Is Paychex (PAYX) overvalued or fairly valued?

MarketChacha shows Paychex's valuation in context — a trailing P/E of about 21.5, a forward P/E of about 17.3, a price-to-book of about 10.6 — alongside its revenue and profit growth and whether reported profit converts into operating cash, so you can judge value for yourself. MarketChacha does not issue ratings, price targets, or buy/sell advice.

Does Paychex's reported profit turn into cash?

Over 4 years, operating cash flow fully covered reported profit — earnings are backed by real cash. MarketChacha computes this cash-conversion check (1.21×) from reported figures — education, not a rating.

What is Paychex's revenue?

Paychex reported revenue of $6.3B for FY2026, with net profit of $1.8B, per official filings.

What is the share price of Paychex (PAYX)?

Paychex last traded at $110.75 (-0.8% on the day), as of 10/19/2026 — a delayed quote shown for education, not investment advice.

Paychex

PAYX · NASDAQ · Industrials · United States

Snapshot

TickerPAYX

ExchangeNASDAQ

SectorIndustrials

IndustrySoftware - Application

CountryUnited States

Employees17,600

HeadquartersRochester, United States

Websitewww.paychex.com

Filings tracked12

About Paychex

Paychex, Inc., together with its subsidiaries, provides human capital management solutions (HCM) for human resources, payroll processing, employee benefits, and insurance services for small to medium-sized businesses in the United States, Europe, Canada, India, and Israel. It offers technology and advisory solutions; and payroll tax administration services. The company also provides retirement solutions, such as plan implementation, ongoing compliance with government regulations, employee and employer reporting, participant and employer online access, electronic funds transfer, and other administrative services; HCM solutions from recruiting and hiring to retirement; and talent management and talent acquisition services. In addition, it offers payroll solutions, including calculation, preparation, and delivery of employee payroll checks; production of internal accounting records and management reports; preparation of federal, state, and local payroll tax returns; and collection and remittance of clients' payroll obligations. Further, the company provides workforce management solutions; benefits administration solutions; digital marketplace for earned wages, financial wellness solutions, and voluntary lifestyle benefits; administrative services organization HR outsourcing solutions; solutions to payroll and non-payroll customers; retirement and funding solutions; and insurance services for property and casualty coverage, such as workers' compensation, business-owner policies, cyber security protection, and commercial auto, as well as health and benefits coverage, including health, dental, vision, and life. Additionally, it offers payroll, HR, employee benefits administration, retirement, insurance, risk management outsourcing, and access to professionally trained HR representatives, virtually and on-site. It markets and sells its solutions primarily through its direct sales force. Paychex, Inc. was founded in 1971 and is headquartered in Rochester, New York.

Who owns it

Insiders10.2%
Institutions85.9%
Public & other3.9%

2,002 institutional holders

Ownership breakdown from public market data.

Top holders

Capital International Investors8.10%
Blackrock Inc.7.80%
Vanguard Capital Management LLC5.91%
Vanguard Portfolio Management LLC4.29%
State Street Corporation4.05%
Invesco Ltd.3.66%
Charles Schwab Investment Management, Inc.2.92%
Geode Capital Management, LLC2.88%

Largest institutional holders — last updated 6/30/2026.

Forensic scorecard

Margin has compressed by about 3.8 points over the period — profitability is trending down.

Cash conversion1.21×

Over 4 years, operating cash flow fully covered reported profit — earnings are backed by real cash.

Net margin trend31.7% → 27.9%

Margin has compressed by about 3.8 points over the period — profitability is trending down.

Return on equity47.1%

Latest ROE of 47.1% — capital is generating a healthy return.

Growth qualityrev 9% · PAT 4%

Profit growth is broadly tracking revenue growth — the earnings trend looks operational rather than one-off.

Computed by MarketChacha from reported figures (SEC XBRL). Education, not a rating or recommendation.

What's expected next

Next quarter

Rev $1.9B · EPS 1.87

Est. earnings growth +9.4%

Next fiscal year

Rev $7.2B · EPS 6.39

Est. earnings growth +7.2%

Analyst consensus estimates — not the company's own guidance.

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Financials at a glance

Source: SEC XBRL

Annual

Quarterly · last 8

Revenue (FY2026)

$6.3B

Net margin

27.9%

ROE

47.1%

Revenue CAGR (3y)

+8.7%

Profit CAGR (3y)

+4.2%

EPS (FY2026)

4.89

Net profit (FY2026)

$1.8B

Ask MarketChacha about PAYX

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Financials

Yearly

Period	Revenue	Net profit	EPS	Net margin	ROE
FY2026	$6.3B	$1.8B	4.89	27.9%	47.1%
FY2025	$5.4B	$1.7B	4.58	30.6%	40.1%
FY2024	$5.1B	$1.7B	4.67	32.9%	44.5%
FY2023	$4.9B	$1.6B	4.30	31.7%	44.6%

Quarterly

Period	Revenue	Net profit	EPS	Net margin
2026Q1	$1.8B	$560.3M	1.56	32.0%
2025Q4	$1.5B	$395.4M	1.10	26.3%
2025Q3	$1.5B	$383.8M	1.06	25.7%
2025Q1	$1.5B	$519.3M	1.43	35.4%
2024Q4	$1.3B	$413.4M	1.14	32.3%
2024Q3	$1.3B	$427.4M	1.18	33.4%
2024Q1	$1.4B	—	1.38	—
2023Q4	$1.2B	—	1.08	—
2023Q3	$1.3B	$419.2M	1.16	33.4%
2023Q1	$1.3B	—	1.29	—

Figures as reported, in reporting currency. Source: SEC XBRL.

Filings & announcements

2026

8-K — Executive/director change, Exhibits
SEC7/21/2026material
10-K filing
SEC7/17/2026
8-K — Results of operations, Exhibits
SEC6/24/2026material
10-Q filing
SEC3/26/2026
8-K — Results of operations, Exhibits
SEC3/25/2026material
8-K — Material agreement, Termination of agreement, Material financial obligation
SEC1/26/2026material
8-K — Executive/director change, Other events, Exhibits
SEC1/20/2026material

2025

10-Q filing
SEC12/22/2025
8-K — Results of operations, Exhibits
SEC12/19/2025material
8-K — Shareholder vote results
SEC10/14/2025material
8-K — Results of operations, Exhibits
SEC9/30/2025material
10-Q filing
SEC9/30/2025

In the news

Education and discussion only — not investment advice. Financials from official filings (SEC/BSE) and reported company statements; market figures (delayed market data) are delayed and shown for reference only. Verify with the linked sources before acting.