Is PAYX a good stock to buy right now?

Based on our 6-factor quantitative model, PAYCHEX INC (PAYX) receives a "Reduce" rating with a composite score of 38.3/100. It is ranked #3,188 out of 4,446 stocks. Key factor scores: Quality 50/100, Value 48/100, Momentum 22/100. The timing signal is "Neutral". This is quantitative analysis only — not investment advice.

What is the stock rating for PAYX?

PAYCHEX INC (PAYX) has a "Reduce" rating and 2-star score. The composite score of 38.3 ranks it #3,188 among 4,446 U.S. stocks. Ratings are updated weekly using academically-proven factor models.

What sector is PAYX in?

PAYCHEX INC operates in the Industrials sector (Business Services industry) with a market cap of $32.57 billion. It is classified as a large-cap stock.

Does PAYX pay a dividend?

Yes, PAYX pays a dividend with a current yield of 3.78%. For every $1,000 invested, you would receive approximately $37.80 in annual dividend income.

What is PAYX's P/E ratio?

PAYX has a trailing P/E ratio of 17.66x. The Industrials sector average is 28.3x. This P/E is in a moderate range relative to the broader market.

How profitable is PAYX?

PAYX's quality factor score is 50/100. Gross margin: 74.3%. ROE: 46.3% vs sector average 8.9%. High margins suggest pricing power and competitive moats.

How is PAYX valued compared to peers?

PAYX's value factor score is 48/100 (higher = cheaper). Key multiples: P/E 17.7x, EV/EBITDA 14.5x. Valuation is roughly in line with peers.

What is PAYX's debt level?

PAYX's debt-to-equity ratio is 123%. Sector average: 70%. Moderate leverage is normal for established companies.

PAYX has a beta of 0.55, meaning it is less volatile than the market. Stability score: 74/100.

Does PAYX have high short interest?

PAYX's short interest factor score is 9/100 (higher = less short selling). Elevated short interest may indicate bearish sentiment or short squeeze potential.

PAYX Stock Analysis: Reduce (Score 38.3/100) | Blank Capital Research

Data Series	1D	5D	1M	YTD	1Y	3Y	5Y	10Y
PAYX	-2.61%	-6.68%

Metric	PAYX	Benchmark
P/E Ratio	17.7x	-38%
EV/EBITDA	14.5x	+155%
Price / Book	8.2x

Stock Entity	Score▼	Quality	Value	Momentum	P/E Ratio	ROE	Gross Margin	Net Margin	Rev Growth	D/E Ratio	Market Cap	Compare
STNG Scorpio Tankers Inc.	64	43	96	73	-	93.3%	63.1%	53.8%	-	30.0x	$3.8B	VS
TNK TEEKAY TANKERS LTD.	62	50	97	71	6.4x	91.9%	67.0%	32.8%	-	0.0x	$2.5B	VS
TEN TSAKOS ENERGY NAVIGATION LTD	61	50	86	75	7.6x	42.1%	97.8%	22.6%	-	103.0x	$1.2B	VS
HAFN Hafnia Ltd	60	42	79	77	-	439.1%	48.5%	27.0%	-	0.0x	$3.8B	VS
TPH Tri Pointe Homes, Inc.	57	50	67	66	13.6x	8.8%	47.5%	7.9%	-26.0%	50.0x	$4.0B	VS
GLDD Great Lakes Dredge & Dock CORP	57	50	69	70	16.3x	13.5%	22.2%	8.1%	14.8%	73.0x	$1.1B	VS
SOBO South Bow Corp	57	39	79	66	22.0x	48.4%	82.3%	14.9%	-	219.0x	$6.8B	VS
IMPP Imperial Petroleum Inc./Marshall Islands	54	44	98	58	2.8x	47.7%	100.0%	34.0%	-19.7%	0.0x	$156M	VS
CCO Clear Channel Outdoor Holdings, Inc.	52	48	58	69	59.3x	-	53.4%	-0.3%	7.7%	-	$1.2B	VS
IMXI International Money Express, Inc.	52	50	73	52	11.6x	25.5%	0.0%	6.4%	-9.7%	221.0x	$476M	VS
PAYX PAYCHEX INC	38	50	48	22	17.7x	46.3%	74.3%	28.9%	37.4%	123.0x	$32.6B

