PaychexFRA:PCX -2.41%84 Net Margin % is 30.97% as of Feb. 2026, which is 9% above its 10-year median of 28.43. 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 2,825 Software companies, Paychex ranks better than 93.84% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Paychex's Net Income for the
three
months ended in Feb. 2026 was €474 Mil. Paychex's Revenue for the
three
months ended in Feb. 2026 was €1,530 Mil. Therefore, Paychex's net margin for the quarter that ended in Feb. 2026 was 30.97%.
The historical rank and industry rank for Paychex's Net Margin % or its related term are showing as below:
FRA:PCX'
s Net Margin % Range Over the Past 10 Years
Min: 25.64 Med: 28.43 Max: 32.03
Current: 25.84
FRA:PCX's Net Margin % is ranked better than 93.84% of 2825
companies
in the Software industry
Industry Median: 2.54
vs FRA:PCX: 25.84
Paychex (FRA:PCX) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Paychex Net Margin % Related Terms
Paychex Net Margin % Historical Data
* Premium members only.
The historical data trend for Paychex's Net 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.
For the Software - Application subindustry, Paychex's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Software Industry
For the Software industry and Technology sector, Paychex's Net Margin % distribution charts can be found below:
* The bar in red indicates where Paychex's Net 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 Net Margin % of 30.97% as of Feb. 2026. Net margin is the ratio of total net income to net sales. View historical data on Paychex and its competitors. This is near median its historical median of 28.43. Over the past decade, Paychex's Net Margin % has ranged from 25.64 to 32.03. According to the industry distribution chart, Paychex ranks #174 out of 2825 companies in the Software industry, placing it in the top 6.2%.
Is Paychex's Net Margin % too high?
Paychex's current Net Margin % of 30.97% is near median its 10-year median of 28.43. Over the past 10 years, this metric has ranged from a low of 25.64 to a high of 32.03. The Software industry median Net Margin % is 2.54. Paychex's value of 30.97% is 1119.3% above this industry median. Based on the distribution chart, Paychex ranks #174 out of 2825 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 Net Margin % compare to WDAY and ROP?
According to the Software industry distribution chart, Paychex ranks #174 out of 2825 companies for Net Margin %. This places Paychex in the top 6% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.54. Paychex's value of 30.97% is 1119.3% above this benchmark. Historically, Paychex's own Net Margin % has ranged from 25.64 to 32.03 over the past decade. While the company's 10-year median is 28.43 vs. the industry median of 2.54, 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 Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.54, based on 2,825 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paychex's current Net Margin % of 30.97% is 1119.3% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Paychex and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paychex's current Net Margin % is 30.97%, which is near median its own 10-year median of 28.43. 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 €82.95 — trading 37.4% below its estimated fair value. The current Net Margin % is 30.97%, which is near median its 10-year median of 28.43 and 1119.3% above the Software industry median of 2.54. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Paychex (FRA:PCX), the current Net Margin % is 30.97% 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 €82.95 is trading 37.4% below its estimated GF Value™ of €132.58.
GuruFocus considers Paychex to be Significantly Undervalued.
Key valuation signals for FRA:PCX:
Net Margin %: 30.97% (near median its 10-year median of 28.43)
GF Value™: €132.58 vs. price of €82.95 (37.4% below fair value)
Industry Position: 1119.3% above the Software median (#174 of 2825)
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
Get the complete analysis for FRA:PCX
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:PCX has been successfully added to your 
