Paychex, Inc. (PAYX) Stock Analysis
Last updated Sep 8, 2026
Health Check
Last analyzed Sep 7, 2026
- Financial Health 65
- Profitability 75
- Business Quality 75
- Balance Sheet 55
- Cash Flow 70
Why this rating?
Health 71/100 — High Quality
Entry timing is weak right now. Quality may be fine; the setup is not.
Company overview
Paychex, Inc. (PAYX) is a Software - Application company in the Technology sector. Compound Radar rates Paychex, Inc. 71/100 (High Quality) due to high business quality, steady revenue growth, and manageable leverage.
Investment profile
- Quality High
- Growth Moderate
- Balance Sheet Adequate
- Valuation Fair
Financial highlights
Valuation
- P/E 23.91
- Forward P/E 18.3
- PEG 2.14
- EV/Revenue 11.79
Profitability
- Revenue Growth 12.5%
- Gross Margin 67.2%
- Operating Margin 38.3%
- Net Margin 26.6%
Financial strength
- Cash $1.14B
- Debt $4.63B
- Net Cash $-3.49B
- Free Cash Flow $2.32B
- Current Ratio 1.15
Similar companies
Peers in Software - Application, ranked by Financial Health.
Latest quoted price for the name. Helps anchor the setup in today’s market level.
Health Entry- Adobe Inc. Software - Application ADBE$257.26 85 Health 85 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Cadence Design Systems, Inc. Software - Application CDNS$284.11 82 Health 82 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Good Entry Good EntryA usable setup — not as clean as Strong Entry, but timing is not mixed or weak.
- Shopify Inc. Software - Application SHOP$134.10 81 Health 81 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Watch WatchWorth tracking, but timing is mixed — not a clear setup yet.
- Clear Secure, Inc. Software - Application YOU$43.60 81 Health 81 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Good Entry Good EntryA usable setup — not as clean as Strong Entry, but timing is not mixed or weak.
- Grindr Inc. Software - Application GRND$15.46 81 Health 81 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Watch WatchWorth tracking, but timing is mixed — not a clear setup yet.
- Autodesk, Inc. Software - Application ADSK$212.21 80 Health 80 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Chime Financial, Inc. Software - Application CHYM$32.31 80 Health 80 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
- Duolingo, Inc. Software - Application DUOL$146.39 78 Health 78 / 100
Strong business quality across profitability, growth, balance sheet, and cash flow.
Wait WaitEntry timing is weak right now. Quality may be fine; the setup is not.
FAQ
How Compound Radar scores and tracks Paychex, Inc. (PAYX).