Paychex, Inc. (PAYX)

FairStock Score: 62/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with understandable, recurring economics, and Paychex fits that mold. It handles payroll, benefits, and HR administration for small and midsize firms, where regulatory complexity and switching costs can create sticky customer relationships. The filed numbers show a profitable enterprise: in fiscal 2026, revenue was $6.3B, net income was $1.8B, and diluted EPS was $4.89, versus $5.4B, $1.7B, and $4.58 in fiscal 2025. In fiscal Q1 2027, the quarter ended 2026-08-31, revenue was $1.6B, net income $429.7M, and diluted EPS $1.21. FairStock calculates ROE of 44.77%, FCF of $2.0B, and a 4.9% FCF yield, which are attractive. But the balance sheet and returns are mixed: ROCE is 9.82%, D/E is 1.24, Piotroski is 5/9, Altman Z is 2.64, and the FairStock Score is 62/100. At the 2026-10-26 close of $115.70, FairStock shows P/E 23.66, P/B 11.02, PEG 2.02, EV/EBITDA 14.91, and a Graham Number of $33.84, so the price is far above a conservative asset-and-earnings value. The 4.10% dividend yield and beta of 0.81 add defensiveness. FairStock labels it a FAST GROWER from 21.1% five-year profit growth and 18.1% revenue growth, but recent filed annual EPS has been uneven, so I would demand a wider margin of safety than the current quote offers.

In plain English: Paychex helps small and midsize businesses run payroll, benefits, and HR paperwork. The business earns good profits and generates steady cash, though revenue growth is modest. At $115.70, the price looks full versus its earnings and accounting value rather than cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-08-31) · fiscal Q3 2026 10-Q (period ended 2026-02-28) · fiscal Q2 2026 10-Q (period ended 2025-11-30) · fiscal Q1 2026 10-Q (period ended 2025-08-31) · FY2026 10-K (period ended 2026-05-31) · FY2025 10-K (period ended 2025-05-31) · FY2024 10-K (period ended 2024-05-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer