A Business at a Glance
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Unless we state otherwise or the context otherwise requires, the terms “Paychex,” “we,” “us,” “our” and the “Company” refer to Paychex, Inc., a Delaware corporation, and its consolidated subsidiaries. We are an industry-leading human capital management (“HCM”) company delivering a full suite of technology and advisory solutions in human resources (“HR”), employee benefit solutions, insurance, and payroll processing. As of May 31, 2025, we served approximately 800,000 clients and their employees across the U.S. and parts of Europe. Paychex was incorporated in Delaware in 1979, maintains a corporate headquarters in Rochester, New York, and has a fiscal year that ends on May 31st. For any organization, a key function is effective human capital management, which requires resources and expertise.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 6.0B | 5.6B | 5.3B | 5.0B | 4.6B | 4.1B |
| Net Income | 1.6B | 1.7B | 1.7B | 1.6B | 1.4B | 1.1B |
| EPS | $4.42 | $4.58 | $4.67 | $4.30 | $3.84 | $3.03 |
| Free Cash Flow | 2.0B | 1.7B | 1.7B | 1.6B | 1.4B | 1.1B |
| ROIC | 29.0% | 44.4% | 95.8% | 80.7% | 43.5% | 39.7% |
| Gross Margin | 73.4% | 72.4% | 72.0% | 71.0% | 70.6% | 68.7% |
| Debt/Equity | 1.28 | 1.22 | 0.23 | 0.25 | 0.29 | 0.30 |
| Dividends/Share | $4.23 | $4.02 | $3.65 | $3.26 | $2.77 | $2.52 |
| Operating Income | 2.2B | 2.2B | 2.2B | 2.0B | 1.8B | 1.5B |
| Operating Margin | 37.1% | 39.6% | 41.2% | 40.6% | 39.9% | 36.0% |
| ROE | 41.1% | 41.8% | 44.5% | 44.6% | 45.1% | 37.2% |
| Shares Outstanding | 359M | 362M | 362M | 362M | 363M | 362M |
PAYCHEX INC passes 8 of 9 quality checks, indicating strong fundamentals.
PAYCHEX INC trades at 20.2x trailing earnings, compared to its 15-year median P/E of 23.7x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 16.1x vs a median of 22.6x. The company's 5-year average ROIC is 60.8% with a gross margin of 70.9%. Total shareholder yield (dividends + buybacks) is 5.6%. At current prices, the estimated annualized return to fair value is +8.1%.
PAYCHEX INC (PAYX) has a current P/E ratio of 20.2, compared to its historical median P/E of 23.7. The stock is currently considered Fair based on its historical valuation range.
PAYCHEX INC (PAYX) has a 5-year average return on invested capital (ROIC) of 60.8%. This indicates strong capital allocation and a potential competitive advantage.
PAYCHEX INC (PAYX) has a market capitalization of $32.1B. It is classified as a large-cap stock.
Yes, PAYCHEX INC (PAYX) pays a dividend with a trailing twelve-month yield of 4.74%. The company also returns capital through share buybacks, with a buyback yield of 0.89%.
Based on historical P/E analysis, PAYCHEX INC (PAYX) appears fair. The current P/E of 20.2 is 15% below its historical median of 23.7. The estimated fair value CAGR (P/E method) is 9.3%.
PAYCHEX INC (PAYX) operates in the Services-Engineering, Accounting, Research, Management industry, within the Industrials sector.
PAYCHEX INC (PAYX) reported annual revenue of $5.6 billion in its most recent fiscal year, based on SEC EDGAR filings.
PAYCHEX INC (PAYX) has a net profit margin of 29.7%. This is a strong margin indicating high profitability.
PAYCHEX INC (PAYX) generated $1.7 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
PAYCHEX INC (PAYX) has a debt-to-equity ratio of 1.22. This indicates moderate leverage.
PAYCHEX INC (PAYX) reported earnings per share (EPS) of $4.58 in its most recent fiscal year.
PAYCHEX INC (PAYX) has a return on equity (ROE) of 41.8%. This indicates the company generates strong returns for shareholders.
PAYCHEX INC (PAYX) has a 5-year average gross margin of 70.9%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 18 years of financial data for PAYCHEX INC (PAYX), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
PAYCHEX INC (PAYX) has a book value per share of $11.41, based on its most recent annual SEC filing.