Key Ratio	TTM	2026	2025	2024	2023	2022	2021	2020	2019	2018	2017
Gross Margin %	0.7%	0.8%	0.7%	0.7%	0.7%	0.7%	0.7%	0.7%	0.7%	0.7%	1.0%
Operating Margin %	0.4%	0.4%	0.4%	0.4%	0.4%	0.4%	0.4%	0.4%	0.4%	0.4%	0.4%
EBITDA Margin %	0.4%	0.4%	0.4%	0.4%	0.4%	0.4%	0.5%	0.5%	0.5%	0.5%	0.5%
Net Margin %	0.3%	0.3%	0.3%	0.3%	0.3%	0.3%	0.3%	0.3%	0.3%	0.3%	0.3%
FCF Margin %	-	-	-	-	-	-	27.9%	32.3%	30.3%	32.1%	27.2%
ROE %	0.5%	0.1%	0.4%	0.4%	0.4%	0.5%	0.4%	0.4%	0.4%	0.4%	0.4%
ROA %	0.1%	0.0%	0.1%	0.2%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%	0.1%
ROIC %	0.2%	7.0%	19.2%	37.3%	37.4%	37.4%	41.8%	43.1%	39.5%	51.0%	55.3%

Key Ratio

TTM

2026

2025

2024

2023

2022

2021

2020

2019

2018

2017

Gross Margin %

0.7%

0.8%

0.7%

1.0%

Operating Margin %

0.4%

EBITDA Margin %

0.4%

0.5%

Net Margin %

0.3%

FCF Margin %

27.9%

32.3%

30.3%

32.1%

27.2%

ROE %

0.5%

0.1%

0.4%

0.5%

0.4%

ROA %

0.1%

0.0%

0.1%

0.2%

0.1%

ROIC %

0.2%

7.0%

19.2%

37.3%

37.4%

41.8%

43.1%

39.5%

51.0%

55.3%

Line Item	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
	$6.4B	$5.6B	$5.3B	$5.0B	$4.6B	$4.1B	$4.0B	$3.8B	$3.4B	$3.2B	$3.0B	$2.7B
	—	$1.5B	$1.5B	$1.5B	$1.4B	—	—	—	—	—	—	—
	$4.8B	$4.0B	$3.8B	$3.6B	$3.3B	$2.8B	$2.8B	$2.6B	$2.4B	$3.2B	$3.0B	$2.7B
Gross Margin	74.3%	72.4%	72.0%	71.0%	70.6%	68.7%	68.3%	68.8%	69.9%	100.0%	100.0%	100.0%
	—	$1.8B	$1.6B	$1.5B	$1.4B	—	—	—	—	—	—	—
Depreciation	—	—	—	—	—	$419M	$437M	$411M	$203M	$369M	$191M	$183M
Total Operating Expenses	—	$1.8B	$1.6B	$1.5B	$1.4B	—	—	—	—	—	—	—
	$2.6B	$2.2B	$2.2B	$2.0B	$1.8B	$1.5B	$1.5B	$1.4B	$1.3B	$1.2B	$1.1B	$1.1B
EBIT	$2.6B	$2.2B	$2.2B	$2.0B	$1.8B	$1.5B	$1.5B	$1.4B	$1.3B	$1.2B	$1.1B	$1.1B
EBITDA	$2.6B	$2.2B	$2.2B	$2.0B	$1.8B	$1.9B	$1.9B	$1.8B	$1.7B	$1.6B	$1.3B	$1.2B
Operating Margin	40.4%	39.6%	41.2%	40.6%	39.9%	36.0%	36.1%	36.4%	38.2%	39.8%	38.8%	38.5%
EBITDA Margin	40.5%	39.6%	41.2%	40.6%	39.9%	46.3%	47.0%	47.2%	49.4%	51.5%	45.3%	45.1%
	—	—	$37M	$37M	$37M	—	—	—	—	—	—	—
	—	$2.2B	$2.2B	$2.0B	$1.8B	—	—	—	—	—	—	—
Income Tax Expense	—	$519M	$528M	$491M	$432M	$337M	$339M	$334M	$306M	$428M	$394M	$385M
	$1.9B	$1.7B	$1.7B	$1.6B	$1.4B	$1.1B	$1.1B	$1.0B	$994M	$817M	$757M	$675M
Net Margin	28.9%	29.7%	32.0%	31.1%	30.2%	27.1%	27.2%	27.4%	29.4%	26.2%	25.6%	24.6%
	$1.56	$4.60	$4.69	$4.32	$3.86	$3.05	$3.06	$2.88	$2.77	$2.27	$2.10	$1.86
Diluted EPS	$1.56	$4.58	$4.67	$4.30	$3.84	$3.05	$3.06	$2.88	$2.77	$2.27	$2.10	$1.86
Weighted Avg Basic	—	360M	360M	360M	361M	—	—	—	—	—	—	—
Weighted Avg Diluted	—	362M	362M	362M	363M	—	—	—	—	—	—	—

