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Paychex, Inc. PAYX

Indexes indicate stock being part of an index ,
Growth Flags show if company had growth for consecutive years ,
Insider Buys alert about insiders buying in the last 12 month

We limit data available in the Overview Report for users who do not have Powerpack

Get access to target analyst prices, predictions, compound annual growth rates and more than four years of historical data.

Insider Decisions

Total buys
0.20
Total sells
3.78
in millions of $
Nov 25 Feb 26 May 26 Aug 26
Buy 2
Sell 1 1 3
Insider Ownership
11.02%

Capital & Financial Ratios

Market Cap
41,410.00
Revenue
6,512.00
Net Income
1,760.10
Free Cash Flow
2,321.80
Net Debt
3,378.80
Current Ratio
1.26
Debt/Equity
1.22
P/E ratio
23.65
P/S ratio
6.40
P/B ratio
11.16
Past 5Y EPS Growth
10.30%
This Y EPS Growth
8.15%
Next Y EPS Growth
7.59%
Next 5Y EPS Growth
7.33%
in millions of $

Dividends

Payout Ratio
0.76
Annual Dividend Rate
3.56
Annual Dividend Yield
2.84%
total individual payouts
2029 ‡‡‡‡‡
2028 ‡‡‡‡‡
2027 ‡‡‡‡‡
2026 4.43
2025 4.22
2024 3.83
2023 3.46
2022 3.03
2021 2.60
2020 2.48
2019 2.42
2018 2.18
2017 1.92
2016 1.76
predictions in italic, special payouts not included in total or ratios

Assets vs Liabilities

2023 2024 2025 2026
Cash 1,645.20 1,550.60 1,711.00 1,177.30
Receivables 1,426.20 1,625.30 1,975.00 2,207.90
Inventory
Other 4,118.80 3,706.20 4,813.30 4,832.20
7,528.10 7,251.50 8,916.50 8,613.30
2023 2024 2025 2026
Payables 84.70 104.30 129.80 154.80
ST’ Debt 10.20 18.70 418.40
Other 4,689.40 4,338.50 5,419.00 5,521.70
5,805.40 5,309.10 6,956.30 6,840.60
in millions of $

Compound Annual Growth

10y 5y 3y
Sales ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡
Cash Flow ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡
Earnings ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡
Book Value ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡

Revenue

Aug Nov Feb May Year
’26
’26 1,540.00 1,557.60 1,808.90 1,605.50
6,512.00
’25 1,318.50 1,316.90 1,509.00 1,427.30
5,571.70
’24 1,286.00 1,257.90 1,439.30 1,295.10
5,278.30
’23 1,206.20 1,190.30 1,381.00 1,229.60
5,007.10
’22 1,082.90 1,108.50 1,276.00 1,144.30
4,611.70
’21 932.20 983.70 1,111.70 1,029.20
4,056.80
in millions of $

Operating Cash Flow

Aug Nov Feb May Year
’26
’26 718.40 444.90 812.50 580.90
2,556.70
’25 546.10 295.00 716.00 343.80
1,900.90
’24 693.00 311.30 671.70 221.70
1,897.70
’23 364.30 355.40 569.10 417.40
1,706.20
’22 385.60 169.80 612.90 421.40
1,589.70
’21 215.00 215.70 439.90 389.70
1,260.30
in millions of $

Free Cash Flow

Aug Nov Feb May Year
’26
’26 662.50 382.80 761.50 515.00
2,321.80
’25 510.50 248.00 667.30 283.30
1,709.10
’24 654.30 270.60 631.00 180.40
1,736.30
’23 333.70 329.80 545.00 371.40
1,579.90
’22 355.20 135.60 578.20 388.10
1,457.10
’21 194.30 185.60 407.60 358.20
1,145.70
in millions of $

EPS

Aug Nov Feb May Year
’26
’26 1.06 1.10 1.56 1.17
4.89
’25 1.18 1.14 1.43 0.82
4.58
’24 1.16 1.08 1.38 1.05
4.67
’23 1.05 0.99 1.29 0.97
4.30
’22 0.92 0.91 1.19 0.82
3.84
’21 0.59 0.75 0.97 0.73
3.03

