Paychex, Inc. (PAYX) Financial Ratios
30 years of historical data (1996–2025) · Industrials · Staffing & Employment Services
EV/EBITDA
↑
14.98
↓-29% vs avg
5yr avg: 20.97
30Y Low10.3·High44.3
P/FCF
↑
18.65
↓-36% vs avg
5yr avg: 29.34
30Y Low15.8·High70.4
P/B Ratio
↑
8.01
↓-37% vs avg
5yr avg: 12.63
30Y Low6.8·High23.3
ROE
↑
41.8%
-5% vs avg
5yr avg: 44.0%
30Y Low27%·High47%
Debt/EBITDA
↑
2.08
↑+172% vs avg
5yr avg: 0.76
30Y Low0.4·High2.1
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
PAYX Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Paychex, Inc. trades at 20.0x earnings, 34% below its 5-year average of 30.0x, sitting at the 7th percentile of its historical range. Compared to the Industrials sector median P/E of 25.9x, the stock trades at a discount of 23%. On a free-cash-flow basis, the stock trades at 18.6x P/FCF, 36% below the 5-year average of 29.3x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $32.8B | $57.2B | $43.5B | $38.0B | $45.0B | $36.6B | $26.1B | $31.0B | $23.7B | $21.5B | $19.7B |
| Enterprise Value | $36.2B | $60.6B | $42.9B | $37.7B | $45.5B | $36.5B | $26.1B | $31.2B | $23.3B | $21.3B | $19.5B |
| P/E Ratio → | 19.95 | 34.48 | 25.73 | 24.40 | 32.25 | 33.38 | 23.78 | 30.00 | 25.42 | 26.32 | 25.94 |
| P/S Ratio | 5.89 | 10.26 | 8.24 | 7.59 | 9.75 | 9.03 | 6.46 | 8.23 | 7.01 | 6.82 | 6.66 |
| P/B Ratio | 8.01 | 13.85 | 11.45 | 10.88 | 14.57 | 12.42 | 9.38 | 11.85 | 11.71 | 10.98 | 10.28 |
| P/FCF | 18.65 | 32.49 | 25.06 | 24.43 | 32.75 | 31.97 | 19.86 | 26.63 | 21.12 | 24.80 | 21.35 |
| P/OCF | 16.81 | 29.30 | 22.93 | 22.37 | 29.87 | 29.06 | 18.11 | 24.07 | 18.57 | 22.36 | 19.30 |
P/E links to full P/E history page with 30-year chart
PAYX EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Paychex, Inc.'s enterprise value stands at 15.0x EBITDA, 29% below its 5-year average of 21.0x. The Industrials sector median is 13.7x, placing the stock at a 9% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 10.87 | 8.13 | 7.52 | 9.86 | 9.00 | 6.46 | 8.26 | 6.91 | 6.76 | 6.61 |
| EV / EBITDA | 14.98 | 25.05 | 18.25 | 17.04 | 22.38 | 22.10 | 15.62 | 20.08 | 16.38 | 15.58 | 15.47 |
| EV / EBIT | 16.40 | 26.55 | 19.03 | 18.52 | 24.71 | 25.00 | 17.86 | 22.65 | 18.08 | 16.88 | 16.94 |
| EV / FCF | — | 34.42 | 24.71 | 24.20 | 33.12 | 31.88 | 19.85 | 26.74 | 20.80 | 24.58 | 21.21 |
PAYX Profitability
Margins and return-on-capital ratios measuring operating efficiency
Paychex, Inc. earns an operating margin of 39.6%, significantly above the Industrials sector average of 4.7%. Return on equity of 41.8% is exceptionally high — well above the sector median of 8.2%. ROIC of 30.9% represents excellent returns on invested capital versus a sector median of 6.4%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 72.4% | 72.4% | 72.0% | 71.0% | 70.6% | 68.7% | 68.3% | 68.8% | 69.9% | 70.8% | 71.0% |
