PAYXPaychex
$117.02+3.1% 1Y
$117.02
$84.4852 weeks$127.36
The business
How PAYX's business earns
Paychex earns 28% on the capital it employs against an estimated 9.0% cost of capital.
28%
Return on invested capital · cost of capital 9.0% · 19 points above the estimated cost of capital
- Operating margin
- 39%
Operating margin · Software - Application median 7.5% · 12 months to Aug 31, 2026
- Cash conversion
- 1.15×
Cash conversion · 1.23× a year ago · operating cash flow divided by operating profit after tax
- Share count, year on year
- −1.5%
Share count, year on year · fewer shares than a year ago
Operating margin by fiscal year
| Year | Operating margin |
|---|---|
| FY2021 | 36% |
| FY2022 | 40% |
| FY2023 | 41% |
| FY2024 | 41% |
| FY2025 | 40% |
| FY2026 | 39% |
Details›
- Gross margin12 months to Aug 31, 2026
- 74%
- Operating margin12 months to Aug 31, 2026
- 39%
- Net margin12 months to Aug 31, 2026
- 27%
- Free cash flow margin
- 31%
- Revenue, trailing twelve months
- $6.60B
- Free cash flow, trailing twelve months
- $2.02B
- Net income, trailing twelve months
- $1.81B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 28%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Application
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