PAYCHEX INC (PAYX)
Services-Engineering, Accounting, Research, Management · Services-Engineering, Accounting, Research, Management · NASDAQ
$119.93
+1.17%
Investingg Score
68.5 / 100
Hold
Business overview
- Operating margin stands at 38.6%
- Free cash flow margin is recorded at 35.7%
These high margins demonstrate the company's ability to efficiently convert revenue into operating profit and free cash flow.
Financial health
- Free cash flow yield is 5.4%
- Balance sheet pillar score is 42
While the company generates solid cash yields, the lower balance sheet score points to underlying capital structure considerations.
- Gross Margin
- Data unavailable
- Operating Margin
- 38.6%
- Current Ratio
- 1.3x
- Debt / Equity
- 1.22
- Free Cash Flow (TTM)
- $2.3B
- Interest Coverage
- Data unavailable
Valuation
- Price to earnings ratio is 22.94
- Enterprise value to EBITDA is 15.17
- Price to sales ratio is 6.65
These valuation multiples indicate the price investors are currently paying relative to the company's earnings, cash flow, and sales.
- P/E (TTM)
- 22.9x
- Forward P/E
- Data unavailable
- Price / Sales
- 6.7x
- EV / EBITDA
- 15.2x
- FCF Yield
- 5.4%
Key risks
- Uncertainty regarding future earnings growth rates given the current 6.8% YoY figure.
- Potential volatility in valuation multiples such as the P/E ratio of 22.94.
- Dependence on sustaining high operating margins of 38.6% amidst changing market conditions.
Market cap $42.6B · data as of 2026-08-18
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Analyze PAYX with Investingg AINot investment advice. Investingg AI summarizes public data and AI-generated analysis for informational purposes only.