsize businesses, although its acquisition of Paycor in 2025 signals the firm's aspirations to expand into the midmarket segment, serving firms with more than 100 employees. As of fiscal 2026, Paychex has approximately 800,000 clients and manages payroll for one in 11 workers in the United States.
Headquarters: ROCHESTER, NY · Employees: 17,600 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
69BP/E (TTM)22.0xB
Grade B: FairPrice / TTM EPS (own statements) — vs own 5Y history: 18.9x–39.0x · 8th pct
P/FCF19.9xB
Grade B: FairPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield5.1%A
Grade A: ValueTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 2.5%–6.8% · 89th pct
P/S (TTM)6.02xC
Grade C: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 4.9x–11.5x · 9th pct
EV/EBIT16.4xB
Grade B: FairEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 14.4x–29.3x · 7th pct
EV/Sales6.6xC
Grade C: ExpensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E18.8xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio9.90xD
Grade D: Very expensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio1.70B
Grade B: FairFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield4.11%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio90.0%C
Grade C: HighDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
100A+ROIC30.0%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE45.0%A
Grade A: StrongReturn on Equity. Neg. equity = heavy buybacks
ROA11.0%A
Grade A: StrongReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin27.4%A
Grade A: HighNet Income / Revenue
Operating Margin39.2%A
Grade A: HighTTM EBIT / TTM Revenue
Gross Margin74.4%A
Grade A: PremiumGross Profit / Revenue
FCF Margin30.5%A
Grade A: HighFCF / Revenue
True FCF Margin29.2%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
56CRevenue CAGR9.0%C
Grade C: OkCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR6.0%C
Grade C: OkCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)6.3%C
Grade C: OkCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth17.1%C
Grade C: MedAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-1.9%B
Grade B: FlatShare count change over 5Y
SBC / Net Income4.9%A
Grade A: LowStock-based comp/Net income. >30% = dilution risk
SBC / Revenue1.3%A
Grade A: LowTTM stock-based comp / TTM Revenue
Financial Health
67BAltman Z-Score2.73C
Grade C: Gray zoneBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio1.26xC
Grade C: OkCurrent Assets/Liabilities
Quick Ratio1.21xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage12.2xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt Repayment1.4yA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBIT1.1xA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity1.13xC
Grade C: MedDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.38xC
Grade C: PartialCash covers how much of total debt. >1 = could repay all debt from cash
Quality
100A+Piotroski F-Score8/9A
Grade A: StrongFinancial strength 0–9. >7 Strong
Beneish M-Score-7.10A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion111.7%A
Grade A: StrongFCF / Net Income
Margin Stability2.7%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue3.6%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.40xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
ANTE ADAM BROOKS Filed | ANTE ADAM BROOKS | Tax withholding | -1762 | |
BERGSTROM RYAN NORMAN Filed | BERGSTROM RYAN NORMAN | Tax withholding | -1393 | |
GOLISANO B THOMAS Filed | GOLISANO B THOMAS | Gift | -334 | |
Simmons Christopher C Filed | Simmons Christopher C | Tax withholding | -130 | |
Schrader Robert L. Filed | Schrader Robert L. | SellOpen market sale | -2600 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
DOODY JOSEPH Filed | DOODY JOSEPH | BuyJ | +164 | |
DOODY JOSEPH Filed | DOODY JOSEPH | SellJ | -164 | |
Simmons Christopher C Filed | Simmons Christopher C | SellOpen market sale | -2615 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
100A+ROIC >12% Years9/9 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)71.0%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor25.9%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$5.07
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$2.62
Cash & short-term investments per share (Finnhub)
Book Value / Share$10.41
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$4.55B
Total debt obligations (short + long term)
Cash & Equiv.$1.74B
Cash and short-term investments
Net Debt$2.81B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$4.01B
Shareholders' equity (book value)
Asset / Liability1.30xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$39.74B
Current Market Capitalization
Beta0.84B
Grade B: MarketPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Aug 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Paychex Inc (PAYX)
PAYX is up 0.77% at the last close. Paychex Inc meets 8 of 9 Piotroski F-Score criteria, placing its fundamental strength in the top tier of US-listed stocks. Altman Z-Score of 2.73 falls in the grey zone (1.81–2.99) — financial distress is unlikely but not ruled out. Beneish M-Score of -7.10 suggests a low likelihood of earnings manipulation.
- Paychex Inc converts about 31% of revenue into free cash flow — strong cash generation.
- Takes ~1.4 years to repay net debt from free cash flow.
- Return on equity of 45.0% is well above the market average.
- The stock currently yields 4.1% in dividends.
See how PAYX ranks on the Capex Tracker — top 50 capital spenders compared.
Earnings
View earnings calendar →Recent Earnings Results
| Date | Time | EPS Est. | EPS Actual | Surprise | Rev Est. | Rev Actual |
|---|---|---|---|---|---|---|
| Sep 23, 2026 | Pre-Mkt | $1.35 | $1.34 | -0.5% | $1.7B | $1.6B |
Recent Market Moves
See all PAYX moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Sep 23 | Pre-market | 106.50 | -7.01% | -4.86 |
| Sep 23 | Regular | 105.42 | -7.95% | -5.58 |
| Sep 23 | After-hours | 105.25 | -8.10% | -5.70 |
Frequently Asked Questions about PAYX
What is the current Paychex Inc (PAYX) stock price?
PAYX is trading at $111.63 at the last market close, up 0.77% on the session. PreMarketPrice tracks PAYX pre-market, intraday and after-hours prices.
Is PAYX stock a buy right now?
PreMarketPrice's quantitative model rates Paychex Inc's financial health at 67/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is PAYX stock overvalued?
Paychex Inc trades at a trailing P/E of 22.0 and our valuation score rates it 69/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Paychex Inc report earnings?
No confirmed earnings date is currently scheduled for PAYX. The Earnings section lists recent reports and updates as dates are announced.
What sector does Paychex Inc operate in?
Paychex Inc operates in the Technology sector, within the Services-Engineering, Accounting, Research, Management industry. The Related Stocks section lists sector peers for comparison.
What does Paychex Inc do?
Paychex is a cloud-based human capital management provider offering payroll, compliance, talent management, benefits administration, and retirement services.
About Paychex Inc (PAYX) Stock
Paychex Inc (PAYX) is a US-listed stock operating in the Technology sector, specifically the Services-Engineering, Accounting, Research, Management industry. As of the latest update, Paychex Inc is trading at $111.63, up 0.77% on the day with a market capitalization of $39.7 billion. The financial health score for PAYX is 67/100, which indicates good financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for PAYX stock.
PAYX Stock Analysis & Key Metrics
On PreMarketPrice, you can track Paychex Inc (PAYX) across multiple dimensions:
- Pre-market price & movement: Real-time PAYX stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Earnings calendar: Upcoming and past earnings reports for PAYX, including EPS estimates, actual results, and surprise percentages.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for PAYX with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Paychex Inc across multiple reporting periods.
- Financial health score: A composite score of 67/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for PAYX.
- Sector peers: Compare PAYX against 4 other technology stocks on key financial metrics.
Is PAYX a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Paychex Inc (PAYX) as an investment. The financial health score of 67/100 suggests good financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average. Earnings data reveals whether the company is meeting or beating analyst expectations.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Paychex Inc (PAYX) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.