NASDAQ: PAYX
Paychex, Inc.
Industrials · Staffing & Employment Services
After hours: $121.00(-0.15%) · as of 7:34 PM ET
Market Cap
$43.10B
52w High
$141.59
52w Low
$85.45
P/E
24.79
Volume
1.57M
Outstanding Shares
355.68M
Price vs Fundamentals
Why The Stock Is Moving
What changed
The stock fell 12.57% over the last year. Revenue grew 16.88% over the trailing twelve months. Operating margin moved from 39.62% to 38.55%. Free cash flow grew 31.12% over the trailing twelve months.
What the market seems to be pricing
Visible fundamentals weakened far less than the stock price, and the shares now sit around the 5th percentile of their historical P/FCF range. That looks more like a rerating of the multiple than a collapse in the business.
What would invalidate this read
This read changes if operating margin (currently 38.55%) continues to decline, or if revenue growth turns negative. The bull case requires the business to hold its current trajectory.
Company profile
Founded in 1971 and headquartered in Rochester, New York, Paychex, Inc. delivers comprehensive human capital management (HCM) solutions.
Valuation
Stock splits
Every 2 shares became 3
Every 2 shares became 3
Every 2 shares became 3
Every 2 shares became 3
Every 2 shares became 3
Every 2 shares became 3
Every 2 shares became 3
Every 2 shares became 3
Profitability & growth
Analyst consensus
5
Buy
19
Hold
6
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Sep 29, 2026
Q3 FY26 · EPS est $1.33 · Revenue est $1.63B
View
Dividends
$4.54/shareQuarterlyDividend Achiever · 12yrAdequatePAYX pays a dividend with a 3.75% dividend yield, 12 consecutive years of growth, growing at 11.22% annually, covered 1.5× by free cash flow.
Dividend Yield
3.75%
Annual Div / Share
$4.54
5yr CAGR
+11.22%
Doubles every ~6.5yr
Payout Ratio
90.31%
Adequate
Dividend Growth Rate
3yr CAGR
+11.68%
5yr CAGR
+11.22%
10yr CAGR
+10.18%
Dividend History
Annual dividends paid per share
Income Projection
Today
$3/mo
In 5 yrs
$5/mo
In 10 yrs
$9/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$37/yr $3/mo | $64/yr+70% $5/mo | $108/yr+190% $9/mo |
Yield-on-cost grows from 3.75% → 10.85% over 10yr
Analysis
Dividend Strengths
Dividend Achiever
PAYX has raised its dividend for 12 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.
Strong dividend growth rate
The 5-year CAGR of 11.22% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
High payout ratio
With 90.31% of earnings paid as dividends, there is limited retained earnings for reinvestment — and a dividend cut becomes more likely if earnings decline.