PAYXPAYCHEX INC

Services-Engineering, Accounting, Research, Management

Revenue: $6.3B; 16% YoY
Operating margin: 39.8%; 2.4% YoY
EBITDA: $3.0B; 22% YoY
Market cap: $39.9B
Employees: 17,600; $358K revenue each
Net debt / EBITDA: 1.3×; $4.0B net debt
AI in 10-K: 10.0; mentions per 10K words

Takeover score 0 of 13

Fixable underperformance 0 of 7

TSR below peersNo
0 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
145% of net income
Cash flow under 80% of net income
Dilutive SBCNo
2% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
86% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
29% of assets
Over 40% of assets
Shareholder dissentNo
92% lowest support
Any vote under 80% support

Buyer economics 0 of 4

Low revenue per employeeNo
$358K · 64th pct
Bottom quartile of its SIC industry
Quiet on AINo
10.0 per 10K words · 92nd pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
1.3× EBITDA net debt
More cash than debt, positive EBITDA
Buyout-sizedNo
$39.9B market cap
Market cap $500M–$5B

Catalysts 0 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingNo
−$4M net
Net sales over $10M in 12 months

Financials

Metric	FY2022	FY2023	FY2024	FY2025	FY2026	YoY	Trend
Revenue	$4.6B	$4.9B	$5.1B	$5.4B	$6.3B	16%
Operating income	$1.8B	$2.0B	$2.2B	$2.2B	$2.5B	14%
Net income	$1.4B	$1.6B	$2K	$1.7B	$1.8B	6.2%
Operating cash flow	$1.6B	$1.7B	$1.9B	$1.9B	$2.6B	34%
Capex	$134M	$143M	$161M	$192M	$235M	22%
Stock-based comp	$53M	$63M	$61M	$112M	$96M	14%
Buybacks	$145M	$0	$169M	$105M	$611M	485%
Dividends	$1000M	$1.2B	$1.3B	$1.4B	$1.6B	9.7%

Deal filings

None.

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $197K · 2
Open-market sells, 12 mo: $5M · 6
Net: −$4M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2026	—	—	111	92
FY2025	—	—	174	147
FY2024	—	—	129	121
FY2023	—	—	109	96
FY2022	—	—	125	93