PAYCHEX INC (PAYX) Factsheet
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PAYCHEX INC (PAYX) Stock Analysis
Analysis from 10-Q filed 2026-09-24. Data as of Q3 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 22.3%. FCF margin 30.5%. D/E 1.2x. Source: 10-Q filed 2026-09-24.
| Metric | Value | Context |
|---|---|---|
| ROIC | 22.3% | Above industry average |
| FCF Margin | 30.5% | Strong cash generation |
| Debt/Equity | 1.2x | Moderate leverage |
ROIC 22.3% — Top 5% of sector peers. FCF margin 30.5% — Top 5%.
Explore PAYCHEX INC: Earnings History | Overview
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for PAYX: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_section, get_metric_history, compare_companies, screen_filing_signals.
Profitability: PAYCHEX INC earns 22.3% ROIC, Top 5% in Industrials
ROIC TTM 22.3%, sector median 7.2%, Top 5%. DuPont: NOPAT margin 29.8% × asset turnover 0.4x. Gross margin 74.4%. Operating margin 39.2%. Source: 10-Q filed 2026-09-24.
| Metric | PAYX | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 22.3% | Excellent | Above sector median of 7.2% |
| Return on Equity (ROE) | 46.7% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 74.4% | Excellent | Strong pricing power |
| Operating Margin | 39.2% | Excellent | Efficient operations |
Cash Flow: PAYCHEX INC generates $2.0B FCF at 30.5% margin, positive NaN/8 quarters
FCF TTM $2.0B. FCF margin 30.5%, Top 5%. OCF/Net income 1.2x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-09-24.
| Metric | PAYX | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 30.5% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $2.0B | Good | Positive cash generation |
| OCF/Net Income | 1.2x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: PAYCHEX INC at 1.2x leverage, 9.7x interest coverage
Debt/Equity 1.2x. Total debt $4.6B, cash & investments $934.2M. Interest coverage 9.7x. Source: 10-Q filed 2026-09-24.
| Metric | PAYX | Rating | Context |
|---|---|---|---|
| Debt to Equity | 1.2x | Adequate | Moderate leverage |
| Net Cash Position | $-3.6B | Warning | Net debt position |
| Interest Coverage | 9.7x | Good | Comfortable debt service |
Valuation: PAYCHEX INC trades at 22.7x earnings
P/E 22.7x. EV/Sales 6.8x. FCF yield 4.9%. Dividend yield 3.9%. Source: 10-Q filed 2026-09-24.
| Metric | PAYX | Rating | Context |
|---|---|---|---|
| P/E Ratio | 22.7x | Adequate | Premium valuation |
| EV/Sales | 6.8x | Adequate | Growth premium priced in |
| FCF Yield | 4.9% | Good | Lower cash yield |
| Dividend Yield | 3.9% | Adequate | Meaningful income |
Capital Allocation: PAYCHEX INC returns 5.1% shareholder yield, reducing shares 1.1% YoY
Total shareholder yield 5.1% (div 3.9% + buyback 1.1%). Share count -1.1% YoY. Capital returned $2.1B TTM. Source: 10-Q filed 2026-09-24.
| Metric | PAYX | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 5.1% | Good | Dividend + buyback yield combined |
| Buyback Yield | 1.1% | Adequate | Minimal buyback activity |
| Share Count Change (YoY) | -1.1% | Good | Net share reduction (accretive) |
| Total Capital Returned (TTM) | $2.1B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 22.3% | Top 5% | 3.1x above |
| Free Cash Flow Margin | 30.5% | Top 5% | 4.9x above |
| Gross Margin | 74.4% | Top 5% | 2.3x above |
| Operating Margin | 39.2% | Top 5% | 5.7x above |
| Return on Equity (ROE) | 46.7% | Top 5% | 4.7x above |
| P/E Ratio | 22.7x | N/A | - |
Financial Scorecard
| Metric | PAYX | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 22.3% | Excellent | Top 5% of sector (median: 7.2%) |
| Free Cash Flow Margin | 30.5% | Excellent | Top 5% of sector (median: 6.3%) |
| Gross Margin | 74.4% | Excellent | Top 5% of sector (median: 32.1%) |
| Debt to Equity Ratio | 123.0% | Adequate | Elevated but manageable |
| P/E Ratio (Price-to-Earnings) | 22.7x | Adequate | Fair value |
| Free Cash Flow Yield | 4.9% | Adequate | Moderate yield |
Frequently Asked Questions
Q: What is PAYCHEX INC's Return on Invested Capital (ROIC)?
PAYCHEX INC (PAYX) has a trailing twelve-month Return on Invested Capital (ROIC) of 22.3%. The 8-quarter median ROIC is 21.4% with a declining trend. Sector median 7.2%. Source: 10-Q filed 2026-09-24.
Q: What is PAYCHEX INC's Free Cash Flow Margin?
PAYCHEX INC (PAYX) has a free cash flow margin of 30.5%, generating $2.0 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-09-24.
Q: What is PAYCHEX INC's P/E ratio and how does it compare to peers?
PAYCHEX INC (PAYX) trades at a P/E ratio of 22.7x, which is above the sector median of N/A. EV/Sales 6.8x. FCF yield 4.9%. Source: 10-Q filed 2026-09-24.
Q: Does PAYCHEX INC pay a dividend?
PAYCHEX INC (PAYX) currently pays a dividend yield of 3.9%. Total shareholder yield (dividend + buybacks) 5.1%. Source: 10-Q filed 2026-09-24.
Q: How much debt does PAYCHEX INC have?
PAYCHEX INC (PAYX) has a debt-to-equity ratio of 1.2x with total debt of $4.6 billion. Interest coverage 9.7x. Net debt $3.6 billion. Source: 10-Q filed 2026-09-24.
Q: What is PAYCHEX INC's revenue and earnings growth?
PAYCHEX INC (PAYX) grew revenue by 14.0% year-over-year. EPS +12.9% YoY. Source: 10-Q filed 2026-09-24.
Q: Is PAYCHEX INC buying back stock?
PAYCHEX INC (PAYX) repurchased $450.9 million of stock over the trailing twelve months. This represents a buyback yield of 1.1%. Share count -1.1% YoY. Source: 10-Q filed 2026-09-24.
Q: How does PAYCHEX INC compare to competitors in Industrials?
Compared to other companies in Industrials, PAYCHEX INC (PAYX) shows: ROIC 22.3%, sector median 7.2% (Top 5%). FCF margin 30.5%, sector median 6.3% (Top 5%). Gross margin 74.4%, 42.3pp above sector median. These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.
Q: What warning signs should I watch for with PAYCHEX INC?
Quantitative warning flags for PAYCHEX INC (PAYX): 1) ROIC declining -14.8% over 8 quarters. Source: 10-Q filed 2026-09-24.
Data Source: Data sourced from 10-Q filed 2026-09-24. TTM metrics as of Q3 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.
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