Paychex Inc (PAYX) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Paychex Inc stock (PAYX) is currently trading at $93.36. Paychex Inc PE ratio is 20.50. Paychex Inc PS ratio (Price-to-Sales) is 5.39. Analyst consensus price target for PAYX is $110.93. WallStSmart rates PAYX as Hold.
- PAYX PE ratio analysis and historical PE chart
- PAYX PS ratio (Price-to-Sales) history and trend
- PAYX intrinsic value — DCF, Graham Number, EPV models
- PAYX stock price prediction 2025 2026 2027 2028 2029 2030
- PAYX fair value vs current price
- PAYX insider transactions and insider buying
- Is PAYX undervalued or overvalued?
- Paychex Inc financial analysis — revenue, earnings, cash flow
- PAYX Piotroski F-Score and Altman Z-Score
- PAYX analyst price target and Smart Rating
Paychex Inc
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PAYX Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Paychex Inc (PAYX)
PAYX trades 216% above its Graham fair value of $30.06, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Paychex Inc (PAYX) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, return on equity, operating margin. Concerns around price/book and eps growth. Fundamentals are solid but monitor weak areas for improvement.
Paychex Inc (PAYX) Key Strengths (5)
Every $100 of shareholder equity generates $41 in profit
Keeps $42 of every $100 in revenue after operating costs
Keeps $27 of every $100 in revenue as net profit
84.57% of shares held by major funds and institutions
Large-cap company with substantial market presence
Paychex Inc (PAYX) Areas to Watch (5)
Earnings declining -3.50%, profits shrinking
Very expensive at 8.4x book value
Premium valuation at 5.4x annual revenue
Growth is fairly priced, not cheap, not expensive
Solid revenue growth at 18.30% per year
Supporting Valuation Data
Paychex Inc (PAYX) Detailed Analysis Report
Overall Assessment
This company scores 64/100 in our Smart Analysis, earning a C+ grade. Out of 10 metrics analyzed, 5 register as strengths (avg 9.8/10) while 5 fall into concern territory (avg 3.6/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Return on Equity, Operating Margin, Profit Margin. Profitability is solid with Return on Equity at 40.90%, Operating Margin at 41.70%, Profit Margin at 26.50%.
The Bear Case
The primary concerns are EPS Growth, Price/Book, Price/Sales. Some valuation metrics including PEG Ratio (1.71), Price/Sales (5.39), Price/Book (8.39) suggest expensive pricing. Growth concerns include Revenue Growth at 18.30%, EPS Growth at -3.50%, which may limit upside.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 40.90% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 18.30% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. Strengths and concerns are roughly balanced. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Return on Equity, Operating Margin) and negatives (EPS Growth, Price/Book). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
PAYX Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
PAYX's Price-to-Sales ratio of 5.39x sits near its historical average of 6.28x (23th percentile), suggesting the market is pricing in steady-state growth. The current valuation is 41% below its historical high of 9.08x set in Feb 2007, and 43% above its historical low of 3.77x in Feb 2009.
Compare PAYX with Competitors
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Data-driven financial summary for Paychex Inc (PAYX) · TECHNOLOGY › SOFTWARE - APPLICATION
The Big Picture
Paychex Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 6.0B with 18% growth year-over-year. Profit margins are strong at 26.5%, reflecting pricing power and operational efficiency.
Key Findings
ROE of 40.9% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Profit margin of 26.5% and operating margin of 41.7% demonstrate strong pricing power and operational efficiency.
What to Watch Next
Dividend sustainability with a current yield of 4.5%. Watch payout ratio and free cash flow coverage.
Debt management: total debt of 5.0B is significantly higher than cash (1.5B). Monitor refinancing risk.
Sector dynamics: monitor SOFTWARE - APPLICATION industry trends, competitive moves, and regulatory changes that could impact Paychex Inc.
Bottom Line
Paychex Inc offers an attractive blend of growth (18% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Paychex Inc(PAYX)
NASDAQ
TECHNOLOGY
SOFTWARE - APPLICATION
USA
Paychex, Inc. is an American provider of human resource, payroll, and benefits outsourcing services for small- to medium-sized businesses.