| Operating Margin | 39.6% | 39.6% | 41.2% | 40.6% | 39.9% | 36.0% | 36.1% | 36.3% | 38.1% | 39.3% | 38.8% |
| Net Profit Margin | 29.7% | 29.7% | 32.0% | 31.1% | 30.2% | 27.1% | 27.2% | 27.4% | 27.6% | 25.9% | 25.6% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 41.8% | 41.8% | 46.3% | 47.3% | 46.2% | 38.3% | 40.7% | 44.5% | 46.9% | 42.3% | 40.9% |
| ROA | 12.3% | 12.3% | 16.2% | 15.4% | 14.8% | 12.3% | 12.7% | 12.8% | 13.1% | 12.3% | 11.7% |
| ROIC | 30.9% | 30.9% | 51.5% | 45.3% | 42.8% | 39.0% | 39.6% | 46.5% | 56.2% | 52.4% | 50.6% |
| ROCE | 30.1% | 30.1% | 44.3% | 44.6% | 42.5% | 34.7% | 36.7% | 45.7% | 60.2% | 59.3% | 57.6% |
PAYX Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Paychex, Inc. carries a Debt/EBITDA ratio of 2.1x, which is manageable (33% below the sector average of 3.1x). Net debt stands at $3.4B ($5.0B total debt minus $1.6B cash). Interest coverage of 20.9x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.22 | 1.22 | 0.23 | 0.25 | 0.29 | 0.30 | 0.32 | 0.31 | — | — | — |
| Debt / EBITDA | 2.08 | 2.08 | 0.37 | 0.39 | 0.43 | 0.54 | 0.54 | 0.52 | — | — | — |
| Net Debt / Equity | — | 0.82 | -0.16 | -0.10 | 0.17 | -0.03 | -0.00 | 0.05 | -0.18 | -0.09 | -0.07 |
| Net Debt / EBITDA | 1.40 | 1.40 | -0.26 | -0.16 | 0.25 | -0.06 | -0.00 | 0.09 | -0.25 | -0.14 | -0.10 |
| Debt / FCF | — | 1.93 | -0.35 | -0.23 | 0.37 | -0.09 | -0.00 | 0.12 | -0.32 | -0.21 | -0.14 |
| Interest Coverage | 20.95 | 20.95 | 58.29 | 55.40 | 50.27 | 40.80 | 37.64 | 77.91 | 330.13 | 495.84 | 1042.36 |
PAYX Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.28x means Paychex, Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.28 | 1.28 | 1.37 | 1.30 | 1.25 | 1.25 | 1.23 | 1.17 | 1.09 | 1.12 | 1.11 |
| Quick Ratio | 1.28 | 1.28 | 1.37 | 1.30 | 1.25 | 1.25 | 1.23 | 1.17 | 1.09 | 1.12 | 1.11 |
| Cash Ratio | 0.24 | 0.24 | 0.28 | 0.27 | 0.23 | 0.21 | 0.21 | 0.15 | 0.08 | 0.07 | 0.08 |
| Asset Turnover | — | 0.34 | 0.51 | 0.47 | 0.48 | 0.44 | 0.47 | 0.43 | 0.45 | 0.46 | 0.46 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 129.38 | 112.39 | 103.97 | 104.33 | 94.79 | 71.39 | 82.65 | 56.64 | 62.94 | 54.99 |
PAYX Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Paychex, Inc. returns 4.7% to shareholders annually — split between a 4.4% dividend yield and 0.3% buyback yield. The payout ratio of 87.4% is elevated — while still covered by earnings, there is limited headroom for dividend increases. The earnings yield of 5.0% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 4.4% | 2.5% | 3.0% | 3.1% | 2.2% | 2.5% | 3.4% | 2.7% | 3.1% | 3.1% | 3.1% |
