Paychex (PAYX) - 12.40% Below 52-Week High: Buy or Wait?

Stock Details

Paychex, Inc. (PAYX), a prominent company in the technology sector within the software - application industry, is based in United States and primarily trades on the NMS.Currently, the stock is trading at $112.11. Over the past 52 weeks, it has ranged between $85.45 and $127.98. This places the current price at 87.6% of its 52-week high and 31.2% above its 52-week low. Recent trading volume was recorded at 3,538,002. The 14-day Relative Strength Index (RSI) stands at 54.94, suggesting neutral conditions. The stock is currently trading below its 50-day moving average of $113.02 by 0.81%. Similarly, it is above its 200-day moving average of $103.42 by 8.40%. The MACD histogram is 0.47, indicating bullish momentum (MACD Line: 0.96, Signal Line: 0.48). The International Securities Identification Number (ISIN) for this stock is US7043261079. There is currently 1 active alert set for PAYX by users.

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

22.25

Near market average

Forward P/E

17.55

Earnings expected to grow

PEG Ratio

2.04

Potentially overvalued

Price to Book

10.77

EV/EBITDA

14.16

EPS (TTM)

$5.04

Price to Sales

6.05

Beta

0.85

Less volatile than market

Q:How is PAYX valued relative to its earnings and growth?

Paychex, Inc. trades at a P/E ratio of 22.25, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 17.55 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.04 indicates a premium valuation even accounting for growth.

Q:What is PAYX's risk profile compared to the market?

With a beta of 0.85, Paychex, Inc. is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 10.77 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

27.35%

Operating Margin

38.50%

EBITDA

$3.08B

Return on Equity

47.05%

Return on Assets

10.19%

Revenue Growth (YoY)

5.90%

Earnings Growth (YoY)

13.90%

Q:How profitable and efficient is PAYX's business model?

Paychex, Inc. achieves a profit margin of 27.35%, meaning it retains $27.35 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 38.50% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 47.05% and ROA at 10.19%, the company generates strong returns on invested capital.

Q:What are PAYX's recent growth trends?

Paychex, Inc.'s revenue grew by 5.90% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 13.90% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against Software - Application industry averages for proper context.

Dividend Information

Dividend Per Share

$4.76

Dividend Yield

4.35%

Ex-Dividend Date

Oct 26, 2026

Dividend Date

Nov 25, 2026

Q:What dividend income can investors expect from PAYX?

Paychex, Inc. offers a dividend yield of 4.35%, paying $4.76 per share annually. This high yield exceeds 4%, significantly outperforming the S&P 500 average of 1.5-2% and most investment-grade bonds. For income-focused investors, this represents an attractive cash flow opportunity, though high yields sometimes signal market concerns about sustainability. To receive the next dividend, shares must be purchased before the ex-dividend date of Oct 26, 2026.

Q:How reliable is PAYX's dividend for long-term investors?

The dividend sustainability can be assessed through the payout ratio - Paychex, Inc. pays $4.76 per share in dividends against earnings of $5.04 per share, resulting in a payout ratio of 94.44%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for Nov 25, 2026.

Company Size & Market

Market Cap

$39.9B

Revenue (TTM)

$6.60B

Revenue/Share (TTM)

$18.45

Shares Outstanding

355.98M

Book Value/Share

$10.41

Asset Type

EQUITY

Q:What is PAYX's market capitalization and position?

Paychex, Inc. has a market capitalization of $39.9B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 355.98M shares outstanding, the company's ownership is relatively concentrated. As a participant in the Software - Application industry, it competes with other firms in this sector.

Q:How does PAYX's price compare to its book value?

Paychex, Inc.'s book value per share is $10.41, while the current stock price is $112.11, resulting in a price-to-book (P/B) ratio of 10.77. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As EQUITY, this represents a specific type of security.

Analyst Ratings

Analyst Target Price

$114.57

2.20% upside potential

Analyst Recommendations

Strong Buy

Buy

Hold

Sell

Strong Sell

Q:How reliable are analyst predictions for PAYX?

18 analysts cover PAYX with 11% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $114.57 implies 2.2% upside, but targets are often adjusted to follow price moves rather than predict them.

Q:What is the Wall Street consensus on PAYX?

Current analyst recommendations:02 Buy, 12 Hold, 3 Sell, 1 Strong Sell. The bearish sentiment indicates concerns, but contrarian investors sometimes find opportunities when Wall Street is negative.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Oct 31, 2026, 02:04 AM

Technical Indicators

RSI (14-day)

54.94

Neutral

50-Day Moving Average

$113.02

-0.81% below MA-50

200-Day Moving Average

$103.42

8.40% above MA-200

MACD Line

0.96

MACD Signal

0.48

MACD Histogram

0.47

Bullish

Q:What does PAYX's RSI value tell investors?

The RSI (Relative Strength Index) for PAYX is currently 54.94, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being below the 50-day moving average, this shows mixed signals requiring careful analysis.

Q:How should traders interpret PAYX's MACD and moving average crossovers?

MACD analysis shows the MACD line at 0.96 above the signal line at 0.48, with histogram at 0.47. This bullish crossover suggests upward momentum is building. The 50-day MA ($113.02) is above the 200-day MA ($103.42), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently between the MAs, suggesting transition.

Indicators last updated: Oct 31, 2026, 12:37 AM

Condition	Threshold	Created At
Price decreases by	20%	Apr 28, 2026, 07:48 PM

Condition

Threshold

Created At

Price decreases by

20%

Apr 28, 2026, 07:48 PM

Paychex, Inc. (PAYX) Stock