Paychex (PAYX)
Industrials · Payroll and HCM services
Paychex is a cloud-based payroll and human capital management platform serving small to mid-sized businesses and professional employer organizations.
What Paychex does
Paychex provides cloud-based payroll processing, HR management, and employee benefits administration services to small and medium-sized businesses through its Management Solutions segment. The company also operates a PEO (Professional Employer Organization) and insurance solutions business that delivers comprehensive worksite services. Paychex earns service revenue from these offerings plus interest income on client funds held in escrow. The company maintains a strong software-as-a-service model with recurring revenue streams and serves hundreds of thousands of clients through integrated technology platforms.
Themes: ["Small business software","Payroll automation","HR/benefits management","SaaS recurring revenue","Cloud infrastructure","Workforce management","PEO services"]
Fundamentals
- Price$106.26 as of 2026-07-09 close
- Market cap$37.4B as of 2026-07-10
- 1-year return-27.2% as of 2026-07-09 close
- P/E21.25 as of 2026-07-10
- Net margin+27.0% as of 2026-07-10
- Gross margin+87.2% as of 2026-07-10
- ROE+45.1% as of 2026-07-10
- Debt / equity1.22 as of 2026-07-10
- Revenue growth (YoY)+16.9% as of 2026-07-10
- Revenue CAGR (3y)+6.5% SEC XBRL
- Beta0.82 as of 2026-07-10
Dividend: yield +4.5%; 5-year non-decreasing per-share dividend streak (SEC XBRL).
Key risks (from latest filing)
["Rising interest expenses (more than doubled YoY in recent quarters), reflecting increased debt burden and exposure to interest rate risk","Competitive pressure and market saturation in payroll processing, with pricing pressure from larger vendors and consolidation in the market","Heavy dependence on client retention and churn risk, as service revenue growth depends on maintaining and expanding existing customer base"]
Competitors & peers
Fundamentals: Finnhub, as of 2026-07-10. Filings: SEC EDGAR. Prices are delayed daily-close data.
Last updated 2026-07-09.
Informational only — NOT financial advice. All figures are delayed daily-close data from SEC EDGAR & Finnhub, shown with their as-of date.