Target Price Range

High
‡‡‡‡‡
‡‡‡‡‡
Average
‡‡‡‡‡
‡‡‡‡‡
Low
‡‡‡‡‡
‡‡‡‡

Recommendation Rating

3.1
1
Buy
2
3
Hold
4
5
Sell
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡ 105.66 104.09 114.72 108.00 85.45
Low Price
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 141.92 129.70 150.71 161.24 127.98
High Price
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 16,000 16,600 16,500 19,000 17,600
Employees
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 0.29 0.30 0.32 0.29 0.37
Revenue/Emp
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 4,611.70 5,007.10 5,278.30 5,571.70 6,512.00 ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡
Revenue
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 70.59% 70.98% 71.97% 72.35% 74.29%
Gross Margin
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 1,824.60 2,048.20 2,218.00 2,175.90 2,310.90
EBT
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 39.56% 40.91% 42.02% 39.05% 35.49% ‡‡‡ ‡‡‡ ‡‡‡
EBT Margin
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 1,392.80 1,557.30 1,690.40 1,657.30 1,760.10 ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡
Net Income
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 422.80 413.90 401.20 469.40 684.20
Depreciation
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 12.79 13.89 14.65 15.47 18.14 ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡
Revenue/Sh
‡‡‡‡ ‡‡‡ ‡‡‡‡ ‡‡‡‡ ‡‡‡‡ 3.86 4.32 4.69 4.60 4.90 ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡
Earnings/Sh
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 4.41 4.73 5.27 5.28 7.12
Cash Flow/Sh
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ (0.37) (0.35) (0.45) (0.53) (0.65) ‡‡‡ ‡‡‡ ‡‡‡
Capex/Sh
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 4.04 4.38 4.82 4.74 6.47
Free CF/Sh
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 8.56 9.69 10.55 11.46 10.41
Book Value/Sh
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 360.60 360.40 360.30 360.20 358.90 ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡
Shares
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 32.08 24.29 25.57 34.24 20.86 ‡‡‡‡ ‡‡‡‡
PE Ratio
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 9.68 7.55 8.20 10.18 5.65 ‡‡‡ ‡‡‡ ‡‡‡
PS Ratio
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 14.47 10.83 11.39 13.74 9.84 ‡‡‡ ‡‡‡ ‡‡‡
PB Ratio
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 9.58 7.39 8.06 10.77 6.23 ‡‡‡‡ ‡‡‡‡ ‡‡‡‡
EV/Sales
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 30.32 23.41 24.51 35.10 17.46
EV/FCF
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 1,589.70 1,706.20 1,897.70 1,900.90 2,556.70 ‡‡‡ ‡‡‡ ‡‡‡
Op' Cash Flow
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ (132.60) (126.30) (161.40) (191.80) (234.90) ‡‡‡‡‡
Capex
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 1,457.10 1,579.90 1,736.30 1,709.10 2,321.80
FCF
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 1,312.40 1,722.70 1,942.40 1,960.20 1,772.70
Working Cap'
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 806.40 808.40 817.30 4,966.80 4,556.10
Total Debt
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ (467.80) (836.80) (733.30) 3,255.80 3,378.80
Net Debt
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 3,085.20 3,493.20 3,801.00 4,128.00 3,735.10
Sh' Equity
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 14.77% 15.43% 16.15% 12.30% 10.75%
ROA
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 43.94% 47.83% 44.29% 18.69% 22.06%
ROIC
‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ ‡‡‡‡‡ 46.17% 47.35% 46.35% 41.80% 44.77%
ROE
predictions in italic, sparklines do not include predictions

Analyst Commentary (Summary)

Paychex (PAYX) stands as a resilient powerhouse in payroll and HCM services, delivering steady revenue growth from $2.95 billion in 2016 to $5.28 billion in 2024—a robust 8% CAGR—fueled by a sticky client base, efficient scaling (revenue per employee up 46%), and 70%+ gross margins that shield against economic storms like the pandemic and inflation. High ROE (42-47%), explosive net income growth (118%), and FCF per share surging 89% underscore its compounding machine status, mirroring peers like ADP while funding dividends and buybacks with fortress-like liquidity.

