Paychex Inc (PAYX)
Industrials · Human Resource & Employment Services · US stock · S&P 500 component
$111.63
▲ +0.85 (0.77%)
Fair valueFair
$144 +29.4% to fair value
$72fair band $101–$188$217
Day's range
$109.87 – $112.52
52-week range
$83.50 – $127.98
About Paychex Inc
Paychex provides payroll processing and human resources outsourcing services, mainly to small and mid-sized businesses in the United States. Its offerings cover payroll, benefits administration, retirement plans, insurance services and workforce management software. Revenue comes largely from recurring service fees charged per payroll run or per employee, plus interest earned on client funds held between collecting taxes and payments and passing them on to the proper recipients.
Over the last twelve months Paychex Inc reported revenue of $6.6 billion, which expanded at 9.2% a year across three years. Its operating margin is 39.2% and its return on invested capital is 27%. Leverage, measured as net debt to EBITDA, is 1.2 times. Shareholders receive a dividend, yielding 4.1%. The X-Ray Score is 68 out of 100, a summary of these measures.
Written with AI from public information and the filing figures on this page, then checked automatically for unsupported numbers. It can contain mistakes: read the company's own filings below before relying on it.
Price chart
52-wk range $83.50 – $127.98Volume 5,508,800Daily, split-adjusted
Vitals
Market cap$39.8B
52-week range$83.50 – $127.98
Volume (last day)5,508,800
P/E (TTM)22.2
EBIT / EV yield6.0%
Free-cash-flow yield5.1%
Dividend yield4.1%
Revenue (TTM)$6.6B
Net income (TTM)$1.8B
Operating margin39.2%
Return on capital26.8%
Debt incl. leases$4.6B
Cash & securities$934M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies like Apple). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$144model spread $136 – $157
Fair
+29.4% to fair value
Equal blend of three models: peer multiples, a fundamentals-adjusted multiple (growth, ROIC and margin) and a 10-year DCF scaled to the market's average. Earnings-power value (no growth) is a floor and not part of the blend. Model uncertainty is Medium, so the safety margin is 30%.
Price $112
Undervalued < $101Fair $101 – $188Overvalued > $188
10-year DCF (market-scaled)
$163
Peer multiples
$144
Earnings power floor (not blended)
$57
Fundamentals-adjusted multiple
$125
Growth the price implies
8.6%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.09%, equity risk premium 4.23% (Damodaran). How it works.
What this means
Average business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Industrials peers. Open a lens to see the numbers behind it.
Valuation
Strong
73/100
Cheap against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield6.0%
Free-cash-flow yield5.1%
Fair value vs price1.3×
Growth
Fair
67/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)9.2%
EPS growth (3y)4.4%
Growth consistency100%
Profitability
Strong
73/100
Earns high returns on the capital it uses.
See the numbers →
Return on invested capital26.8%
Operating margin39.2%
Gross profitability31.4%
Financial health
Fair
58/100
Balance sheet is in typical shape for its sector.
See the numbers →
Piotroski F-Score8 / 9
Net debt / EBITDA1.2×
Interest cover9.7×
Dividends
Fair
61/100
Dividend is typical for its sector.
See the numbers →
Dividend yield4.1%
Dividends vs free cash flow80%
Dividend growth10.6%
Quarterly results: last 6 quarters
+10.2%
May '25
+16.8%
Aug '25
+18.3%
Nov '25
+19.9%
Feb '26
+12.5%
May '26
+5.9%
Aug '26
Revenue against the same quarter a year earlier. Latest quarter revenue $1.6B, diluted EPS $1.21.
Compare with peers
ADP Automatic Data Process...65Other Human Resource & Employment Services companies by X-Ray Score.
