PaychexFRA:PCX +3.42%84 EBITDA Margin % is 50.75% as of Feb. 2026, which is 17% above its 10-year median of 43.49. GuruFocus rates FRA:PCX with a GF Score™ of 84/100 and a GF Value™ of €132.58 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,818 Software companies, Paychex ranks better than 95.17% on this metric.
EBITDA Margin % is calculated as EBITDA divided by its Revenue. Paychex's EBITDA for the
three
months ended in Feb. 2026 was €777 Mil. Paychex's Revenue for the
three
months ended in Feb. 2026 was €1,530 Mil. Therefore, Paychex's EBITDA margin for the quarter that ended in Feb. 2026 was 50.75%.
Paychex (FRA:PCX) EBITDA Margin % Explanation
EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
Paychex EBITDA Margin % Related Terms
Paychex EBITDA Margin % Historical Data
* Premium members only.
The historical data trend for Paychex's EBITDA Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:PCX vs WDAY, ROP, ZM: EBITDA Margin % Comparison
For the Software - Application subindustry, Paychex's EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Paychex EBITDA Margin % vs Software Industry
For the Software industry and Technology sector, Paychex's EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where Paychex's EBITDA Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Paychex (FRA:PCX) has a EBITDA Margin % of 50.75% as of Feb. 2026. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Paychex and its competitors. This is 17% above median its historical median of 43.49. Over the past decade, Paychex's EBITDA Margin % has ranged from 40.97 to 46.07. According to the industry distribution chart, Paychex ranks #136 out of 2818 companies in the Software industry, placing it in the top 4.8%.
Is Paychex's EBITDA Margin % too high?
Paychex's current EBITDA Margin % of 50.75% is 17% above median its 10-year median of 43.49. Over the past 10 years, this metric has ranged from a low of 40.97 to a high of 46.07. The Software industry median EBITDA Margin % is 8.07. Paychex's value of 50.75% is 528.9% above this industry median. Based on the distribution chart, Paychex ranks #136 out of 2818 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Paychex has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paychex's EBITDA Margin % compare to WDAY and ROP?
According to the Software industry distribution chart, Paychex ranks #136 out of 2818 companies for EBITDA Margin %. This places Paychex in the top 5% of its industry — outperforming the majority of peers. The industry median EBITDA Margin % is 8.07. Paychex's value of 50.75% is 528.9% above this benchmark. Historically, Paychex's own EBITDA Margin % has ranged from 40.97 to 46.07 over the past decade. While the company's 10-year median is 43.49 vs. the industry median of 8.07, Paychex has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBITDA Margin % for a Software company?
The median EBITDA Margin % among Software companies is 8.07, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paychex's current EBITDA Margin % of 50.75% is 528.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Paychex and its competitors. For the Software industry, the median EBITDA Margin % is 8.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paychex's current EBITDA Margin % is 50.75%, which is 17% above median its own 10-year median of 43.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paychex stock overvalued right now?
Based on GuruFocus' analysis, Paychex (FRA:PCX) is currently considered Significantly Undervalued. The stock's GF Value™ is €132.58, compared to a current price of €85.79 — trading 35.3% below its estimated fair value. The current EBITDA Margin % is 50.75%, which is 17% above median its 10-year median of 43.49 and 528.9% above the Software industry median of 8.07. Paychex's overall GF Score™ is 84/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For Paychex (FRA:PCX), the current EBITDA Margin % is 50.75% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Paychex (FRA:PCX) Overvalued in 2026?
Based on GuruFocus' analysis, Paychex stock appears to be undervalued.
The current stock price of €85.79 is trading 35.3% below its estimated GF Value™ of €132.58.
GuruFocus considers Paychex to be Significantly Undervalued.
Key valuation signals for FRA:PCX:
EBITDA Margin %: 50.75% (17% above median its 10-year median of 43.49)
GF Value™: €132.58 vs. price of €85.79 (35.3% below fair value)
Industry Position: 528.9% above the Software median (#136 of 2818)
No single metric tells the full story. See the FRA:PCX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paychex is a cloud-based human capital management provider offering payroll, compliance, talent management, benefits administration, and retirement services. The firm also provides HR outsourcing services, including professional employer organization, or PEO, offerings, enabling clients to reduce HR overhead. Paychex primarily targets small and midsize businesses, although its acquisition of Paycor in 2025 signals the firm's aspirations to expand into the midmarket segment, serving firms with more than 100 employees. As of fiscal 2025, Paychex has approximately 800,000 clients and manages payroll for one in 11 workers in the United States.
84GF Score
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