PA
Paychex Inc
PAYX—
Paychex Inc AI Insights
Informational only. Not investment advice.Snapshot
- Tangible book value is -2.4B due to 4.5B goodwill (114% of equity) - acquisition-heavy model with impairment risk if growth slows.[Tangible Book Value]
- ROIC of 23.5% TTM vs industry median of -0.5% - exceptional capital efficiency funds 92% dividend payout without debt strain.[Return on Invested Capital]
- EPS declined 10.2% (1Y) despite stable revenue - margin compression or one-time items warrant investigation.[EPS Growth 1Y]
Watch Triggers
- EPS Growth 1Y: Negative for 2+ consecutive quarters — 92% payout ratio leaves no buffer - dividend cut risk if earnings deteriorate further
- Operating Margin TTM: Falls below 35% — Margin compression would signal pricing power erosion in competitive HR tech market
- Goodwill: Impairment charge announced — Would wipe equity and force dividend reassessment
Bull Case
Operating margin 38% TTM is 38x industry median (0%) - pricing power in sticky payroll/HR services creates durable moat.
Operating Margin TTMGross Margin TTM
FCF of 1.9B TTM with capex only 3.7% of revenue - asset-light model generates cash without reinvestment burden.
Free Cash Flow TTMCapital Expenditure TTM
Bear Case
EPS growth stalled (0.3% 3Y CAGR, -10% 1Y) while trading at 26x P/E - paying growth multiple for no growth.
EPS Growth 3YEPS Growth 1YP/E Ratio
Goodwill 4.5B is 114% of equity - any acquisition write-down would eliminate book value entirely.
GoodwillCommon Stockholders Equity
Bull vs Bear Balance
AI-generated sentiment analysis based on fundamental metrics and market conditions.
45%
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Forward Thesis
FCF generation will sustain dividend despite flat EPS growth, but multiple compression likely.
1-3ymed
- FCF margin 32% (1.9B TTM) covers 1.5B dividend
- EPS 3Y CAGR of 0.3% signals mature growth phase
- P/E of 26x vs median 30x offers modest cushion
FCF TTM 1.9B vs dividends 1.5BPayout ratio 92% (5Y avg 80%)Debt/equity 1.26x manageable
Valuation Context
Caveats
Public Strategies Rankings
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PAYX Fundamentals
Information → Software Publishers
| Metric | Value | YoY Growth | Industry Percentile |
|---|---|---|---|
$40.07B | — | ||
$43.62B | — | ||
25 | — | ||
$6.03B | +12.4% | — | |
$4.42 | -6.9% | — | |
37.1% | -4.2% | — | |
26.5% | -5.6% | — | |
$2.0B | +27.1% | — | |
0.41 | -5.3% | — | |
Beta 5Y (Monthly) | unknown | — |
PAYX Dividend History
104 dividends
2026
$1.080001/28/26$1.0800
2025
$4.220011/07/25$1.0800
07/21/25$1.0800
05/12/25$1.0800
02/07/25$0.9800
2024
$3.830011/07/24$0.9800
08/08/24$0.9800
05/09/24$0.9800