Fundamentals checklist
● 10 Good · ● 5 Average · ● 1 BadCash quality
Earnings backed by cashAverage
Free-cash-flow yieldGood
Risk models
Altman Z''Average
Piotroski F-ScoreGood
Growth
EPS growth (3y)Average
Free-cash-flow growth (3y)Average
Revenue growth (3y)Good
Growth consistencyGood
Balance sheet
Current ratioAverage
Net debt / EBITDAGood
Interest coverBad
Valuation
Fair value vs priceGood
EBIT / EV yieldGood
Profitability
Return on invested capitalGood
Operating marginGood
Gross profitabilityGood
Each check is graded against the company's sector, not a fixed number. Checklist score 65/100.
Financials
| FY22 | FY23 | FY24 | FY25 | FY26 | |
|---|---|---|---|---|---|
| Revenue | $4.6B | $5.0B | $5.3B | $5.6B | $6.5B |
| Operating income | $1.8B | $2.0B | $2.2B | $2.2B | $2.5B |
| Net income | $1.4B | $1.6B | $1,690 | $1.7B | $1.8B |
| Operating cash flow | $1.6B | $1.7B | $1.9B | $1.9B | $2.6B |
| Operating margin | 39.9% | 40.6% | 41.2% | 39.6% | 38.6% |
| Free cash flow | $1.5B | $1.6B | $1.7B | $1.7B | $2.3B |
| Diluted EPS | $3.84 | $4.30 | $4.67 | $4.58 | $4.89 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
10 bullish · 1 neutral · 5 bearish
Weekly
Neutral
6 bullish · 1 neutral · 5 bearish
Monthly
Neutral
3 bullish · 1 neutral · 4 bearish
Moving averages (daily)
| SMA 10 | 105.2 | Bullish |
| EMA 10 | 106.8 | Bullish |
| SMA 20 | 104.3 | Bullish |
| EMA 20 | 107.1 | Bullish |
| SMA 50 | 114.5 | Bearish |
| EMA 50 | 109.9 | Bullish |
| SMA 100 | 109.8 | Bullish |
| EMA 100 | 108.9 | Bullish |
| SMA 200 | 102.0 | Bullish |
| EMA 200 | 108.3 | Bullish |
Oscillators (daily)
| RSI (14) | 58.56 | Neutral |
| MACD (12, 26) | -1.41 | Bearish |
| Momentum (12) | 13.33 | Bullish |
| Stochastic %K (14) | 93.87 | Bearish |
| Williams %R (14) | -6.13 | Bearish |
| CCI (20) | 112.2 | Bearish |
Pivot points (classic, last session)
S3 107.5 | S2 108.7 | S1 110.2 | Pivot 111.3 | R1 112.8 | R2 114.0 | R3 115.5 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
4.54 USD
Yield on today's price
4.07%
Frequency
Quarterly
Next ex-dividend date
26 Oct 2026
| Ex-dividend date | Amount per share |
|---|---|
| 26 Oct 2026 (upcoming) | 1.1900 |
| 28 Jul 2026 | 1.1900 |
| 13 May 2026 | 1.1900 |
| 28 Jan 2026 | 1.0800 |
| 7 Nov 2025 | 1.0800 |
| 21 Jul 2025 | 1.0800 |
| 12 May 2025 | 1.0800 |
| 7 Feb 2025 | 0.9800 |
| 7 Nov 2024 | 0.9800 |
| 8 Aug 2024 | 0.9800 |
| 9 May 2024 | 0.9800 |
| 12 Feb 2024 | 0.8900 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
PAYX SEC filings
16 Oct 2026
8-KSEC EDGAR
Shareholder vote results
24 Sep 2026
10-QSEC EDGAR
Quarterly report
23 Sep 2026
8-KSEC EDGAR
Results of operations
4 Sep 2026
DEF 14ASEC EDGAR
Proxy statement
21 Jul 2026
8-KSEC EDGAR
Director or officer change
17 Jul 2026
10-KSEC EDGAR
Annual report
24 Jun 2026
8-KSEC EDGAR
Results of operations
26 Mar 2026
10-QSEC EDGAR
Quarterly report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.