Paychex, Inc. PAYX
Technology · Software - Application · United States · S&P 500
Based on the available data, Paychex, Inc. gets an algorithmic score of 64/100. It trades at 99.31 $, with a sideways/transition technical trend (RSI 20.5) and 29.6% annual volatility.
Updated: 2026-09-30
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Strengths
- High ROE (47.1%): generates strong profit on equity.
- High net margin (27.4%): pricing power / competitive advantage.
- Attractive free-cash-flow yield (6.6%).
- Low beta (0.20): defensive profile.
- Meaningful dividend (4.79%).
Weaknesses
- —
Fundamentals
| P/E | 19.70 |
| Forward P/E | 15.54 |
| PEG | 1.85 |
| P/B | 9.45 |
| EV/EBITDA | 12.68 |
| P/S | 5.35 |
| ROE % | 47.05 |
| ROA % | 10.19 |
| Gross margin % | 74.39 |
| Operating margin % | 38.50 |
| Net margin % | 27.35 |
| Revenue growth % (y/y) | 5.90 |
| Earnings growth % (y/y) | 13.90 |
| Revenue CAGR % | 9.15 |
| Earnings CAGR % | 4.16 |
| Debt/Equity % | 124.70 |
| Current ratio | 1.28 |
| FCF yield % | 6.57 |
| Dividend yield % | 4.79 |
| Payout % | 90.08 |
Returns
| 1 month | -21.8 % |
| 3 months | +2.0 % |
| 6 months | +9.1 % |
| YTD | -5.4 % |
| 1 year | -19.1 % |
| 3 years | -2.6 % |
| 5 years | +6.9 % |
Risk
| 1-year volatility | 29.6 % |
| Beta | 0.20 |
| 5-year max drawdown | -45.0 % |
| Sharpe 1A | -0.70 |
Macroeconomic context
Highly sensitive to interest rates (valued on future cash flows): rate cuts and falling bond yields help it. It depends on the corporate investment cycle (AI/cloud capex), the semiconductor supply chain (Taiwan/China) and the dollar (foreign revenue). As a US company, its valuation depends on the Fed, 10-year Treasury yields and the US earnings cycle.
How the score is calculated
The score combines profitability (ROE, ROA, net margin), growth (revenue and earnings), valuation (P/E, EV/EBITDA, free cash flow), financial strength (debt and liquidity; not applied to banks and insurers) and momentum (6 and 12-month returns and trend). It is an educational quantitative filter, not a buy or sell recommendation.