02/12/24$0.8900
2023
$3.460011/13/23$0.8900
08/09/23$0.8900
05/10/23$0.8900
02/08/23$0.7900
2022
$3.030011/08/22$0.7900
08/10/22$0.7900
05/11/22$0.7900
01/28/22$0.6600
2021
$2.600010/29/21$0.6600
07/30/21$0.6600
05/11/21$0.6600
01/29/21$0.6200
2020
$2.480010/30/20$0.6200
07/31/20$0.6200
05/14/20$0.6200
01/31/20$0.6200
2019
$2.420010/31/19$0.6200
07/31/19$0.6200
05/14/19$0.6200
01/31/19$0.5600
2018
$2.180010/31/18$0.5600
07/31/18$0.5600
05/08/18$0.5600
01/31/18$0.5000
2017
$1.920010/31/17$0.5000
07/28/17$0.5000
05/08/17$0.4600
01/30/17$0.4600
2016
$1.760010/28/16$0.4600
07/28/16$0.4600
05/05/16$0.4200
01/28/16$0.4200
2015
$1.600010/29/15$0.4200
07/30/15$0.4200
05/07/15$0.3800
01/29/15$0.3800
2014
$1.460010/30/14$0.3800
07/30/14$0.3800
05/08/14$0.3500
01/30/14$0.3500
2013
$0.700010/30/13$0.3500
07/30/13$0.3500
2012
$1.950012/18/12$0.6600
10/31/12$0.3300
07/30/12$0.3200
05/04/12$0.3200
01/30/12$0.3200
2011
$1.250010/28/11$0.3200
07/28/11$0.3100
04/28/11$0.3100
01/28/11$0.3100
2010
$1.240010/28/10$0.3100
07/29/10$0.3100
04/29/10$0.3100
01/28/10$0.3100
2009
$1.240010/29/09$0.3100
07/30/09$0.3100
04/29/09$0.3100
01/28/09$0.3100
2008
$1.220010/29/08$0.3100
07/30/08$0.3100
04/29/08$0.3000
01/30/08$0.3000
2007
$1.020010/30/07$0.3000
07/30/07$0.3000
04/27/07$0.2100
01/30/07$0.2100
2006
$0.690010/30/06$0.2100
07/28/06$0.1600
04/27/06$0.1600
01/30/06$0.1600
2005
$0.550010/28/05$0.1600
07/28/05$0.1300
04/28/05$0.1300
01/28/05$0.1300
2004
$0.490010/28/04$0.1300
07/29/04$0.1200
04/29/04$0.1200
01/29/04$0.1200
2003
$0.450010/30/03$0.1200
07/30/03$0.1100
04/29/03$0.1100
01/30/03$0.1100
2002
$0.440010/30/02$0.1100
07/30/02$0.1100
04/29/02$0.1100
01/30/02$0.1100
2001
$0.380010/30/01$0.1100
07/30/01$0.0900
04/27/01$0.0900
01/30/01$0.0900
2000
$0.270010/30/00$0.0900
07/28/00$0.0600
04/27/00$0.0600
01/28/00$0.0600
PAYX Stock Splits
1 stock split
05/23/000.666667:1 split
PAYX SEC Filings
| Filing Date | Report Date | Report Type | Filing Link |
|---|---|---|---|
12/22/25 | 11/30/25 | 10-Q | |
09/30/25 | 08/31/25 | 10-Q | |
08/31/25 | 08/31/25 | 10-Q | |
07/11/25 | 05/31/25 | Unknown | |
03/26/25 | 02/28/25 | 10-Q | |
12/19/24 | 11/30/24 | 10-Q | |
10/01/24 | 08/31/24 | 10-Q | |
07/11/24 | 05/31/24 | 10-K | |
04/02/24 | 02/29/24 | 10-Q | |
12/21/23 | 11/30/23 | 10-Q | |
09/28/23 | 08/31/23 | 10-Q | |
07/14/23 | 05/31/23 | 10-K | |
03/30/23 | 02/28/23 | 10-Q | |
12/22/22 | 11/30/22 | 10-Q | |
09/29/22 | 08/31/22 | 10-Q | |
07/15/22 | 05/31/22 | 10-K | |
03/31/22 | 02/28/22 | 10-Q | |
12/22/21 | 11/30/21 | 10-Q | |
10/01/21 | 08/31/21 | 10-Q | |
07/16/21 | 05/31/21 | 10-K | |
04/07/21 | 02/28/21 | 10-Q | |
12/23/20 | 11/30/20 | 10-Q | |
