Market Cap: 39.3599B; Large Cap
P/E Ratio: 22.63; Fwd: 18.45
EPS (TTM): $4.89
Div. Yield: 0.00%

PAYXNASDAQ— Paychex Inc Price & Analysis

Paychex Inc

TECHNOLOGY — SOFTWARE - APPLICATION

$113.55

+$2.89+2.61%

Market Cap: 39.3599B; Large Cap
P/E Ratio: 22.63; Fwd: 18.45
EPS (TTM): $4.89
Div. Yield: 0.00%

Technical Summary

RSI (14)64.69Neutral

SMA (50)$101.51Bullish

SMA (200)$102.24Bullish

MACD3.5665Bullish

Bollinger$98.31 – $117.93Mid

Stochastic57.53Neutral

Theo Outlook

Paychex Inc. presents a moderately bullish thesis with a trailing P/E of 23.44, forward P/E of 19.19, and market capitalization of $40.68 billion. The company delivered EPS of $4.88 alongside 12.5% year-over-year quarterly revenue growth to $3.968 billion TTM, supported by a 26.6% profit margin and 40.3% return on equity. These metrics reflect stable demand for its HR and payroll services amid a resilient small-business segment.

Key catalysts include continued earnings momentum from the latest quarter ending May 31, 2026, analyst target price of $106.57, and expansion in benefits outsourcing. Paychex benefits from recurring revenue streams and operational leverage, with gross profit of $2.666 billion TTM driving margin expansion and potential market share gains in the SMB space.

Risks encompass regulatory changes in payroll and benefits compliance, competition from larger players like ADP, and macro headwinds such as economic slowdowns affecting small businesses. Mitigations include Paychex's established scale, 86.6% institutional ownership, and low beta of 0.889, which provide defensive positioning and pricing power.

Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.

Theo Outlook

Paychex Inc. presents a moderately bullish thesis with a trailing P/E of 23.44, forward P/E of 19.19, and market capitalization of $40.68 billion. The company delivered EPS of $4.88 alongside 12.5% year-over-year quarterly revenue growth to $3.968 billion TTM, supported by a 26.6% profit margin and 40.3% return on equity. These metrics reflect stable demand for its HR and payroll services amid a resilient small-business segment.

Key catalysts include continued earnings momentum from the latest quarter ending May 31, 2026, analyst target price of $106.57, and expansion in benefits outsourcing. Paychex benefits from recurring revenue streams and operational leverage, with gross profit of $2.666 billion TTM driving margin expansion and potential market share gains in the SMB space.

Risks encompass regulatory changes in payroll and benefits compliance, competition from larger players like ADP, and macro headwinds such as economic slowdowns affecting small businesses. Mitigations include Paychex's established scale, 86.6% institutional ownership, and low beta of 0.889, which provide defensive positioning and pricing power.

Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.

Company Overview

Paychex, Inc. is an American provider of human resource, payroll, and benefits outsourcing services for small- to medium-sized businesses.

Fundamental Snapshot

Revenue: 3.968B
EBITDA: 1.608B
Gross Profit: 2.6664B
Operating Margin: 38.3%
Profit Margin: 26.6%
ROE: 40.3%
Book Value: $10.5
Beta: 0.889
52-Wk High: $143.34
52-Wk Low: $84.36
Avg Volume: 2.7427M
PEG Ratio: 1.943

Frequently Asked Questions

What is Paychex's business model?

Paychex provides human resource, payroll, and benefits outsourcing services primarily to small- and medium-sized businesses. It generates recurring revenue through subscription-based services, with TTM revenue of $3.968 billion and a 26.6% profit margin.

What are Paychex's main revenue sources?

Revenue primarily comes from payroll processing, HR administration, and benefits services. The company reported $3.968 billion TTM revenue with 12.5% quarterly growth year-over-year and gross profit of $2.666 billion.

What are Paychex's competitive advantages?

Trading Data

Open: $111.23
Previous Close: $110.66
Day Range: $110.64 – $114.35
Volume: 2.7428M
Shares Outstanding: 355.683M
Analyst Target: $108.5

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Fundamental Snapshot

Revenue: 3.968B
EBITDA: 1.608B
Gross Profit: 2.6664B
Operating Margin: 38.3%
Profit Margin: 26.6%
ROE: 40.3%
Book Value: $10.5
Beta: 0.889
52-Wk High: $143.34
52-Wk Low: $84.36
Avg Volume: 2.7427M
PEG Ratio: 1.943

Frequently Asked Questions

What is Paychex's business model?

Paychex provides human resource, payroll, and benefits outsourcing services primarily to small- and medium-sized businesses. It generates recurring revenue through subscription-based services, with TTM revenue of $3.968 billion and a 26.6% profit margin.

What are Paychex's main revenue sources?

Revenue primarily comes from payroll processing, HR administration, and benefits services. The company reported $3.968 billion TTM revenue with 12.5% quarterly growth year-over-year and gross profit of $2.666 billion.

What are Paychex's competitive advantages?

Paychex benefits from deep SMB market penetration, scale with 355.6 million shares outstanding, and high returns on equity of 40.3%. Its low beta of 0.889 and 86.6% institutional ownership provide stability versus competitors.

What are the key risks for Paychex investors?

Key risks include regulatory shifts in payroll compliance, competition from ADP, and macro slowdowns impacting SMB clients. The stock trades at a trailing P/E of 23.44 with a 52-week range of $84.36 to $143.34.

What is Paychex's growth outlook?

Analysts see upside with a $106.57 target price and forward P/E of 19.19. Growth is supported by 12.5% revenue expansion, upcoming earnings around the August 28, 2026 dividend date, and continued demand for outsourced HR services.