Fundamental analysis · SEC EDGAR · TTM through 28/02/2026

Fundamental analysis of Paychex Inc

PAYX · Nasdaq · Services-Engineering, Accounting, Research, Management

Fundamental quality

ATTRACTIVE

78

out of 100

Breakdown by area

I.GrowthEPS growth: 4.5% · Revenue growth: 8.8%
50
II.ProfitabilityNet margin: 25.8% · ROE: 40.8%
95
III.Financial healthNet debt/EBITDA: 1.17x · FCF: 33%
90

Source: SEC EDGAR · TTM through 28/02/2026

The score combines growth, profitability and financial strength. Here its profitability weighs in its favor, while its growth drags it down the most.

Strengths

  • High net margin (25.8%), a sign of a very profitable business.
  • Strong return on equity (ROE of 40.8%).
  • Growing revenue (8.8% annualized).
  • Strong free-cash-flow generation (FCF margin of 33%).

Risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

Historical evolution

YearRevenueNet incomeFree cash flowNet debt
2015$2,740M$675M-$170M
2022$4,612M$1,393M$1,456M$428M
2023$5,007M$1,557M$1,563M-$424M
2024$5,278M$1,690M$1,736M-$670M
2025$5,572M$1,657M$1,709M$3,320M

Between 2015 and 2025, revenue went from $2,740M to $5,572M (+103%) and net income went from $675M to $1,657M (+146%).

Annual figures in U.S. dollars per SEC filings. Net debt is total debt minus cash.

Frequently asked questions

Is Paychex Inc a profitable company?

Yes. Paychex Inc shows a net margin of 25.8% and an ROE of 40.8%, a sign of a profitable business.

Does Paychex Inc have a lot of debt?

Not particularly. Its net debt is 1.17 times its EBITDA, a low level.

Is Paychex Inc growing?

Its revenue has grown 8.8% annualized in recent years and its earnings per share 4.5%.

Does Paychex Inc generate cash?

Yes. It converts about 33% of its revenue into free cash flow.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

Is Paychex Inc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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