Obermatt

Paychex

NSQ:PAYX · US7043261079
Professional ServicesX-Large

360

76
EV / EBIT39
Price / Owner Earnings40
Owner Earnings Yield49
Dividend Yield96
Price/Sales17
EV / Gross Profit26
Price/Book11
Return on Capital93
Cash Return on Capital89
Return on Equity86
EBIT Margin99
Gross Profitability49
Cash Conversion44
Accruals3
Owner Earnings Margin99
Sales growth92
Profit Growth92
Long-Term EPS Growth18
Owner Earnings Growth57
Reinvestment48
Price momentum37
Debt load42
Refinancing48
Debt Payback69
Liquidity67
Analyst ratings1
Opinion Changes54
Price Target Upside8
Market mood54
Value Creation18/20strong value creator
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Paychex generates returns well above its cost of capital, the foundation of durable shareholder value.

Profile

CountryUSA
IndustryProfessional Services
SizeX-Large
TypePublic Company
ExchangeNASDAQGS
Founded1979
Employees13,642
ISINUS7043261079
Last UpdateApr 2, 2026
Themes
Process AutomationCorporate Wellness ProgramsEmployee BenefitsHRTechSoftware DevelopmentInsurtechEmployee Assistance Program (EAP)AccountingHuman ResourcesSoftware

Description

Paychex, Inc. (Paychex) operates as a human capital management (HCM) company. The company delivers a full suite of technology and advisory services in human resources (HR), employee benefit solutions, insurance, and payroll processing. As of May 31,…

Analysis

Middle-of-the-road

Paychex, Inc. sits in the middle of our grid: average quality, average price, no obvious signal in either direction. Worth noting: the cash the business generates has lagged behind what the income statement shows.

On valuation, the picture is fair. The owner-earnings multiple stands at 19.3×; owner earnings: the cash an owner could take out each year.

Growth is moderate; the safety picture is sturdy. The company scores 18/20 on our value-creation score: strong value creator.

Flags to be aware of: The financial cushion is thinner than comfortable. Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
45
2023202420252026

All-time high

83

Nov 2023

All-time low

16

Jul 2024

Average rank

51

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
17
11
5
13
Price/Earnings
38
38
20
23
Price/Book
11
14
12
14
Dividend Yield
96
100
98
98
Value (overall)
39
33
29
33

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →