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Stocks/Industrials/Human Resource & Employment Services

PaychexPAYX

Human Resource & Employment Services · Penfield, New York · In the S&P 500
High qualityCheaper than peers
$112.12+2.51%After hours: $111.50 (−0.55%)At the close, 30 Oct · Prices from CNBC, may be delayed
▼ 4.5% over 1 year
Paychex over 1 yearDaily close, $, to 30 Oct 2026
$100$120Nov2026MarMayJulSep$112.12$100$120NovMarJul$112.12
Source: Nasdaq daily closes
Market value$39.91B
Price to earnings22.3x
Forward P/E18.5x
Dividend yield4.25%
Year to date−0.1%
One year−4.5%
Next earningsNot scheduled
SectorIndustrials
52-week range (closes)
$85.57$127.34

Quality and valuation

How Paychex compares with other industrials stocks. A description, not a recommendation.

Paychex and 7 human resource & employment services peers. Across: valuation (P/E) against the sector. Up: business quality against the sector. Hover or tap a logo for its numbers.

Business quality: stronger than mostValuation: cheaper than most

A stronger business than most industrials companies, priced below most of them.

Paychex trades at 18.5 times the next 12 months of expected earnings, against a median of 21.4x for the 89 industrials stocks we cover. The quality score blends where it ranks on revenue growth, gross margin, operating margin and free-cash-flow margin (net margin for banks and insurers) over the last 12 months, from SEC filings.

  • Revenue grew faster than the sector median: +14.0% vs +8.2%
  • Keeps more of each sale (gross margin): 74.4% vs 38.1%
  • More profitable (operating margin): 39.2% vs 17.5%
  • Turns more of its sales into cash: 30.5% vs 13.1%
PAYX trades at 18.5x forward earnings, below the sector medianForward p/e, Human Resource & Employment Services peers
PAYX18.5xLMT20.6xCAT21.6xUNP22.3xRTX26.8xDE32.3xGE35.7xGEV40.8xSector median 21.4xPAYX18.5xLMT20.6xCAT21.6xUNP22.3xRTX26.8xDE32.3xGE35.7xGEV40.8xSector median 21.4x
Source: CNBC quotes; Mostly Markets
At 22.2x earnings, PAYX is cheaper than its average since Oct 2024Price over the last 12 months of reported (GAAP) diluted EPS
P/EUsual range (±1 s.d.)
20x25x30xAverage 26.8x2025202622.2x20x30xAverage 26.8x2025202622.2x
Source: Nasdaq prices; SEC filings

Financials

From Paychex's SEC filings, through the quarter ending 31 Aug 2026. Hover or tap a bar for its value.

Revenue grew 5.9% from a year earlierQuarterly revenue, $bn, latest Q1 ’27
$0.0bn$0.5bn$1.0bn$1.5bnQ2 ’25Q4 ’25Q2 ’26$1.6bnQ1 ’27$0bn$1bnQ2 ’25Q4 ’25Q2 ’26$1.6bnQ1 ’27
Source: SEC filings
Growth slowed to +5.9% last quarterRevenue growth, year on year, %
0%5%10%15%Q2 ’25Q4 ’25Q2 ’265.9%Q1 ’270%10%Q2 ’25Q4 ’25Q2 ’265.9%Q1 ’27
Source: SEC filings
Operating margin was 38.0% last quarterOperating income as a share of revenue, %
0%20%40%Q2 ’25Q4 ’25Q2 ’2638.0%Q1 ’270%20%40%Q2 ’25Q4 ’25Q2 ’2638.0%Q1 ’27
Source: SEC filings
Free cash flow was $2.0 billion over 12 monthsQuarterly free cash flow (operating cash flow minus capex), $m
$0m$200m$400m$600mQ2 ’25Q4 ’25Q2 ’26$357mQ1 ’27$0m$500mQ2 ’25Q4 ’25Q2 ’26$357mQ1 ’27
Source: SEC filings
Last 12 monthsPAYXSector median
Revenue growth+14.0%+8.2%
Gross margin74.4%38.1%
Operating margin39.2%17.5%
Free cash flow margin30.5%13.1%
Price to earnings22.3x25.8x

Stories on Paychex

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Similar companies

Human Resource & Employment Services, by market value.

CompanyPriceTodayYTDValue
GEGE Aerospace$301.80−3.59%−2.0%$312B
CATCaterpillar$622.75−3.81%+8.7%$286B
RTXRTX$199.80+0.20%+8.9%$270B
GEVGE Vernova$857.87−3.38%+31.3%$227B
DEDeere &$675.48+2.35%+45.1%$182B
UNPUnion Pacific$304.00+0.69%+31.4%$181B
LMTLockheed Martin$636.95−1.03%+31.7%$147B
ETNEaton$369.97−6.03%+16.2%$144B