# Paychex Inc. (PAYX) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Industrials / Professional Services. Price $121.71, market value $43.3 billion.

## Valuation
- **P/E (trailing): 24.9×** (5-yr avg 25.2×, 3-yr avg 25.4×). Paychex Inc. trades at 24.9× trailing earnings, close to its own five-year average of 25.2×. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 19.0×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 2.81**. A PEG of 2.81 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 6.8×**. Each dollar of revenue is priced at 6.8×.
- **Price / book: 11.6×**. The shares trade at 11.6× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 15.8×**. Enterprise value is 15.8× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 5.4%** (5-yr avg 4.5%). Free cash flow equals 5.4% of the market value, in line with its five-year average of 4.5%. Above 5% is generally attractive.
- **Earnings yield: 4.0%**. The inverse of the P/E: 4.0% of the price is earned each year.

## Profitability
- **Operating margin: 39.5%**. 39.5% of revenue is left after running the business, an exceptional level.
- **Net margin: 27.0%**. 27.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 47.1%**. 47.1% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 27.5%**. Return on all capital, debt included, is 27.5%: comfortably above what that capital costs.
- **Return on assets: 10.9%**. Each dollar of assets produces 10.9% of profit.

## Growth
- **Revenue growth (1 yr): 20.4%** (3-yr 9.9%/yr, 5-yr 10.3%/yr). Revenue grew 20.4% over the last year, against 10.3% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 6.8%** (3-yr 4.4%/yr, 5-yr 10.0%/yr). Earnings per share rose 6.8%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 14.1%/yr**. Free cash flow has compounded at 14.1% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 1.22**. Debt is 1.22 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 1.2×**. It would take 1.2 years of operating earnings to repay net borrowings, within the comfortable range.
- **Current ratio: 1.26** (quick 1.26). Current assets cover the next year's liabilities 1.26 times.
- **Altman Z-score: 3.46**. A Z-score of 3.46 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.91%** ($4.76 per share, trailing). Paychex Inc. yields 3.91%, an income-level yield.
- **Payout ratio: 90%** (68% of free cash flow). 90% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 12**. 12 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 11.2%/yr** (1-yr 10.2%). The dividend has compounded at 11.2% a year over five years, doubling roughly every 6 years at that pace.

## Price and momentum
- **Total return (1 yr): -7.5%** (YTD 12.2%, 3-mo 22.3%). The shares are down 7.5% over twelve months including dividends.
- **From 52-week high: -10.5%** (42.4% above the low). Trading 10% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 51**. An RSI of 51 is neutral.
- **Beta (1 yr): 0.03** (volatility 28%). Beta of 0.03 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=PAYX · Page: https://foliofundamentals.com/stocks/payx

Not investment advice.