# Paychex Inc (PAYX) — Stock CV

Paychex Inc is a $37.0B technology company. Revenue grew 14.0% over the last year, and it keeps 27¢ of every dollar of sales as profit. It trades at 20.5× earnings — near the lowest of its own history.

> Paychex is a cloud-based human capital management provider offering payroll, compliance, talent management, benefits administration, and retirement services. The firm also provides HR outsourcing services, including professional employer organization, or PEO, offerings, enabling clients to reduce HR overhead.

## Identity

- **Ticker**: PAYX
- **Sector**: Technology
- **Industry**: Services-Engineering, Accounting, Research, Management
- **Headquarters**: ROCHESTER, NY
- **Employees**: 17 600
- **Website**: https://www.paychex.com
- **Market cap**: $37.0B
- **Last price**: $104.00
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $6.60B
- **Net income**: $1.81B
- **Free cash flow**: $2.02B
- **P/E**: 20.5
- **Revenue growth (YoY)**: 14.0%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 77 |
| Growth | 56 |
| Profitability | 75 |
| Health | 37 |
| Quality | 100 |
| Moat | 100 |

## Qualifications (beginner checklist) — 10 of 11 passed

- [x] Revenue growing — +14.0% YoY
- [x] Profitable — $1.81B TTM
- [x] Profit growing — +4.4% YoY
- [x] Generates cash — $2.02B TTM
- [x] Debt under control — current ratio 1.28
- [x] Established company — $37.0B market cap
- [x] Not printing shares — -0.6% shares over ~5y
- [x] Proven track record — 11/11 profitable years
- [ ] Financially stable — health score 37/100
- [x] Pays a dividend — yield 4.39%
- [x] Valuation not extreme — P/E 20.5

## Experience (career milestones)

- **FY2026** — Best year on record: $1.76B net income
- **2025** — It acquired Paycor for $4.1 billion In May 2025, Paychex acquired SixFifty, the legal tech unit of U.S
- **FY2020** — Became debt-free: cash now exceeds total debt
- **2018** — It acquired Lessor Group 2018
- **FY2016** — Profitable every year on record: 11 consecutive profitable years in our data
- **FY2016** — Revenue already above $1B: $2.95B in first reported year
- **FY2016** — Positive free cash flow every year since: 11-year streak
- **2014** — Paychex and IHS Markit launched a Small Business Jobs Index in 2014 that measures the health of businesses employing…
- **2013** — Between 2013 and 2017, it purchased myStaffingPro NETtime solutions Advance Partners
- **2007** — The company purchased Hawthorne Benefit Technologies in 2007, SurePayroll, Inc
- **2002** — Between 2002 and 2003, it acquired Advantage Payroll Services, Interpay
- **1996** — The company acquired Olsen Computer Systems and National Business Systems
- **1995** — Paychex acquired Pay-Fone in 1995
- **1983** — The company (ticker symbol: PAYX) became a public company via an initial public offering
- **1971** — Paychex was founded in 1971 by Tom Golisano, who started the company with only $3,000

## Strengths

- High gross margin (91.3%)
- Strongly profitable — 27.4% net margin
- Revenue growing 14.0% year over year
- Strong cash conversion — FCF is 30.5% of revenue
- Interest covered 12.2× by operating earnings

## Watch-outs

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2022 | $4.61B | $1.39B | $1.37B |
| FY2023 | $5.01B | $1.56B | $1.56B |
| FY2024 | $5.28B | $1.69B | $1.74B |
| FY2025 | $5.57B | $1.66B | $1.71B |
| FY2026 | $6.51B | $1.76B | $2.32B |

---

Source: https://stockcv.com/PAYX — derived from company filings; may be delayed or incomplete. Information, not investment advice.