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Not financial advice. Analytical data for research only.
Intrinsiqq is a Netherlands-based company operating in Rotterdam, KvK 73238007.
Unless we state otherwise or the context otherwise requires, the terms Paychex, we, us, our and the Company refer to Paychex, Inc., a Delaware corporation, and its consolidated subsidiaries. Overview We are an industry-leading human capital management ( HCM ) company delivering a full suite of technology and advisory solutions in human resources ( HR ), employee benefit solutions, insurance, an…
$125.64
$1.70 (-1.34%)
EOD Sep 1, 2026
Margins and capital returns are both well above average: 38.55% operating margin, ROIC at 22.35%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue grew 16.9%, still solid.
At 26x earnings, the current multiple leaves limited room for execution misses or growth deceleration. ROIC dropped from 24.37% to 22.35%, capital efficiency is deteriorating.
25.7x earnings, 19.5x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$6.51B
▲ +16.9% YoY
Net Income (TTM)
$1.76B
▲ +6.2% YoY
Op. Margin
38.55%
▼ -1.1pp YoY
ROIC
22.35%
▼ -2.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$2.32B
▲ +35.8% YoY
Op. Cash Flow (TTM)
$2.56B
▲ +34.5% YoY
Net Debt
$3.51B
Cash & Equiv.
$1.12B
5Y CAGR: +9.9%
5Y CAGR: +15.2%
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SourceComputed from the 10-Q filed 17 Jul 2026, covering the period ending 31 May 2026, as reported to the SEC. Data last refreshed 3 Aug 2026. How this is calculated.
Price from market data, last close as of 1 Sept 2026. Fiscal year ends May. Sector medians are approximate S&P 500 benchmarks and update periodically.
At a P/E of 25.7 and a price-to-free-cash-flow of 19.5, Paychex (PAYX) trades below a two-stage DCF intrinsic value of about $169.14 per share, so at $125.64 the stock looks undervalued (34.6% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Paychex scores 67/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 3.5%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $169.14 per share for PAYX, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $126.85. At today's $125.64, that puts the stock about 34.6% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Paychex scores 67 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 38.6% operating margin and a 22.3% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Yes, Paychex pays a regular dividend of about $4.42 per share per year (typically in quarterly installments), a yield of roughly 3.5% at the current price. That is a payout ratio of about 90.3% of earnings, so the dividend is stretched at this level. Paychex has grown the dividend at roughly 12.3% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For PAYX's full payout history, growth streak and dividend-safety score, see the dividends tab.
That depends on valuation and quality together, not either alone. PAYX currently trades below its estimated intrinsic value and scores 67/100 on quality (solid). It also yields about 3.5%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.