Stock AnalizPaychex Inc. PAYX
Diversified Commercial Services · IPO 1983 · data as of November 13, 2026
Paychex Inc. (PAYX) is a industrial company listed in the US with a market value of about $41.2B. In the twelve months to August 31, 2026 it had revenue of $6.6B and net income of $1.8B, a net margin of 27.4%.
Its overall Stock Analiz score is 3.0 out of 5 (average). The strongest part is track record (5/5); the weakest is value (2/5).
Key numbers: a P/E of 22.9, a price to free cash flow of 20.4, 5-year revenue growth of 10% a year, a 5-year average ROIC of 29%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 4% below the current price.
Score: 3.0 / 5
Checks passed
- P/E below 25
- P/E below the industry median
- Revenue growth above 10% last year
- 3-year free cash flow growth above 10% a year
- 5-year EPS growth above 10% a year
- 5-year revenue growth above 8% a year
- 5-year average ROIC above 12%
- Profitable 5 years in a row
Checks not passed
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- 3-year revenue growth above 10% a year
- Profit margin improving
- Strong R&D investment or growth above 20%
- More cash than debt, or low debt to equity
- Liabilities below 60% of assets
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $6.6B | $6.5B | $5.6B | $5.3B | $5.0B | $4.6B | $4.1B | $4.0B | $3.8B | $3.4B | $3.2B |
| Net income | $1.8B | $1.8B | $1.7B | $1.7B | $1.6B | $1.4B | $1.1B | $1.1B | $1.0B | $994M | $826M |
| Free cash flow | $2.0B | $2.3B | $1.7B | $1.7B | $1.6B | $1.5B | $1.1B | $1.3B | $1.1B | $1.1B | $866M |
| EPS (diluted) | $5.05 | $4.89 | $4.58 | $4.67 | $4.30 | $3.84 | $3.03 | $3.04 | $2.86 | $2.75 | $2.28 |
| Net margin | 27.4% | 27.0% | 29.7% | 32.0% | 31.1% | 30.2% | 27.1% | 27.2% | 27.4% | 29.4% | 26.2% |
| ROIC | — | 22.9% | 18.4% | 35.5% | 35.3% | 35.2% | 28.8% | 30.0% | 30.2% | 41.9% | 37.0% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 14 analysts is $114.57, 1% below the current price; targets range from $96.00 to $150.00; the consensus rating is “none”; expected EPS is $5.96 for the fiscal year ending May 31, 2027.
Frequently asked questions
What is Paychex’s P/E ratio?
About 22.9, based on the last twelve months of diluted earnings per share (forward P/E about 18.2).
Is Paychex stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 4% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Paychex pay a dividend?
Yes. The dividend yield is about 4.13%, and it has paid dividends for 10 years in our data.
Is Paychex a good stock to buy?
We do not give buy or sell advice. Paychex scores 3.0 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.