Line Item

TTM

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

$6.4B

$5.6B

$5.3B

$5.0B

$4.6B

$4.1B

$4.0B

$3.8B

$3.4B

$3.2B

$3.0B

$2.7B

—

$1.5B

$1.4B

—

$4.8B

$4.0B

$3.8B

$3.6B

$3.3B

$2.8B

$2.6B

$2.4B

$3.2B

$3.0B

$2.7B

Gross Margin

74.3%

72.4%

72.0%

71.0%

70.6%

68.7%

68.3%

68.8%

69.9%

100.0%

—

$1.8B

$1.6B

$1.5B

$1.4B

—

Depreciation

—

$419M

$437M

$411M

$203M

$369M

$191M

$183M

Total Operating Expenses

—

$1.8B

$1.6B

$1.5B

$1.4B

—

$2.6B

$2.2B

$2.0B

$1.8B

$1.5B

$1.4B

$1.3B

$1.2B

$1.1B

EBIT

$2.6B

$2.2B

$2.0B

$1.8B

$1.5B

$1.4B

$1.3B

$1.2B

$1.1B

EBITDA

$2.6B

$2.2B

$2.0B

$1.8B

$1.9B

$1.8B

$1.7B

$1.6B

$1.3B

$1.2B

Operating Margin

40.4%

39.6%

41.2%

40.6%

39.9%

36.0%

36.1%

36.4%

38.2%

39.8%

38.8%

38.5%

EBITDA Margin

40.5%

39.6%

41.2%

40.6%

39.9%

46.3%

47.0%

47.2%

49.4%

51.5%

45.3%

45.1%

—

$37M

—

$2.2B

$2.0B

$1.8B

—

Income Tax Expense

—

$519M

$528M

$491M

$432M

$337M

$339M

$334M

$306M

$428M

$394M

$385M

$1.9B

$1.7B

$1.6B

$1.4B

$1.1B

$1.0B

$994M

$817M

$757M

$675M

Net Margin

28.9%

29.7%

32.0%

31.1%

30.2%

27.1%

27.2%

27.4%

29.4%

26.2%

25.6%

24.6%

$1.56

$4.60

$4.69

$4.32

$3.86

$3.05

$3.06

$2.88

$2.77

$2.27

$2.10

$1.86

Diluted EPS

$1.56

$4.58

$4.67

$4.30

$3.84

$3.05

$3.06

$2.88

$2.77

$2.27

$2.10

$1.86

Weighted Avg Basic

—

360M

361M

—

Weighted Avg Diluted

—

362M

363M

—

PAYCHEX INC (PAYX) Stock Analysis — April 2026 Rating, Price, and Forecast

Last updated: April 2026

Company Overview — What Does PAYCHEX INC Do?

