PAYX
Paychex
$95.93
▼ 2.4%Updated Today 6:01 PM ET
▼ Down 34.6% over the last 12 months
Market Cap
$35.20B
P/E
21.57x
Forward P/E (est.)
22.87x
ROE
40.9%
Revenue Growth
16.4%
EPS Growth
-5.7%
Profit Margin
25.8%
FCF Yield
4.9%
Debt / Equity
1.2x
ROIC
19.0%
Interest Coverage
59.19x
Current Ratio
1.26x
Dividend Yield
4.7%
Implied Growth (rev. DCF)
4.0%
Rating Score
68/100
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what PAYX's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. PAYX trades near $95.93, around its 50-day average ($94.35) and 200-day average ($106.92). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 54 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. PAYX's is $3.20 (~3.3% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month PAYX found buyers near $91.67 (support) and sellers near $103.30 (resistance); its 52-week range is $85.45–$154.29. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.2× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
Paychex (PAYX) is a large-cap company in the Human Resource & Employment Services industry, part of the Industrials sector of the S&P 500, with a market value around $35.20B.
In its latest reported year it generated about $5.41B in revenue.
Our model rates PAYX Favorable (68/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
4Y CAGR
7.9%
Revenue moved from $4.00B in 2021 to $5.41B in 2025, a 7.9% compound annual growth rate. The most recent year grew a strong 16.4% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
91.4%
Operating Margin
40.8%
Net Margin
25.8%
ROE
40.9%
Paychex keeps about 25.8% of each sales dollar as net profit, with a 91.4% gross margin and 40.8% operating margin. Return on equity is 40.9% and return on invested capital about 19.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
$4.95B
Net Debt
$3.21B
Net Debt / EBITDA
1.45x
Debt / Equity
1.2x
Leverage: debt-to-equity is 1.2x, and operating profit covers interest about 59.2x, with a current ratio of 1.3x. That is a moderate, manageable debt load for most businesses. It carries roughly $4.95B of total debt against $1.74B of cash.
Operating CF
$1.90B
Free Cash Flow
$1.71B
FCF Margin
31.6%
In the latest year Paychex produced about $1.90B of operating cash flow and $1.71B of free cash flow after capital spending. That is a free-cash-flow yield of about 4.9% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
P/E
21.57x
P/S
6.47x
P/B
13.47x
EV / EBITDA
16.19x
PAYX trades at 21.6x trailing earnings (about 22.9x on estimated forward earnings), 6.5x sales, and 13.5x book value. Reverse-engineering today's price implies the market expects roughly 4.0% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
How PAYX stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.
In the Industrials sector (80 S&P 500 companies), PAYX ranks #3 of 80 by our overall rating. It trades at a discount versus the sector on earnings (21.6x P/E vs. 30x median) with a higher return on equity (40.9% vs. 24.7%) and faster revenue growth (16.4% vs. 5.0%).
P/E vs sector
21.6x
median 30x
ROE vs sector
40.9%
median 24.7%
Growth vs sector
16.4%
median 5.0%
Sector rank
#3
of 80 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 80 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$107.19 – $181.40
vs. $95.93 today · expected CAGR 2% – 14%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $6.28B | $7.28B | $8.44B | $9.80B | $11.36B |
| Net income | $1.63B | $1.89B | $2.20B | $2.55B | $2.95B |
| EPS | $4.55 | $5.28 | $6.13 | $7.11 | $8.25 |
| Share price (low) | $59.20 | $68.67 | $79.66 | $92.41 | $107.19 |
| Share price (high) | $100.19 | $116.22 | $134.81 | $156.38 | $181.40 |
| CAGR (low–high) | -38% / 4% | -15% / 10% | -6% / 12% | -1% / 13% | 2% / 14% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for PAYX:
- Revenue is growing 16.4% a year, a sign of real demand.
- High net margins (25.8%) point to pricing power or efficiency.
- Strong return on equity (40.9%) shows capital is put to work well.
- Healthy free-cash-flow yield (~4.9%) funds buybacks and dividends.
- Pays a 4.7% dividend on top of any price gains.
- Our model's overall read is Favorable (68/100).
The case against PAYX:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Balance-sheet risk — debt/equity of 1.2x magnifies the impact of higher rates or weaker earnings.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: Paychex is a large-cap industrials business still growing nicely, with solid profitability, and a heavier debt load to watch. It trades at 21.6x earnings, which our model scores Favorable (68/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.