Paychex, Inc.

Is Paychex, Inc. overvalued or undervalued?

As of November 21, 2025, Paychex, Inc. is considered overvalued due to its high P/E ratio of 33 compared to the peer average of 27.39, a high EV to EBITDA ratio of 24.93, a PEG ratio of 6.02, and poor stock performance with a year-to-date return of -21.62% versus the S&P 500's 12.26%.

As of 21 November 2025, the valuation grade for Paychex, Inc. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued, particularly when considering its P/E ratio of 33, which is significantly higher than the peer average of 27.39 for companies like Paychex, Inc. Additionally, the EV to EBITDA ratio stands at 24.93, compared to Automatic Data Processing, Inc.'s more attractive ratio of 31.13, further highlighting the premium at which Paychex is trading. The PEG ratio of 6.02 also suggests that the stock is priced high relative to its growth prospects.<BR><BR>In terms of recent performance, Paychex has underperformed against the S&P 500, with a year-to-date return of -21.62% compared to the index's positive return of 12.26%. This trend continues over one year, where Paychex's return of -23.92% starkly contrasts with the S&P 500's 11.00%. Overall, the combination of high valuation ratios and poor stock performance reinforces the conclusion that Paychex, Inc. is overvalued.

Is Paychex, Inc. technically bullish or bearish?

As of September 12, 2025, Paychex, Inc. is in a bearish trend with weak strength indicators, underperforming the S&P 500 with a year-to-date return of -6.50% compared to 12.22%.

As of 12 September 2025, the technical trend for Paychex, Inc. has changed from mildly bearish to bearish. The current stance is bearish with a weak strength indicated by the weekly MACD, which is bearish, and the daily moving averages also showing a bearish signal. The Bollinger Bands and KST on both weekly and monthly time frames are bearish, while the Dow Theory indicates a mildly bearish stance. <BR><BR>In terms of performance, Paychex has underperformed the S&P 500 across multiple periods, with a year-to-date return of -6.50% compared to the S&P 500's 12.22%, and a one-year return of -1.05% versus 17.14% for the benchmark.

How big is Paychex, Inc.?

As of Jun 18, Paychex, Inc. has a market capitalization of $54.94 billion, with net sales of $5.44 billion and a net profit of $1.74 billion for the latest four quarters. Shareholder's funds are $3.80 billion, and total assets are $10.38 billion.

As of Jun 18, Paychex, Inc. has a market capitalization of 54,936.28 million, categorizing it as a Large Cap company.<BR><BR>As of Jun 18, the company reported net sales of 5,439.50 million and a net profit of 1,740.00 million for the latest four quarters.<BR><BR>As of May 24, the shareholder's funds amounted to 3,801.00 million, while the total assets were reported at 10,383.10 million.

What does Paychex, Inc. do?

Paychex, Inc. provides integrated human capital management solutions, including payroll and HR services, primarily for small- to medium-sized businesses in the U.S. As of February 2025, it reported net sales of $1.51 billion and a market cap of approximately $54.94 billion.

Overview:<BR>Paychex, Inc. is a provider of integrated human capital management (HCM) solutions for payroll, human resource, retirement, and insurance services, primarily serving small- to medium-sized businesses in the United States, and operates in the Commercial Services & Supplies industry with a large market cap.<BR><BR>Financial Snapshot:<BR>Most recent Net Sales: 1,509 Million (Quarterly Results - Feb 2025) <BR>Most recent Net Profit: 519 Million (Quarterly Results - Feb 2025) <BR>Market cap: USD 54,936.28 Million (Large Cap)<BR><BR>Key Metrics:<BR>P/E: 33.00 <BR>Dividend Yield: 193.66% <BR>Debt Equity: -0.20 <BR>Return on Equity: 42.58% <BR>Price to Book: 13.35<BR><BR>Contact Details:<BR>Address: 911 Panorama Trl S, ROCHESTER NY: 14625-2311 <BR>Tel: ['1 585 3856666', '1 800 8284411'] <BR>Fax: 1 302 6555049 <BR>Website: http://www.paychex.com

Should I buy, sell or hold Paychex, Inc.?

Who are in the management team of Paychex, Inc.?

As of March 2022, the management team of Paychex, Inc. includes B. Thomas Golisano (Chairman), Martin Mucci (CEO), and several independent directors: Joseph Tucci, Thomas Bonadio, Joseph Doody, David Flaschen, and Pamela Joseph. The team consists of both independent and non-independent members.

As of March 2022, the management team of Paychex, Inc. includes the following individuals:<BR><BR>1. Mr. B. Thomas Golisano - Non-Independent Chairman of the Board<BR>2. Mr. Martin Mucci - President, Chief Executive Officer, Non-Independent Director<BR>3. Mr. Joseph Tucci - Lead Independent Director<BR>4. Mr. Thomas Bonadio - Independent Director<BR>5. Mr. Joseph Doody - Independent Director<BR>6. Mr. David Flaschen - Independent Director<BR>7. Ms. Pamela Joseph - Independent Director<BR><BR>As of March 2022, the company is led by a mix of independent and non-independent directors, with Mr. Martin Mucci serving as the CEO.