Paychex, Inc. provides integrated human capital management solutions for human resources (HR), payroll, benefits, and insurance services for small to medium-sized businesses in the United States and Europe. The company offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services, such as new-hire reporting and garnishment processing. It also provides HR solutions, including payroll, employer compliance, HR and employee benefits administration, risk management outsourcing, and the on-site availability of a professionally trained HR representative; and retirement services administration, including plan implementation, ongoing compliance with government regulations, employee and employer reporting, participant and employer online access, electronic funds transfer, and other administrative services. In addition, the company offers cloud-based HR administration software products for employee benefits management and administration, time and attendance, digital communication solutions, recruiting, and onboarding solutions; plan administration outsourcing and state unemployment insurance services; various business services to small to medium-sized businesses comprising payroll funding and outsourcing services, which include payroll processing, invoicing, and tax preparation; and payment processing services, financial fitness programs, and a small-business loan resource center. Further, it provides 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. The company markets and sells its services primarily through its direct sales force. Paychex, Inc. was founded in 1971 and is headquartered in Rochester, New York. PAYCHEX INC (PAYX) is classified as a large-cap stock in the Industrials sector, specifically within the Business Services industry. The company is led by CEO John B. Gibson and employs approximately 16,000 people, headquartered in ROCHESTER, New York. With a market capitalization of $32.6B, PAYX is one of the prominent companies in the Industrials sector.

PAYCHEX INC (PAYX) Stock Rating — Reduce (April 2026)

As of April 2026, PAYCHEX INC receives a Reduce rating with a composite score of 38.3/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.PAYX ranks #3,188 out of 4,446 stocks in our coverage universe. Within the Industrials sector, PAYCHEX INC ranks #539 of 752 stocks, placing it in the lower half of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

PAYX Stock Price and 52-Week Range

PAYCHEX INC (PAYX) currently trades at $85.63. The stock lost $2.23 (2.5%) in the most recent trading session. The 52-week high for PAYX is $161.24, which means the stock is currently trading -46.9% from its annual peak. The 52-week low is $86.89, putting the stock -1.5% above its annual trough. Recent trading volume was 1.5M shares, reflecting moderate market activity.

Is PAYX Overvalued or Undervalued? — Valuation Analysis

PAYCHEX INC (PAYX) carries a value factor score of 48/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 17.66x, compared to the Industrials sector average of 28.33x — a discount of 38%. The price-to-book ratio stands at 8.18x, versus the sector average of 2.23x. The price-to-sales ratio is 5.12x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, PAYX trades at 14.54x EV/EBITDA, versus 5.70x for the sector.

Overall, PAYX's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.

PAYCHEX INC Profitability — ROE, Margins, and Quality Score

PAYCHEX INC (PAYX) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 46.3%, compared to the Industrials sector average of 8.9%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 10.6% versus the sector average of 3.3%.

On a margin basis, PAYCHEX INC reports gross margins of 74.3%, compared to 35.8% for the sector. The operating margin is 40.4% (sector: 6.2%). Net profit margin stands at 28.9%, versus 3.9% for the average Industrials stock. Revenue growth is running at 37.4% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.

PAYX Debt, Balance Sheet, and Financial Health

PAYCHEX INC has a debt-to-equity ratio of 123.0%, compared to the Industrials sector average of 70.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.26x, suggesting adequate working capital coverage. Total debt on the balance sheet is $4.95B.

PAYX has a beta of 0.55, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for PAYCHEX INC is 74/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.

PAYCHEX INC Revenue and Earnings History — Quarterly Trend

In TTM 2026, PAYCHEX INC reported revenue of $6.42B and earnings per share (EPS) of $1.56. Net income for the quarter was $1.86B. Gross margin was 74.3%. Operating income came in at $2.60B.

