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PAYX · NasdaqGS

Paychex, Inc.

Software - Application · United States

USD 99.70-0.1% daily changeQuote 2026-10-06 · USD
Market cap (USD)
US$35.49B
Trailing P/E
19.78x
Forward P/E
15.61x
Quarterly revenue growth
5.9%
Trailing net margin
27.4%
Indicated dividend yield
4.8%

Snapshot 2026-10-06 · Latest financial period 2026-08-31 · Yahoo Finance. Quotes may be delayed; reporting periods can differ.

Next earnings: 2026-12-18 (provider estimate, not issuer-confirmed).

Company background

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.

Company website

Q1 FY2027

Go beyond the headline.

PAYX Stock: The Dividend Outran Cash — What Recovers Next? Q1 FY2027

Published 2026-09-23

Q1 FY2027 REPORT HIGHLIGHTS

What’s changed for PAYX

Paychex expanded margins and raised its PEO outlook, but quarterly free cash flow fell below dividends; our $114 base value weighs timing recovery against debt and acquisition adjustments.

  1. The cash shortfall is real but seasonal evidence is incomplete.

    Quarterly operating cash fell to $413.5 million; after $56.1 million of capex, dividends exceeded free cash flow by $66.7 million. Trailing coverage remains positive.

  2. Most of the cash decline sits in three identifiable lines.

    Payables and other liabilities, receivables, and deferred taxes contributed $292.7 million of the $304.9 million operating-cash decline. These are timing and tax effects to monitor, not proof of a permanent loss.

  3. Margin improvement contains two different stories.

    GAAP operating profit increased $77.3 million, while adjusted profit increased $58.0 million; the $19.3 million difference reflects lower acquisition adjustments.

  4. PEO momentum improved without a company-wide EPS raise.

    PEO and Insurance Solutions guidance moved to 7%–8% growth and client-interest guidance rose $5 million, while overall revenue, margin and adjusted EPS guidance stayed unchanged.

  5. Client funds are not an equity-value cash windfall.

    Corporate cash and investments total $934.2 million excluding restricted cash, against $4,558.0 million of borrowings. Our $114 base value uses that corporate balance sheet.

Comparable businesses

PAYX peer comparison

Same business group first, then company size. Preferred market cap: 0.5–2x; extended range: one-third–3x. Outside that range, industry benchmarks are labeled separately and excluded from peer medians.

Comparison stocks

No suitable peers with fresh, comparable size data are available. We have not substituted unrelated companies.

Market metrics · missing or inapplicable values shown as —
MetricPAYXPaychex, Inc.Snapshot 2026-10-06Financial period: 2026-08-31
Market capMarket value, converted to USDUS$35.49B
Forward P/EProvider forward earnings estimate15.61x
EV / EBITDAEnterprise value / trailing EBITDA12.74x
Revenue growthLatest quarter vs prior-year quarter5.9%
Operating marginLatest reported quarter38.5%
Free cash flow yieldTrailing cash flow / market cap5.3%
Net debt / EBITDANet debt / trailing EBITDA1.20x
Debt / equityTotal debt / positive book equity1.25x
Trailing P/ETrailing twelve-month earnings19.78x
Price / bookPrice / positive book equity per share9.49x
EV / salesEnterprise value / trailing revenue5.94x
Earnings growthLatest quarter vs prior-year quarter13.9%
Gross marginTrailing twelve months74.4%
Net marginTrailing twelve months27.4%
Return on equityProvider trailing return; positive equity only47.1%
Free cash flow marginTrailing free cash flow / revenue28.6%
Dividend yieldIndicated annual dividend / price4.8%
Earnings payoutProvider trailing dividend payout90.1%
Current ratioCurrent assets / current liabilities1.28x
BetaProvider historical market sensitivity0.85

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Comparison methodology & limitations

Reviewed operating groups override broad sector classifications. Other companies are matched only within a sufficiently specific provider industry. Business mix, geography and accounting standards can still differ. Market caps are converted to USD using exchange rates captured during the snapshot refresh. Financial ratios that would mix currencies are omitted. Snapshots must be at most 14 days old and no more than seven days apart for automatic selection.

Peer medians require at least two valid similar-size peers for each metric. Negative earnings, nonpositive equity, missing data and irrelevant bank ratios are not presented as attractive valuations. A higher or lower number is not automatically a better investment. Financial statement periods are not calendar-aligned across companies.

Reported performance

Financial trends

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Market context

Valuation & price history

Adjusted closing price

Price history

Price history loads separately.

Earnings-multiple scenario

Illustrative price = your earnings-per-share assumption × your P/E assumption. This is not a price target or a complete valuation model.

Starting assumptions, when available, use provider forward estimates as of 2026-10-06. Negative earnings require a different valuation method. This calculation omits balance-sheet, dilution and execution risks.

THE RESEARCH RECORD

Research history for PAYX

All available reporting periods
Q1 FY20272026-09-23
Q4 FY20262026-06-24

Reported figures

Verify material figures against company filings. Market data and AI-assisted analysis may contain errors.