| Payout Ratio | 87.4% | 87.4% | 77.8% | 75.5% | 71.8% | 82.8% | 81.0% | 79.9% | 79.2% | 81.0% | 80.1% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.0% | 2.9% | 3.9% | 4.1% | 3.1% | 3.0% | 4.2% | 3.3% | 3.9% | 3.8% | 3.9% |
| FCF Yield | 5.4% | 3.1% | 4.0% | 4.1% | 3.1% | 3.1% | 5.0% | 3.8% | 4.7% | 4.0% | 4.7% |
| Buyback Yield | 0.3% | 0.2% | 0.4% | 0.0% | 0.3% | 0.4% | 0.7% | 0.2% | 0.6% | 0.8% | 0.5% |
| Total Shareholder Yield | 4.7% | 2.7% | 3.4% | 3.1% | 2.5% | 2.9% | 4.1% | 2.8% | 3.7% | 3.9% | 3.6% |
| Shares Outstanding | — | $362M | $362M | $362M | $363M | $362M | $361M | $362M | $362M | $363M | $363M |
Peer Comparison
Compare PAYX with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 PAYXYou | $33B | 20.0 | 15.0 | 18.6 | 72.4% | 39.6% | 41.8% | 30.9% | 2.1 |
 ADP | $83B | 20.8 | 15.1 | 17.5 | 50.8% | 26.3% | 76.0% | 47.1% | 1.5 |
 PCTY | $6B | 25.5 | 13.2 | 16.1 | 68.8% | 19.1% | 20.0% | 26.2% | 0.5 |
 PAYC | $7B | 14.2 | 8.6 | 20.7 | 82.2% | 33.7% | 34.9% | 40.6% | 0.1 |
 TNET | $2B | 12.9 | 2.5 | 6.2 | 17.4% | 5.3% | 252.0% | — | 2.8 |
 NSP | $1B | -159.7 | 25.4 | — | 13.2% | -0.1% | -9.8% | — | 12.4 |
 HCKT | $257M | 21.7 | 10.0 | 7.9 | 38.3% | 8.7% | 14.1% | 16.4% | 2.5 |
 TASK | $368M | 6.1 | 4.7 | 5.0 | 184.9% | -16.6% | 18.6% | 16.3% | 3.1 |
 ALIT | $491M | -0.2 | 5.0 | 2.0 | 20.7% | 1.5% | -115.6% | 0.6% | 4.5 |
 INTU | $108B | 28.4 | 19.6 | 17.8 | 80.8% | 26.1% | 20.3% | 16.5% | 1.2 |
 WEX | $5B | 17.0 | 8.9 | 15.9 | 54.9% | 25.4% | 22.3% | 9.6% | 4.8 |
| Industrials Median | — | 25.9 | 13.7 | 21.0 | 33.0% | 4.7% | 8.2% | 6.4% | 3.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Includes 30+ ratios · 30 years · Updated daily
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Start ComparisonPAYX — Frequently Asked Questions
Quick answers to the most common questions about buying PAYX stock.
What is Paychex, Inc.'s P/E ratio?
Paychex, Inc.'s current P/E ratio is 20.0x. The historical average is 34.3x. This places it at the 7th percentile of its historical range.
What is Paychex, Inc.'s EV/EBITDA?
Paychex, Inc.'s current EV/EBITDA is 15.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 21.7x.
What is Paychex, Inc.'s ROE?
Paychex, Inc.'s return on equity (ROE) is 41.8%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 37.2%.
Is PAYX stock overvalued?
Based on historical data, Paychex, Inc. is trading at a P/E of 20.0x. This is at the 7th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Paychex, Inc.'s dividend yield?
Paychex, Inc.'s current dividend yield is 4.38% with a payout ratio of 87.4%.
What are Paychex, Inc.'s profit margins?
Paychex, Inc. has 72.4% gross margin and 39.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Paychex, Inc. have?
Paychex, Inc.'s Debt/EBITDA ratio is 2.1x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.