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PAYCHEX INC
Nasdaq · CIK 723531
Last close98.94
Daily change-1.90 (-1.88%)
10 Years gain+124.50%
Dividends TTM4.54 (+10.19%)
Dividend yield4.50%
Fundamental Analysis
PAYX · STANDARD
SIC 8700 · Services-Engineering, Accounting, Research, Management · Fiscal year end 0531
Fundamental
64.0Momentum
37.7Acceleration
22.6Confidence
83.0Annual Revenue19
Quarterly Revenue82
Annual CFO18
Balance SheetAvailable
RankingEligible
Score Breakdown
Growth14.8 / 25
Quality17.4 / 25
Capital Efficiency11.9 / 20
Balance Sheet6.2 / 15
Shareholder Economics8.9 / 10
Forward Indicators4.8 / 5
Signals
Gross margin expansionGross margin improved by 2.1631 percentage points.
Share count reductionDiluted share count declined 1.4917%.
Warnings
Operating margin compression · MEDIUMOperating margin compressed by 2.4647 percentage points.
ROIC declining · MEDIUMROIC declined by 17.6463 percentage points.
Possible growth trap · HIGHRevenue growth is high, but quality indicators are deteriorating.
Key Metrics
Revenue Growth TTM23.31%OK
Revenue CAGR 3Y8.69%OK
Gross Margin73.34%OK
Operating Margin39.9%OK
FCF Marginn/aMISSING
FCF Growthn/aINSUFFICIENT_HISTORY
ROIC36.09%OK
Incremental Operating Margin 3Y38.6%OK
Net Debt / CFOn/aNOT_MEANINGFUL
Diluted Share Growth 1Y-1.49%OK
SBC / Revenuen/aMISSING
SBC / FCFn/aNOT_MEANINGFUL
Financial History
| Period | Revenue | Gross Profit | Operating Income | CFO | FCF | Gross Margin | Op Margin | FCF Margin | ROIC | Shares |
|---|---|---|---|---|---|---|---|---|---|---|
| 2026 FY May 31, 2026 | $6.30B | $4.63B | $2.51B | $2.56B | $2.32B | 73.43% | 39.84% | 36.85% | 26.23% | 360M |
| 2026 FY May 31, 2025 | $5.41B | $3.87B | $2.21B | $1.90B | $1.71B | 71.53% | 40.81% | 31.59% | 32% | 362M |
| 2026 FY May 31, 2024 | $5.13B | $3.65B | $2.17B | $1.90B | $1.74B | 71.18% | 42.36% | 33.83% | 57.21% | 362.1M |
| 2025 FY May 31, 2023 | $4.91B | $3.45B | $2.03B | $1.71B | $1.56B | 70.39% | 41.43% | 31.85% | 57.73% | 362.3M |
| 2024 FY May 31, 2022 | $4.55B | $3.20B | $1.84B | $1.59B | $1.46B | 70.22% | 40.4% | 31.97% | 52.29% | 363.1M |
Formula Trace
| Metric | Value | Formula | Status | Source |
|---|---|---|---|---|
| Revenue TTM | $6.33B | sum latest 4 fiscal quarters Revenue | OK | 0000723531-26-000006, 0001193125-25-328698 |
| Revenue Growth TTM | 23.31% | Revenue_TTM / Revenue_TTM_1Y_ago - 1 | OK | 0000723531-26-000006, 0001193125-25-328698 |
| Revenue CAGR 3Y | 8.69% | (Revenue_current / Revenue_3Y_ago)^(1/3) - 1 | OK | 0001193125-26-307785 |
| Revenue CAGR 5Y | 9.53% | (Revenue_current / Revenue_5Y_ago)^(1/5) - 1 | OK | 0001193125-26-307785 |
| Gross Profit CAGR 3Y | 10.23% | (GrossProfit_current / GrossProfit_3Y_ago)^(1/3) - 1 | OK | 0001193125-26-307785 |
| Operating Income Growth | 16.14% | OperatingIncome_current / OperatingIncome_prior_year - 1 | OK | 0000723531-26-000006, 0001193125-25-328698 |
| FCF Growth | n/a | FCF_current / FCF_prior_year - 1 | INSUFFICIENT_HISTORY | derived |
| Revenue Growth Acceleration | n/a | 0.5*(Q0-Q1)+0.3*(Q1-Q2)+0.2*(Q2-Q3) | INSUFFICIENT_HISTORY | derived |
| Gross Profit Acceleration | n/a | 0.5*(Q0-Q1)+0.3*(Q1-Q2)+0.2*(Q2-Q3) | INSUFFICIENT_HISTORY | derived |
| Operating Income Acceleration | n/a | 0.5*(Q0-Q1)+0.3*(Q1-Q2)+0.2*(Q2-Q3) | INSUFFICIENT_HISTORY | derived |
| FCF Acceleration | n/a | 0.5*(Q0-Q1)+0.3*(Q1-Q2)+0.2*(Q2-Q3) | INSUFFICIENT_HISTORY | derived |
| Gross Margin | 73.34% | Gross Profit / Revenue | OK | 0000723531-26-000006, 0001193125-25-328698 |
| Operating Margin | 39.9% | Operating Income / Revenue | OK | 0000723531-26-000006, 0001193125-25-328698 |
| ROIC | 36.09% | NOPAT / Average Invested Capital | OK | 0000723531-26-000006, 0001193125-25-328698 |
| Net Debt / CFO | n/a | Net Debt / CFO | NOT_MEANINGFUL | 0000723531-26-000006 |
| Current Ratio | 1.28x | Current Assets / Current Liabilities | OK | derived |
| Cash / Debt | 0.21x | (Cash + Short-term Investments) / Total Debt | OK | 0000723531-26-000006 |
| Revenue per Diluted Share | $17.75 | Revenue / Diluted Shares | OK | 0000723531-26-000006, 0001193125-25-328698 |