Yet, the stock trades 25-38% below recent highs, offering compelling value at 25x trailing PE and 5.8x forward EV/Sales, with analysts forecasting revenue to $7.28 billion and EPS to $6.20 by 2028—implying 10-15% annual returns if execution persists. Insider sells dominate but post-dip buys signal confidence, bolstered by strategic acquisitions and AI tailwinds, though rising debt and SMB macro risks temper the enthusiasm.

This setup evokes classic “accumulate on weakness” opportunities, with mean targets pointing to 28% upside and fair value potentially 20-40% higher—perfect for patient investors eyeing enduring quality amid uncertainty.

Paychex, Inc. (PAYX) Latest News

News by impact score

Fine-tune

18 Sep

3 , 9:15 AM
Paychex Q1 earnings preview highlights factors beyond headline estimates that may shape investor views on upcoming results and company performance. Earnings preview offers moderate insight into expected metrics without confirming actual results or strategic shifts.

17 Sep

3 , 10:18 AM
Intuit is pushing free QuickBooks versions to drive customer growth in small business accounting and payroll software. The move targets broader adoption and could intensify competition against providers like Paychex in overlapping services. Competitor free-product strategy adds pressure on Paychex customer acquisition in shared payroll and HR markets.

31 Aug

4 , 9:00 AM
Early results show Paychex AI reduces payroll errors and improves service efficiency at scale. Paychex AI cuts payroll errors and boosts efficiency in core payroll operations.

24 Aug

3 , 11:00 AM
Paychex expands award-winning lifestyle benefits to over 2 million employees on the Paycor platform. Benefit expansion to 2M+ users increases Paychex service reach and HR platform competitiveness.

3 Aug

3 , 9:30 AM
Paychex expands WISE platform to integrate workforce intelligence across multiple business tools. Platform expansion strengthens product capabilities in HR services without fundamentally shifting company trajectory.

24 Jul

3 , 11:30 AM
Paychex shares rose 14.4% since the prior earnings release on positive investor reaction to results and outlook. Post-earnings stock gains signal moderate positive effects on near-term sentiment and valuation.

17 Jul

3 , 11:57 AM
Intuit advances AI integration to transform its core offerings and business model, prompting investor questions on buying its stock amid evolving competitive dynamics in financial software and payroll services. Intuit AI push may shift competitive positioning versus Paychex in payroll and financial services.

1 Jul

4 , 11:58 AM
Paychex Inc. reported strong results, with its AI platform positioned to drive future growth. Strong results plus AI platform deployment signal major strategic growth driver likely to lift long-term performance and investor sentiment.

27 Jun

3 , 12:11 AM
Paychex reported Q4 FY26 revenue of $1.42 billion, up 6% YoY, with EPS at $1.08 beating estimates. Growth came from payroll services and HR solutions amid steady client retention. Management raised FY27 guidance on new business wins. Quarterly earnings update offers moderate insight into financial trends without signaling major strategic or market shifts.

25 Jun

3 Zacks, 6:42 AM
Paychex Q4 earnings call highlights AI initiatives with a steady fiscal 2027 outlook. AI push signals strategic innovation but steady 2027 guidance points to continuity rather than major trajectory shifts.

24 Jun

4 transcript GuruFocus.com, 5:00 PM
Paychex Inc reported strong Q4 2026 revenue growth alongside ongoing AI innovations. Strong revenue growth paired with AI initiatives signals major strategic progress likely to shift investor sentiment and company trajectory.

3 app.moby.co, 12:43 PM
Paychex reported Q4 2026 earnings results and outlook during its earnings call. Quarterly earnings updates affect near-term financial perceptions and stock movement.

3 www.proactiveinvestors.com, 11:27 AM
Paychex beat fourth-quarter earnings expectations but shares fell on weak 2027 outlook. Earnings beat offset by cautious long-term outlook triggered immediate share decline and signals moderate trajectory impact.

3 Zacks, 11:18 AM
Paychex Q4 earnings beat expectations driven by growth in management solutions from Paycor. Q4 earnings beat signals positive operational momentum but remains a routine quarterly update.

3 MT Newswires, 10:43 AM
Paychex projects slower profit and revenue growth for fiscal 2027, triggering an immediate drop in share price. Slower growth forecasts directly reduce expected earnings and pressure near-term valuation.

3 Zacks, 10:00 AM
Paychex (PAYX) reported Q4 earnings with analysis of key operating and financial metrics. Quarterly earnings and metric details can shift near-term investor sentiment and valuation but rarely alter long-term strategy.

3 , 8:30 AM
Paychex, Inc. reported its fourth quarter and full-year 2026 results. Quarterly earnings updates supply financial performance data that can moderately shift investor views and near-term stock movement.

22 Jun

3 StockStory, 11:00 PM
Paychex (PAYX) prepares to report Q2 earnings with focus on expected revenue, EPS, and forward guidance. Upcoming earnings release can moderately shift near-term investor views on PAYX financial trajectory.

15 Jun

3 , 2:20 PM
Citi upgraded Paychex to Buy citing rebounding growth and AI tailwinds. Citi Buy upgrade on growth rebound and AI tailwinds may moderately lift Paychex investor sentiment and stock trajectory.

5 Jun

4 Simply Wall St., 3:13 AM
Paychex shifts to broader HCM platform, reframing its growth and risk profile. Strategic shift to broader HCM platform significantly alters Paychex growth and risk profile.

3 Jun

3 , 2:39 PM
Paychex reported Q1 earnings, prompting evaluation of the stock as buy, sell or hold based on financial results and outlook. Q1 earnings may moderately influence PAYX stock trajectory and sentiment without fundamentally altering long-term position.

28 May

3 MT Newswires, 11:26 AM
RBC forecasts Paychex PEO revenue growth will reaccelerate in 2027. RBC's 2027 reacceleration forecast may lift investor sentiment on Paychex long-term growth without immediate fundamental change.

26 May

4 Simply Wall St., 4:11 PM
Paychex launches WISE platform centered on AI workflows, shifting investor focus to the company's valuation metrics and growth outlook. WISE AI launch represents major product innovation that can materially shift Paychex competitive position and investor sentiment.

19 May

4 Business Wire, 9:00 AM
Paychex launches WISE AI Platform for an agentic digital workforce. New WISE AI product launch targets core HR operations and could materially shift competitive positioning.

5 May

3 Business Wire, 8:30 AM
U.S. small business employment grew at a faster pace in April, according to Paychex data. Faster small business employment growth drives higher demand for Paychex's payroll and HR services.

4 May

4 Simply Wall St., 12:15 PM
Paychex (PAYX) raised its dividend and expanded human capital management (HCM) services with AI integration, prompting a valuation reassessment amid strong financials and growth potential. Dividend hike signals financial confidence while AI-focused HCM expansion drives competitive growth in a key sector.

1 May

3 Business Wire, 12:30 PM
Paychex, Inc. (PAYX) declares a 10% increase to its quarterly cash dividend. A 10% dividend increase signals financial strength and enhances shareholder value, moderately boosting market sentiment and stock performance.

2 Apr

3 Simply Wall St., 4:13 AM
Paychex partners with Tapcheck to integrate on-demand pay solution, enhancing its Professional Employer Organization (PEO) services. Partnership bolsters PEO competitiveness by adding modern on-demand pay feature for client appeal.

1 Apr

4 Business Wire, 9:30 AM
Tapcheck partners with Paychex to embed seamless on-demand pay solution, providing instant wage access for worksite employees. Partnership integrates innovative on-demand pay into Paychex's payroll platform, strengthening competitive positioning and client appeal.

27 Mar

4 Simply Wall St., 6:07 PM
Paychex announces a new $1 billion share buyback while evaluating gains from AI advancements and potential synergies with Paycor. $1B buyback signals financial strength and boosts investor confidence, while AI exploration and Paycor synergies indicate major strategic growth opportunities.

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