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Paychex, Inc.

PAYX

Technology · Staffing & Employment Services · NASDAQ

$121.30

P/E 23.4×

CEO

John Gibson Jr.

Sector

Technology

Industry

Staffing & Employment Services

Founded in 1971 and headquartered in Rochester, New York, Paychex, Inc. delivers comprehensive human capital management (HCM) solutions. The company primarily serves small to medium-sized enterprises (SMEs) across the United States, Europe, and India, addressing their needs in human resources, payroll administration, employee benefits, and insurance. Its diverse service portfolio includes: Payroll Management: Encompassing core payroll processing, payroll tax administration, employee payment facilitation, and ensuring compliance with regulations like new-hire reporting and garnishment processing. Human Resources Solutions: Providing support for employer compliance, HR and employee benefits administration, risk management outsourcing, and even the availability of professionally trained on-site HR representatives. Retirement Services: Offering full administration for retirement plans, which covers implementation, ongoing adherence to government regulations, reporting for both participants and employers, online access capabilities, electronic funds transfers, and other administrative tasks. Cloud-based HR Software: A suite of software products designed for efficient HR administration, including tools for benefits management, time and attendance tracking, digital communication, recruitment, and onboarding processes. Additional Business Services: This category features plan administration outsourcing, state unemployment insurance services, and various support functions for SMBs such as payroll funding and outsourcing (including payroll processing, invoicing, and tax preparation), payment processing solutions, financial wellness programs, and a resource center for small business loans. Insurance Offerings: Providing both property and casualty coverage, which includes workers' compensation, business-owner policies, cybersecurity protection, and commercial auto insurance, alongside health and benefits coverage like medical, dental, vision, and life insurance. Paychex primarily distributes its services through its dedicated direct sales team.

Investor model analysis

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At $121.30, 2 of 4 frameworks say Avoid

Business Quality61/100

Intrinsic Value (DCF)

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Scenario analysis

Bear, base & bull

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Key strengths

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Return on Equity

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Company financials

5-Year Financials

Income statement highlights — annual, USD

Metric20262025202420232022
Revenue$6.5B
$5.6B
$5.3B
$5.0B
$4.6B
Rev. Growth+16.9%+5.6%+5.4%+8.6%
Net Income$1.8B$1.7B$1.7B$1.6B$1.4B
Net Margin27.0%29.7%32.0%31.1%30.2%
EPS (Diluted)$4.90$4.60$4.69$4.32$3.86
Free Cash FlowLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to viewLocked — upgrade to view

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Analysis, scores, valuations, and buy zones are derived from publicly documented investor frameworks (Buffett, Lynch, Benjamin Graham, Phil Town) for learning purposes only. They are not recommendations from licensed financial advisors. Past performance does not guarantee future results. Prices may be delayed up to 15 minutes. Always conduct your own research before making any investment decisions.