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Paychex (PAYX) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Paychex
NasdaqGS•Technology•Software - Application
$115.49+3.37(0.03%)After hours
Market Cap
$40.98B
P/E
22.7x
P/S
6.2x
P/B
11.1x

Paychex, Inc., together with its subsidiaries, provides human capital management solutions (HCM) for human resources, payroll processing, employee benefits, and insurance services for small to medium-sized businesses in the United States, Europe, Canada, India, and Israel. It offers technology and advisory solutions; and payroll tax administration services. The company also provides retirement solutions, such as plan implementation, ongoing compliance with government regulations, employee and employer reporting, participant and employer online access, electronic funds transfer, and other administrative services; HCM solutions from recruiting and hiring to retirement; and talent management and talent acquisition services. In addition, it offers payroll solutions, including calculation, preparation, and delivery of employee payroll checks; production of internal accounting records and management reports; preparation of federal, state, and local payroll tax returns; and collection and remittance of clients' payroll obligations. Further, the company provides workforce management solutions; benefits administration solutions; digital marketplace for earned wages, financial wellness solutions, and voluntary lifestyle benefits; administrative services organization HR outsourcing solutions; solutions to payroll and non-payroll customers; retirement and funding solutions; and insurance services for property and casualty coverage, such as workers' compensation, business-owner policies, cyber security protection, and commercial auto, as well as health and benefits coverage, including health, dental, vision, and life. Additionally, it offers payroll, HR, employee benefits administration, retirement, insurance, risk management outsourcing, and access to professionally trained HR representatives, virtually and on-site. It markets and sells its solutions primarily through its direct sales force. Paychex, Inc. was founded in 1971 and is headquartered in Rochester, New York.

A

How this company scores

ExcellentMetricSide Score: 81/100

Strongest: Profitability (25/25); weakest: Balance Sheet & Red Flags (12/25).

Profitability25/25
Growth21/25
Balance Sheet & Red Flags12/25
Cash & Earnings Quality23/25
Strengths
Strong marginsHigh ROECash-backed earningsConsistent free cash flow

No red flags in the last 8 quarters.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 22.7x5y range 19.7x – 34.9x
P/E 22.7x · near its 20-quarter median

Currently near its 20-quarter median.

P/S · 6.2x5y range 5.3x – 10.3x
P/S 6.2x · below its 20-quarter median

Currently below its 20-quarter median.

P/B · 11.1x5y range 8.4x – 14.5x
Price & Volume
Market Cap $40.98B

Metrics at a Glance

as of August 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$6.60B
7Q
Q. Revenue
$1.63B
6%
TTM EBITDA
$3.25B
5Q
TTM Op. Income
$2.59B
4Q
Q. Op. Income
$619.20M
14%
TTM Net Income
$1.81B
3Q
Q. Net Income
$429.70M
12%
EPS
$1.21
13%
Shares Out.
$355.80M
5Q
$6.60B in TTM revenue grew 14.0% YoY, reaching $1.63B last quarter. TTM EBITDA of $3.25B and TTM operating income of $2.59B show growth is flowing through to the bottom line. TTM net income of $1.81B means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
73.6%
2Q
EBITDA Margin
44.7%
6%
Op. Margin
38.0%
8%
Net Margin
26.4%
6%
Op. margin of 38.0% is up 2.8% YoY — cost efficiency is improving. Net margin at 26.4% and gross margin of 73.6% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 8% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
22.7x
27%
P/S Ratio
6.2x
2Q
P/B Ratio
11.1x
2Q
At 22.7x P/E, the stock trades within typical market levels. P/S of 6.2x and P/B of 11.1x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 27% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$15.66B
2Q
Cash
$600.90M
2Q
Long-Term Debt
$4.56B
7Q
Book Value
$3.71B
2Q
D/E Ratio
1.2
2Q
Debt/EBITDA
6.3
11%
With $15.66B in assets and $4.56B in long-term debt, D/E is 1.2and book value is $3.71B — moderate leverage. Across the last 8 quarters, debt/equity has risen for 2 consecutive quarters — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$413.50M
2Q
TTM Free Cash Flow
$2.02B
8%
FCF Margin
30.5%
5%
FCF / Net Income
1.1
3%
TTM FCF of $2.02B on $413.50M in operating cash flow. The FCF / Net Income ratio of 1.1x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 8% — a weakening trend.

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· near its 20-quarter median

Currently near its 20-quarter median.