Paychex, Inc. cash flow to debt ratio of 55.48% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Paychex, Inc.'s free cash flow has increased 31.97% from $1.76B last year to $2.32B, signaling increasing performance

Paychex, Inc.'s debt to equity ratio is 1.23, which means that the company's assets are unhealthy financed, signaling financial risk.

Paychex, Inc.'s debt has increased relative to shareholder equity from 1.22 last year to 1.23 today, signaling weakened financials

Paychex, Inc. has a net debt to EBITDA ratio of 1.14x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Paychex, Inc.'s interest coverage ratio of 9.32 indicates that earnings with good margin can cover interest payments on company debt

Paychex, Inc.'s profit margin has decreased (9.13%) in the last year from 29.74% to 27.03%, signaling decreasing performance

Paychex, Inc.'s short-term assets of $8.61B exceed its short-term liabilities of $6.84B

Paychex, Inc.'s return on assets of 10.88% is higher than the 5.00% threshold, indicating efficient asset utilization

Paychex, Inc.'s return on equity of 45.13%, is higher than 15.00%, indicating good performance

Paychex, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Paychex, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Paychex, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Paychex, Inc. has a free cash flow yield of 5.39%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Paychex, Inc.'s yearly earnings has increased 6.20% since last year from $1.66B to $1.76B, signaling increasing performance

Paychex, Inc.'s yearly revenue has increased 16.88% since last year from $5.57B to $6.51B, signaling increasing performance

ROIC 20.49% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Paychex, Inc.'s 3-year revenue CAGR of 9.15% is positive, indicating growing revenue over the past 3 years

Paychex, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Paychex, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Paychex, Inc. is overvalued relative to its fair value price of 64.59 based on Discounted Cash Flow model

Paychex, Inc. has an earnings yield of 4.06%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Paychex, Inc. is overvalued relative to its fair value price of 39.20 based on EBITDA multiple model

Paychex, Inc. has an EV/EBITDA ratio of 15.43x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Paychex, Inc. is undervalued relative to its fair value price of 135.29 based on Earnings Fair Value model

Paychex, Inc. has a PEG-ratio over 1 which is considered overvalued

Paychex, Inc. has a price-to-book ratio of 11.60x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Paychex, Inc. has a price-to-sales ratio of 6.65x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue