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PAYX

9/9 Score

Paychex, Inc.

Analysis Date: February 1, 2026

Buffettology Criteria

All 9 of 9 criteria passed

  • High ROE

    Return on Equity > 12%

    Value: 39.7%

  • High ROIC

    Return on Invested Capital > 9%

    Value: 17.2%

  • Cash Machine

    FCF / Assets > 5%

  • Fair Valuation

    Earnings Yield > 3.5%

    Value: 4.3%

  • Share Buybacks

    Share Count is Dropping

    Value: -0.0%

  • Defensible Moat

    Gross Profit Margin > 40%

    Value: 73.4%

  • Simple Business

    Not in a speculative sector (e.g., Biotech)

    Value: Industrials

  • Conservative Debt

    Debt to Equity < 1.5

    Value: 1.30x

  • Consistent Growth

    5-Year Growth is Positive

    Value: 50.2%

Analysis Summary

Paychex appears to be a solid business. It's operating with excellent returns on capital, an impressive moat to keep competitors at bay, and its debt levels are well-managed. This looks like a company worth chewing on for the long haul.

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