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Paychex PAYX Free cash flow yield

Free cash flow yield at other companies

Automatic Data Processing, Inc. logo
Automatic Data Processing, Inc.ADP
6.5%+2.8pp
Equifax logo
EquifaxEFX
5.2%+2.6pp
Global Payments logo
Global PaymentsGPN
5.7%-4.3pp
Corpay logo
CorpayCPAY
8.3%-0.8pp
PayPal Holdings, Inc. logo
PayPal Holdings, Inc.PYPL
13.2%+4.0pp
Aon plc logo
Aon plcAON
5.1%+2.0pp

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 yield?
Paychex (PAYX) reported free cash flow yield of 6.2% in Q4 2025.
How has Paychex's free cash flow yield changed year-over-year?
Paychex's free cash flow yield increased by 111.4% year-over-year, from 2.9% to 6.2%.
What is the long-term trend for Paychex's free cash flow yield?
Over 4 years (2021 to 2025), Paychex's free cash flow yield has grown at a -4.3% compound annual growth rate (CAGR), from 14.6% to 12.3%.
What does free cash flow yield mean?
The spendable cash the business throws off each year as a percentage of its market price.
How do you interpret free cash flow yield?
Higher yield can mean better value — you pay less for each dollar of cash generated. A useful sanity check against earnings-based multiples, which non-cash items can distort.
How does free cash flow yield compare across companies?
Comparable across cash-generative companies; less meaningful for firms in heavy-investment phases with temporarily negative FCF.