PaychexFRA:PCX -1.61%82 Interest Coverage is 9.35 as of May. 2026, which is 82% below its 10-year median of 52.84. GuruFocus rates FRA:PCX with a GF Score™ of 82/100 and a GF Value™ of €136.39 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,707 Software companies, Paychex ranks worse than 67.14% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Paychex's
Operating Income
for the
three
months ended in May. 2026 was €518 Mil. Paychex's Interest Expense for the
three
months ended in May. 2026 was €-55 Mil.
Paychex's interest coverage for the quarter that ended in May. 2026 was 9.35.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Paychex's Interest Coverage or its related term are showing as below:
FRA:PCX'
s Interest Coverage Range Over the Past 10 Years
Min: 9.32 Med: 52.84 Max: 501.56
Current: 9.32
FRA:PCX's Interest Coverage is ranked worse than 67.14% of 1707
companies
in the Software industry
Industry Median: 24.65
vs FRA:PCX: 9.32
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Paychex Interest Coverage Related Terms
Paychex Interest Coverage Historical Data
* Premium members only.
The historical data trend for Paychex's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:PCX vs WDAY, ROP, ZM: Interest Coverage Comparison
For the Software - Application subindustry, Paychex's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Software Industry
For the Software industry and Technology sector, Paychex's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Paychex's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 Interest Coverage of 9.35 as of May. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Paychex and its competitors. This is 82% below median its historical median of 52.84. Over the past decade, Paychex's Interest Coverage has ranged from 9.32 to 501.56. According to the industry distribution chart, Paychex ranks #1146 out of 1707 companies in the Software industry, placing it in the top 67.1%.
Is Paychex's Interest Coverage too high?
Paychex's current Interest Coverage of 9.35 is 82% below median its 10-year median of 52.84. Over the past 10 years, this metric has ranged from a low of 9.32 to a high of 501.56. The Software industry median Interest Coverage is 24.65. Paychex's value of 9.35 is 62.1% below this industry median. Based on the distribution chart, Paychex ranks #1146 out of 1707 companies in the Software industry, which is below the industry midpoint. Overall, Paychex has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paychex's Interest Coverage compare to WDAY and ROP?
According to the Software industry distribution chart, Paychex ranks #1146 out of 1707 companies for Interest Coverage. This places Paychex in the lower half of its industry. The industry median Interest Coverage is 24.65. Paychex's value of 9.35 is 62.1% below this benchmark. Historically, Paychex's own Interest Coverage has ranged from 9.32 to 501.56 over the past decade. While the company's 10-year median is 52.84 vs. the industry median of 24.65, Paychex has consistently been below 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 Interest Coverage for a Software company?
The median Interest Coverage among Software companies is 24.65, based on 1,707 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paychex's current Interest Coverage of 9.35 is 62.1% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Paychex and its competitors. For the Software industry, the median Interest Coverage is 24.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paychex's current Interest Coverage is 9.35, which is 82% below median its own 10-year median of 52.84. 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 €136.39, compared to a current price of €84.41 — trading 38.1% below its estimated fair value. The current Interest Coverage is 9.35, which is 82% below median its 10-year median of 52.84 and 62.1% below the Software industry median of 24.65. Paychex's overall GF Score™ is 82/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Paychex (FRA:PCX), the current Interest Coverage is 9.35 as of May. 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 €84.41 is trading 38.1% below its estimated GF Value™ of €136.39.
GuruFocus considers Paychex to be Significantly Undervalued.
Key valuation signals for FRA:PCX:
Interest Coverage: 9.35 (82% below median its 10-year median of 52.84)
GF Value™: €136.39 vs. price of €84.41 (38.1% below fair value)
Industry Position: 62.1% below the Software median (#1146 of 1707)
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.
82GF Score
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