10/09/20 | 08/31/20 | 10-Q | |
07/17/20 | 05/31/20 | 10-K | |
03/27/20 | 02/29/20 | 10-Q | |
12/20/19 | 11/30/19 | 10-Q | |
10/04/19 | 08/31/19 | 10-Q | |
07/24/19 | 05/31/19 | 10-K | |
03/29/19 | 02/28/19 | 10-Q | |
12/21/18 | 11/30/18 | 10-Q | |
10/05/18 | 08/31/18 | 10-Q | |
07/20/18 | 05/31/18 | 10-K | |
03/28/18 | 02/28/18 | 10-Q | |
12/21/17 | 11/30/17 | 10-Q | |
10/06/17 | 08/31/17 | 10-Q | |
07/21/17 | 05/31/17 | 10-K | |
03/31/17 | 02/28/17 | 10-Q | |
12/23/16 | 11/30/16 | 10-Q | |
09/30/16 | 08/31/16 | 10-Q | |
07/22/16 | 05/31/16 | 10-K | |
03/30/16 | 02/29/16 | 10-Q | |
12/23/15 | 11/30/15 | 10-Q | |
09/30/15 | 08/31/15 | 10-Q | |
07/21/15 | 05/31/15 | 10-K | |
03/25/15 | 02/28/15 | 10-Q | |
12/19/14 | 11/30/14 | 10-Q | |
09/24/14 | 08/31/14 | 10-Q | |
07/22/14 | 05/31/14 | 10-K | |
03/26/14 | 02/28/14 | 10-Q | |
12/20/13 | 11/30/13 | 10-Q | |
09/30/13 | 08/31/13 | 10-Q | |
07/22/13 | 05/31/13 | 10-K | |
03/27/13 | 02/28/13 | 10-Q | |
12/20/12 | 11/30/12 | 10-Q | |
09/24/12 | 08/31/12 | 10-Q | |
07/20/12 | 05/31/12 | 10-K | |
03/28/12 | 02/29/12 | 10-Q | |
12/20/11 | 11/30/11 | 10-Q | |
09/27/11 | 08/31/11 | 10-Q | |
07/15/11 | 05/31/11 | 10-K | |
03/23/11 | 02/28/11 | 10-Q | |
12/20/10 | 11/30/10 | 10-Q | |
09/27/10 | 08/31/10 | 10-Q | |
07/16/10 | 05/31/10 | 10-K | |
03/24/10 | 02/28/10 | 10-Q | |
12/16/09 | 11/30/09 | 10-Q | |
09/23/09 | 08/31/09 | 10-Q | |
07/20/09 | 05/31/09 | 10-K | |
03/25/09 | 02/28/09 | 10-Q | |
12/17/08 | 11/30/08 | 10-Q | |
09/24/08 | 08/30/08 | Unknown | -- |
07/18/08 | 05/30/08 | Unknown | -- |
03/26/08 | 02/29/08 | 10-Q | |
12/19/07 | 11/30/07 | 8-K | |
09/26/07 | 08/30/07 | Unknown | -- |
07/20/07 | 05/30/07 | Unknown | -- |
03/28/07 | 02/28/07 | 10-Q | |
12/20/06 | 11/30/06 | 10-Q | |
09/26/06 | 08/30/06 | Unknown | -- |
07/21/06 | 05/30/06 | Unknown | -- |
03/28/06 | 02/28/06 | 10-Q | |
12/21/05 | 11/30/05 | 10-Q | |
09/27/05 | 08/30/05 | Unknown | -- |
07/22/05 | 05/30/05 | Unknown | -- |
03/22/05 | 02/28/05 | 8-K | |
12/22/04 | 11/30/04 | 10-Q | |
09/22/04 | 08/30/04 | Unknown | -- |
07/20/04 | 05/30/04 | Unknown | -- |
03/18/04 | 02/29/04 | 10-Q | |
12/19/03 | 11/30/03 | 10-Q | |
09/24/03 | 08/30/03 | Unknown | -- |
08/01/03 | 05/30/03 | Unknown | -- |
03/21/03 | 02/28/03 | 10-Q | |
12/19/02 | 11/30/02 | 10-Q | |
09/19/02 | 08/30/02 | Unknown | -- |
07/22/02 | 05/30/02 | Unknown | -- |
03/19/02 | 02/28/02 | 10-Q | |
12/19/01 | 11/30/01 | 10-Q | |
09/20/01 | 08/30/01 | Unknown | -- |
08/24/01 | 05/30/01 | Unknown | -- |
03/19/01 | 02/28/01 | 10-Q | |
12/20/00 | 11/30/00 | 10-Q | |
09/20/00 | 08/30/00 | Unknown | -- |
08/28/00 | 05/30/00 | Unknown | -- |
03/16/00 | 02/29/00 | 10-Q |