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Paychex PAYX Free cash flow margin

Free cash flow margin at other companies

Automatic Data Processing, Inc. logo
Automatic Data Processing, Inc.ADP
24.5%+1.7pp
Equifax logo
EquifaxEFX
18.1%+4.0pp
Global Payments logo
Global PaymentsGPN
12%-19.4pp
Corpay logo
CorpayCPAY
46.2%+0.8pp
PayPal Holdings, Inc. logo
PayPal Holdings, Inc.PYPL
16.3%-2.4pp
Aon plc logo
Aon plcAON
20%+3.9pp

Other financials

Income statement

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Revenue$1.8B+19.9%
Gross profit$1.4B+22.8%
Operating income$792.0M+14.5%
Net income$560.3M+7.9%
EPS (diluted)$1.56+9.1%

Balance sheet

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Cash & equivalents$1.7B+11.4%
Total debt$4.6B+434%
Total equity$4.0B-2.5%
Total assets$17.5B+56.1%

Cash flow

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Operating cash flow$812.5M+13.5%
CapEx$51.0M+4.7%
Free cash flow$761.5M+14.1%

Valuation

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Market cap$34.96B-38.4%
Enterprise value$37.83B-32.3%
P/E21.4×-11.3×
P/S5.5×-4.9×

Profitability

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Gross margin73.9%+1.9pp
Operating margin36.9%-4.6pp
Net margin25.8%-6.1pp

Returns & leverage

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Return on equity40.3%-4.0pp
Debt / equity1.1×+0.9×
Current ratio1.3×-0.1×

Where this comes from

Calculated from Paychex’s reported figures.

Based on trailing twelve months.

The official record: Paychex’s 10-Q, filed March 26, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Paychex's free cash flow margin?
Paychex (PAYX) reported free cash flow margin of 33% in Q4 2025.
How has Paychex's free cash flow margin changed year-over-year?
Paychex's free cash flow margin increased by 11.8% year-over-year, from 29.5% to 33%.
What is the long-term trend for Paychex's free cash flow margin?
Over 4 years (2021 to 2025), Paychex's free cash flow margin has grown at a 0.3% compound annual growth rate (CAGR), from 118% to 119.4%.
What does free cash flow margin mean?
How much real, spendable cash each sales dollar generates after reinvestment.
How do you interpret free cash flow margin?
A high and rising FCF margin is the hallmark of a cash-generative business. Persistent gaps between net margin and FCF margin warrant a look at working capital or capital intensity.
How does free cash flow margin compare across companies?
Strong cross-company quality signal; capital-light compounders post structurally higher FCF margins than asset-heavy peers.