Fundamental analysis · SEC EDGAR · TTM through 31/08/2026
PAYX · Nasdaq · Industrial
Fundamental quality
81
out of 100
Paychex Inc fits the profile of a quality compounder: it pairs high return on capital (ROE 48.7%) with wide margins (net margin 27.4%) and a business that keeps growing (9.7% a year). On fundamental quality it scores 81 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +9.7%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.
Paychex runs payroll and human resources for hundreds of thousands of small American businesses: it pays employees, withholds taxes and administers benefits and insurance. A sticky business par excellence: switching payroll providers is a pain nobody wants.
EPS growth: 10.2% · Revenue growth: 9.7%
Net margin: 27.4% · ROE: 48.7% · ROIC: 25.6%
Net debt/EBITDA: 1.31x · FCF: 30.5%
Source: SEC EDGAR · TTM through 31/08/2026
The score combines growth, profitability and financial strength. Here its profitability weighs in its favor, while its growth drags it down the most.
Percentile against the other 69 Industrial companies in our coverage: how far it beats them on each metric (100 = best in sector).
Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.
Key concepts
What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow
| Year | Revenue | Net income | Free cash flow | Net debt |
|---|---|---|---|---|
| 2015 | 2,740 | 675 | — | -170 |
| 2022 | 4,612 | 1,393 | 1,456 | 436 |
| 2023 | 5,007 | 1,557 | 1,563 | -414 |
| 2024 | 5,278 | 1,690 | 1,736 | -670 |
| 2025 | 5,572 | 1,657 | 1,709 | 3,320 |
| 2026 | 6,512 | 1,760 | 2,322 | 3,468 |
Between 2015 and 2026, revenue went from $2,740M to $6,512M (+138%) and net income went from $675M to $1,760M (+161%).
Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.
Latest results
Figures for the quarter ended August 31, 2026, versus the quarter ended August 31, 2025 (SEC filings):
Compared with the previous close (May 31, 2026), this is what moved in its accounts:
Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.
$4.43
per share, yearly
90.3% of earnings
Payout
15 straight years raising it
Growth
The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →
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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).
Compute the valuation →Is Paychex Inc a good company to invest in?
In terms of business quality, Paychex Inc scores 81 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.
Is Paychex Inc a profitable company?
Very. Paychex Inc shows a net margin of 27.4% and an ROE of 48.7%, typical of a highly profitable business.
Does Paychex Inc have a lot of debt?
Not particularly. Its net debt is 1.31 times its EBITDA, a low level.
Is Paychex Inc growing?
Its revenue has grown 9.7% annualized in recent years and its earnings per share 10.2%, and without interruption since 2015.
Does Paychex Inc generate cash?
Yes. It converts about 30.5% of its revenue into free cash flow, and has done so positively year after year.
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.
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Who's behind the methodology and model · how the score is computed
Data: see Paychex Inc's filings on EDGAR
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