Paychex Inc.

Paychex Inc.

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Market Cap$34.75B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Paychex Inc.Paychex Inc.21.34.57%41%5.81.3

Earnings Call Q3 2026

March 25, 2026 - AI Summary

Strong Revenue and Profit Growth: Paychex, Inc. reported a 20% year-over-year increase in total revenue, reaching $1.8 billion. Adjusted operating income grew by 22%, demonstrating robust operational execution. Management Solutions revenue specifically rose 23% to $1.4 billion, attributed to product penetration and price realization, while the PEO and Insurance Solutions revenue increased by 9%.
Solid Free Cash Flow Generation: Paychex's free cash flow saw a 27% increase year-over-year, highlighting the financial strength of the company. This positions Paychex well for capital returns to shareholders.
PEO Business Performance: The PEO business showed strong growth with a 9% revenue increase, driven by robust demand and record retention rates. The successful January enrollment for their at-risk 40 MPP medical plan and the embedding of AI-driven benefits intelligence contributed positively to performance.

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$105.00

Target Price by Analysts

6.7% upsidePaychex Target Price DetailsTarget Price
$151.93

Current Fair Value

54.3% upside

Undervalued by 54.3% based on the discounted cash flow analysis.

Share Statistics

Market cap$34.75 Billion
Enterprise Value$38.08 Billion
Dividend Yield$4.43 (4.57%)
Earnings per Share$4.6
Beta0.82
Outstanding Shares359,400,000

Return

Return on Equity40.78%ROE
Return on Assets9.35%
Return on Invested Capital21.60%

Valuation & Multiples

P/E Ratio21.3P/E Ratio
PEG269.73PEG
Price to Sales5.79Price to Sales
Price to Book Ratio8.95Price to Book Ratio
Enterprise Value to Revenue6.01
Enterprise Value to EBIT18.3
Enterprise Value to Net Income23
Total Debt to Enterprise0.13
Debt to Equity1.28Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
March 25, 2026
EPS Estimate
$1.67
Average shareholder expectation
Revenue Estimate
$1.78 B
Average shareholder expectation

Next Earnings Call

Expected Date
June 24, 2026
EPS Estimate
$1.32
Average shareholder expectation
Revenue Estimate
$1.60 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.8824 35.80%
Total Calls1,671,780 6.49%
Total Puts1,475,100 57.37%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %79.68% 0.12%
Total Invested$26.41B 18.02%
Investors Holding1,534 105.00%

ESG Score

No data

About Paychex Inc.

14,300 employees
CEO: Martin Mucci

Paychex, Inc. is a leading provider of integrated human capital management solutions for human resources, payroll, benefits, and insurance services. By combining its innovative software-as-a-service technology and mobility platform with ...

Relevant Senate Committees

Joint Committee on Taxation

This committee provides the official revenue estimates and technical analysis for all tax legislation. Its work directly influences the development and passage of tax laws, which are paramount to Paychex's payroll and benefits services and its clients' financial planning.

Finance

This powerful committee controls taxation, trade, and entitlement spending. Changes to federal tax policy (corporate income, payroll taxes) directly impact Paychex's payroll services and their clients' financial burdens. Entitlement spending decisions (e.g., Medicare) affect the benefits landscape Paychex helps administer.

Health, Education, Labor, and Pensions

This committee directly regulates labor laws (minimum wage, overtime, worker classification), pension plans (ERISA), and healthcare benefits (ACA, other health regulations). These areas are fundamental to Paychex's payroll, HR, and benefits administration services.

Small Business and Entrepreneurship

Paychex primarily serves small and medium-sized businesses (SMBs). This committee's oversight of the SBA and policies affecting capital flow, growth, and R&D for SMBs directly impacts Paychex's addressable market and client success.