Paychex Inc. (PAYX) intrinsic value & 10-year financials
Paychex Inc. (PAYX) has a Graham intrinsic value of $103.36 per share. At $111.63 on Oct 17, 2026, the stock trades 8% above that value. Over the last 10 fiscal years revenue grew 8.2% a year to $6.3B, with an average return on invested capital of 42.4%.
- Graham intrinsic value
- $103.36
- Share price (Oct 17, 2026)
- $111.63
- Price vs Graham value
- 8% above
- Market cap
- $40.2B
- Revenue (FY2026)
- $6.3B
- Revenue growth (10-yr CAGR)
- 8.2%
- ROIC (10-yr avg)
- 42.4%
- Free cash flow (FY2026)
- $2.3B
PAYX 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2026 | $6.3B | $1.8B | $4.89 | $2.3B | 39.8% | 25.9% |
| FY2025 | $5.4B | $1.7B | $4.58 | $1.7B | 40.8% | 31.5% |
| FY2024 | $5.1B | $1.7B | $4.67 | $1.7B | 42.4% | 52.5% |
| FY2023 | $4.9B | $1.6B | $4.30 | $1.6B | 41.4% | 45.9% |
| FY2022 | $4.6B | $1.4B | $3.84 | $1.4B | 40.4% | 43.6% |
| FY2021 | $4.0B | $1.1B | $3.03 | $1.1B | 36.5% | 39.7% |
| FY2020 | $4.0B | $1.1B | $3.04 | $1.3B | 36.9% | 40.4% |
| FY2019 | $3.7B | $1.0B | $2.86 | $1.1B | 37.1% | 46.9% |
| FY2018 | $3.3B | $933.7M | $2.58 | $1.1B | 38.8% | 55.7% |
| FY2017 | $3.1B | $817.3M | $2.25 | $866.1M | 40.0% | 41.6% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
Paychex is a consistent compounder, expanding top-line revenue at 8.2% annually over the past decade.
Paychex has earned high returns on invested capital, averaging 42.4% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.
Paychex has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, Paychex is modeled at 8.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $103.36 per share.