In Q3 2026, PAYCHEX INC reported revenue of $1.81B and earnings per share (EPS) of $1.56. Net income for the quarter was $560M. Gross margin was 76.2%. Revenue grew 19.9% year-over-year compared to Q3 2025. Operating income came in at $792M.

In Q2 2026, PAYCHEX INC reported revenue of $1.56B and earnings per share (EPS) of $1.10. Net income for the quarter was $395M. Gross margin was 73.5%. Revenue grew 18.3% year-over-year compared to Q2 2025. Operating income came in at $572M.

In Q1 2026, PAYCHEX INC reported revenue of $1.54B and earnings per share (EPS) of $1.07. Net income for the quarter was $384M. Gross margin was 73.1%. Revenue grew 16.8% year-over-year compared to Q1 2025. Operating income came in at $542M.

Over the past 8 quarters, PAYCHEX INC has demonstrated a growth trajectory, with revenue expanding from $1.32B to $6.42B. Investors analyzing PAYX stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

PAYX Dividend Yield and Income Analysis

PAYCHEX INC (PAYX) currently pays a dividend yield of 3.8%. At this yield, a $10,000 investment in PAYX stock would generate approximately $$378.00 in annual dividend income. With a net margin of 28.9%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.

PAYX Momentum and Technical Analysis Profile

PAYCHEX INC (PAYX) has a momentum factor score of 22/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 23/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 9/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.

PAYX vs Competitors — Industrials Sector Ranking and Peer Comparison

Within the Industrials sector, PAYCHEX INC (PAYX) ranks #539 out of 752 stocks based on the Blank Capital composite score. This places PAYX in the lower half of all Industrials stocks in our coverage universe. Key competitors and sector peers include South Bow Corp (SOBO) with a score of 56.5/100, TSAKOS ENERGY NAVIGATION LTD (TEN) with a score of 61.4/100, Great Lakes Dredge & Dock CORP (GLDD) with a score of 56.7/100, Tri Pointe Homes, Inc. (TPH) with a score of 57.3/100, and Clear Channel Outdoor Holdings, Inc. (CCO) with a score of 52.2/100.

Comparing PAYX against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full PAYX vs S&P 500 (SPY) comparison to assess how PAYCHEX INC stacks up against the broader market across all factor dimensions.

PAYX Next Earnings Date

No upcoming earnings date has been announced for PAYCHEX INC (PAYX) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy PAYX? — Investment Thesis Summary

The quantitative profile for PAYCHEX INC suggests caution. Momentum is weak at 22/100, a headwind for near-term performance. Low volatility (stability score 74/100) reduces downside risk.

In summary, PAYCHEX INC (PAYX) earns a Reduce rating with a composite score of 38.3/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on PAYX stock.

Related Resources for PAYX Investors

Explore more research and tools: PAYX vs S&P 500 comparison, top Industrials stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare PAYX head-to-head with peers: PAYX vs SOBO, PAYX vs TEN, PAYX vs GLDD.

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PAYCHEX INC (PAYX) Stock Analysis — April 2026 Rating, Price, and Forecast

Company Overview — What Does PAYCHEX INC Do?

PAYCHEX INC (PAYX) Stock Rating — Reduce (April 2026)

PAYX Stock Price and 52-Week Range

Is PAYX Overvalued or Undervalued? — Valuation Analysis

PAYCHEX INC Profitability — ROE, Margins, and Quality Score

PAYX Debt, Balance Sheet, and Financial Health

PAYCHEX INC Revenue and Earnings History — Quarterly Trend

PAYX Dividend Yield and Income Analysis

PAYX Momentum and Technical Analysis Profile

PAYX vs Competitors — Industrials Sector Ranking and Peer Comparison

PAYX Next Earnings Date

Should You Buy PAYX? — Investment Thesis Summary

Related Resources for PAYX Investors

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