Paychex PAYX
Paychex is a provider of payroll, HR, and benefits solutions for small and medium-sized businesses in the US. Paychex shows solid financial health (score 7.29) with low debt (ND/EBITDA 1.20x) and exceptional quality (ROIC 30.41%, ROE 47.05%), although its 5.90% revenue growth is moderate and the 90.08% payout limits room for dividend increases.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Paychex is a provider of payroll, HR, and benefits solutions for small and medium-sized businesses in the US. Paychex shows solid financial health (score 7.29) with low debt (ND/EBITDA 1.20x) and exceptional quality (ROIC 30.41%, ROE 47.05%), although its 5.90% revenue growth is moderate and the 90.08% payout limits room for dividend increases.
Score by category
| Category | Score |
|---|---|
| Financial health | 7.3 |
| Quality / Moat | 9.0 |
| Valuation | 6.5 |
| Growth | 6.3 |
| Dividend | 6.3 |
| Momentum | 6.4 |
| Risk & Context | 7.3 |
OVERALL SCORE: 7.2/10
Context and risks
No material exposure to interest rates (net debt/EBITDA of 1.20x), commodities, or direct geopolitical risks. The payroll and HR business is defensive and unaffected by the oil rally or Middle East tensions.
News considered in the analysis
- These 4 Dividend Stocks Turn Customer Loyalty Into Growing Income — Listículo genérico sin información específica sobre Paychex.
- Beyond the Sell‑Off: Why Paychex (PAYX)’s PEO Engine Still Matters — Análisis positivo del motor PEO, que refuerza la tesis de crecimiento a largo plazo, aunque el mercado ya lo descuenta parcialmente.
- Paychex (PAYX) Beats EPS Estimates, But Slow Growth Weighs on Shares — Resultados que superan estimaciones pero con crecimiento lento; la reacción del precio ya refleja la decepción.
- Why Paychex Stock Slumped This Week — La caída semanal ya está descontada en el precio actual.
- Paychex Plunges, Providing the Entry Investors Have Been Waiting For — Opinión de que la caída es una oportunidad de compra; refuerza el atractivo valorativo, aunque es una opinión de analista.
Verdict: Hold: defensive quality at a fair price, with an attractive 4.70% dividend and no material macro risks.
Main risk: Slow revenue growth (5.90%) and a high payout (90.08%) limit the ability to accelerate the dividend, in an environment where the market penalizes moderate-growth companies.
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