Paychex (PAYX) Stock Analysis

November 11, 2026

This is a peer-relative look at Paychex (PAYX): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Commercial & Professional Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Paychex (PAYX)
Profile Item	PAYX
Name	Paychex Inc.
Country/Region	United States
GICS Sector	Industrials
GICS Industry Group	Commercial & Professional Services
GICS Industry	Professional Services
GICS Sub-Industry	Human Resource & Employment Services
Market Capitalization	41.67 billion USD
Currency	USD
Exchange	Nasdaq
Listing Date	August 26, 1983
Security Type	Common Stock

Price Performance

Cumulative Growth

PAYX

GSPC

Paychex (PAYX) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Paychex (PAYX) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Paychex (PAYX) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Paychex (PAYX) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: PAYX	Industry group median
Total Return (1Y)	7.76%	10.68%
Total Return (3Y, Annualized)	4.26%	12.68%
Total Return (5Y, Annualized)	1.96%	3.62%

Risk Profile

Drawdown History

PAYX

GSPC

Paychex (PAYX) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Paychex (PAYX) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Paychex (PAYX) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: PAYX	Industry group median
Volatility (1Y, Annualized)	30.84%	42.02%
Beta (5Y)	0.79	0.79
Max Drawdown (5Y)	-44.95%	-54.59%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. PAYX is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Paychex (PAYX) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: PAYX	Industry group median
Sharpe Ratio (1Y)	0.11	0.19
Sortino Ratio (1Y)	0.16	0.27

Profitability

ROE (TTM)

Paychex (PAYX) posts ROE of 47.06%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

PAYX

Commercial & Professional Services industry group

47.06%

Group distribution

PAYX: 47.06%
Max: 47.06%
Q3: 25.43%
Median: 14.11%
Q1: 3.92%
Min: -20.15%

Largest peers

RELX: 131.86%
ADP: 78.94%
PAYX: 47.06%
CTAS: 41.38%
WM: 31.68%
RSG: 18.48%
TRI: 14.11%

Where Paychex (PAYX) stands on ROE within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Paychex (PAYX) keeps 27.35% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.

PAYX

Commercial & Professional Services industry group

27.35%

Group distribution

PAYX: 27.35%
Max: 23.28%
Q3: 11.35%
Median: 5.65%
Q1: 0.87%
Min: -8.60%

Largest peers

PAYX: 27.35%
RELX: 23.27%
ADP: 20.33%
TRI: 19.69%
CTAS: 17.82%
RSG: 12.92%
WM: 11.78%

Where Paychex (PAYX) stands on net margin within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Paychex (PAYX) turns 38.50% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

PAYX

Commercial & Professional Services industry group

38.50%

Group distribution

PAYX: 38.50%
Max: 38.50%
Q3: 18.84%
Median: 10.40%
Q1: 5.59%
Min: -12.00%

Largest peers

PAYX: 38.50%
RELX: 32.01%
ADP: 26.73%
CTAS: 24.10%
TRI: 21.93%
RSG: 20.29%
WM: 19.08%

Where Paychex (PAYX) stands on operating margin within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Paychex (PAYX) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: PAYX	Industry group median
ROE (TTM)	47.06%	14.11%
ROA (TTM)	10.19%	5.83%
Net Margin (TTM)	27.35%	5.65%
Operating Margin (TTM)	38.50%	10.40%
Gross Margin (TTM)	74.39%	36.58%

Growth

Revenue Growth

Paychex (PAYX) grew revenue 16.88%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.

Paychex (PAYX): Revenue Growth across different time periods, set against Commercial & Professional Services industry-group medians.

EPS Growth

Paychex (PAYX) grew earnings per share 6.77%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

Paychex (PAYX): EPS Growth across different time periods, set against Commercial & Professional Services industry-group medians.

Growth Metrics

Paychex (PAYX) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: PAYX	Industry group median
Revenue Growth (YoY)	16.88%	6.05%
Revenue Growth (3Y CAGR)	9.15%	6.33%
EPS Growth (YoY)	6.77%	5.05%
EPS Growth (3Y CAGR)	4.38%	9.63%

Financial Strength

Current Ratio (MRQ)

Paychex (PAYX) has current ratio of 1.28, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.

