Paychex, Inc. (PAYX) — Stock Score Summary

Paychex, Inc. (PAYX) has a MoatMap StockRank of 34/100 based on Quality (44/100), Value (45/100), and Momentum (31/100) factor scores. The current signal is SELL. Paychex is a high-quality business with solid ROIC, but it is a mature payroll processor whose growth is tied to employment cycles. It lacks a powerful, unpriced macro tailwind from our identified themes.

Paychex, Inc. is a leading provider of comprehensive human capital management (HCM) solutions, including payroll, HR administration, benefits, and retirement services, primarily targeting small and medium-sized businesses (SMBs). The company benefits from an extensive client base and high switching costs for its integrated platform, which simplifies complex regulatory and administrative burdens for SMBs. Paychex's strong customer service and tailored solutions solidify its position as a market leader in outsourced HR and payroll.

Key Financial Metrics

Price$99.93
Market Cap$34.2B
P/E (TTM)21.96
P/E (Forward)16.87
Price/Book8.88
Return on Invested Capital23.7%
Debt/Equity124.91
Gross Margin67.2%
Operating Margin44.4%
Revenue Growth19.9%
Dividend Yield4.8%

Paychex, Inc. operates in the Software - Application industry, part of the Technology sector (United States).

Frequently Asked Questions

What is Paychex, Inc.’s (PAYX) StockRank?
MoatMap’s StockRank for Paychex, Inc. (PAYX) is 34/100, with a Sell signal. It is a composite of Quality (44), Value (45), and Momentum (31) factor ranks across MoatMap’s 19,000+ stock universe.
Does Paychex, Inc. have an economic moat?
Paychex, Inc. (PAYX) has a Quality factor score of 44/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Paychex, Inc. a buy, hold, or sell?
MoatMap’s current signal for Paychex, Inc. (PAYX) is Sell, based on a StockRank of 34/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is Paychex, Inc. in?
Paychex, Inc. (PAYX) operates in the Technology sector, specifically the Software - Application industry (United States).