Paychex, Inc.
Paychex, Inc., together with its subsidiaries, provides human capital management solutions (HCM) for payroll, employee benefits, human resources (HR), and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll t…
What to know about PAYX
Paychex, Inc. is a large Technology company with a mixed financial profile. It scores well on cash flow and profitability, but sentiment is worth keeping an eye on.
Should you consider PAYX?
Based on 31 financial metrics and sector comparison. Not financial advice.
-
Paychex, Inc. is a large-cap Technology company with a mixed overall financial profile — it is in the lower half of its Technology peers (46 of 82).
-
Profit margins are a clear strength, though the balance sheet warrants a closer look — make sure the debt levels are manageable.
-
Valuation is in the middle of the pack — neither obviously cheap nor stretched.
-
The company is growing at a reasonable pace — not the fastest, but consistently moving in the right direction.
-
This stock pays no dividend — your return depends entirely on the share price rising over time.
-
Volatility is close to the S&P 500 average — typical market swings, nothing unusual.
-
Analyst sentiment is cautious and short interest is relatively elevated — meaning some professional investors are actively betting the price will fall. Worth understanding why.
-
This is a mixed picture — real strengths in some areas, but areas that need watching too. Do your homework on the sector before deciding.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how PAYX compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 21.69 | Above avg |
| Forward P/E | 16.65 | Above avg |
| PEG Ratio | 1.74 | Average |
| Price to Sales | 8.87 | Below avg |
| Price to Book | 8.77 | Below avg |
| EV/EBITDA | 24.36 | Below avg |
| Earnings Yield | 4.61% | Above avg |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 67.20% | Top 25% |
| Operating Margin | 44.38% | Top 25% |
| Net Profit Margin | 26.63% | Top 25% |
| Return on Equity | — | N/A |
| Return on Invested Capital | — | N/A |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 19.90% | Top 25% |
| Revenue Growth (3Y CAGR) | 6.51% | Above avg |
| EPS Growth (YoY) | 9.10% | Average |
| Free Cash Flow Growth | -1.57% | Average |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 1.15 | Average |
| Debt to Equity | 1.25 | Average |
| Interest Coverage | 21.64 | Top 25% |
| Altman Z-Score | 2.82 | Average |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | — | N/A |
| Payout Ratio | — | N/A |
| Dividend Growth (5Y) | -2.68% | Top 25% |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 5.94% | Above avg |
| OCF to Sales | 36.62% | Top 25% |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | — | N/A |
| Volatility (30-Day) | 31.60% | Average |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 6.25% | Below avg |
| Avg. Analyst Rating | 3.17 | Below avg |
| Target Upside % | 7.32% | Average |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 35.2B | Average |
How does PAYX compare to…?
Pick another stock and see them side by side in seconds.
You might also look at
Companies in a similar position to PAYX — based on their financial profile.