PAYX

Commercial & Professional Services industry group

1.28

Group distribution

Max: 3.63
Q3: 2.14
Median: 1.55
PAYX: 1.28
Q1: 1.09
Min: 0.45

Largest peers

CTAS: 1.45
PAYX: 1.28
TRI: 1.08
ADP: 1.03
WM: 0.82
RSG: 0.75
RELX: 0.45

Where Paychex (PAYX) stands on current ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Paychex (PAYX) has debt-to-equity ratio of 1.25, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

PAYX

Commercial & Professional Services industry group

1.25

Group distribution

Max: 2.37
Q3: 1.25
PAYX: 1.25
Median: 0.88
Q1: 0.35
Min: 0.00

Largest peers

RELX: 7.10
WM: 2.37
PAYX: 1.25
RSG: 1.17
ADP: 1.10
CTAS: 0.52
TRI: 0.36

Where Paychex (PAYX) stands on debt-to-equity ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Paychex (PAYX) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: PAYX	Industry group median
Current Ratio (MRQ)	1.28	1.55
Debt / Equity (MRQ)	1.25	0.88
Net Debt / EBITDA	1.20	2.51

Dividends

Dividend Yield (TTM)

Paychex (PAYX) has dividend yield of 3.80%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.

PAYX

Commercial & Professional Services industry group

3.80%

Group distribution

Max: 4.33%
PAYX: 3.80%
Q3: 1.80%
Median: 0.60%
Q1: 0.00%
Min: 0.00%

Largest peers

PAYX: 3.80%
ADP: 2.21%
TRI: 2.18%
RELX: 1.66%
WM: 1.52%
RSG: 1.02%
CTAS: 0.83%

Where Paychex (PAYX) stands on dividend yield within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Paychex (PAYX) has payout ratio of 90.08%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.

PAYX

Commercial & Professional Services industry group

90.08%

Group distribution

Max: 99.58%
PAYX: 90.08%
Q3: 41.99%
Median: 17.27%
Q1: 0.00%
Min: -17.94%

Largest peers

PAYX: 90.08%
TRI: 79.09%
ADP: 60.28%
RELX: 53.59%
WM: 48.03%
CTAS: 36.88%
RSG: 35.25%

Where Paychex (PAYX) stands on payout ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Paychex (PAYX) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: PAYX	Industry group median
Dividend Yield (TTM)	3.80%	0.60%
Dividend Payout Ratio (TTM)	90.08%	17.27%

Valuation

P/E Ratio (TTM)

Paychex (PAYX) trades at P/E ratio of 23.23, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

PAYX

Commercial & Professional Services industry group

23.23

Group distribution

Max: 49.47
Q3: 33.76
Median: 24.16
PAYX: 23.23
Q1: 16.01
Min: 1.89

Largest peers

CTAS: 43.86
TRI: 34.53
RSG: 34.19
WM: 31.01
ADP: 26.89
RELX: 24.05
PAYX: 23.23

Where Paychex (PAYX) stands on P/E ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Paychex (PAYX) trades at 6.31 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

PAYX

Commercial & Professional Services industry group

6.31

Group distribution

Max: 7.17
PAYX: 6.31
Q3: 3.35
Median: 1.33
Q1: 0.69
Min: 0.11

Largest peers

CTAS: 7.64
RELX: 7.17
PAYX: 6.31
TRI: 6.09
ADP: 5.38
RSG: 4.36
WM: 3.60

Where Paychex (PAYX) stands on P/S ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Paychex (PAYX) trades at 11.25 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.

PAYX

Commercial & Professional Services industry group

11.25

Group distribution

PAYX: 11.25
Max: 11.25
Q3: 6.08
Median: 2.92
Q1: 1.55
Min: -2.78

Largest peers

RELX: 169.44
ADP: 23.57
CTAS: 17.07
PAYX: 11.25
WM: 9.52
RSG: 6.15
TRI: 4.35

Where Paychex (PAYX) stands on P/B ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Paychex (PAYX) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: PAYX	Industry group median
P/E Ratio (TTM)	23.23	24.16
P/S Ratio (TTM)	6.31	1.33
P/B Ratio (MRQ)	11.25	2.92
Free Cash Flow Yield (TTM)	4.53%	5.35%