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PaychexFRA:PCX +2.09%85 Return-on-Tangible-Asset is 15.97% as of May. 2026, which is 8% below its 10-year median of 17.27. GuruFocus rates FRA:PCX with a GF Score™ of 85/100 and a GF Value™ of €134.61 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,886 Software companies, Paychex ranks better than 89.02% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Paychex's annualizedNet Income for the quarter that ended in May. 2026 was €1,440 Mil. Paychex's average total tangible assets for the quarter that ended in May. 2026 was €9,017 Mil. Therefore, Paychex's annualized Return-on-Tangible-Asset for the quarter that ended in May. 2026 was 15.97%.
The historical rank and industry rank for Paychex's Return-on-Tangible-Asset or its related term are showing as below:
FRA:PCX'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 13.97 Med: 17.27 Max: 20.09
Current: 17.01
During the past 13 years, Paychex's highest Return-on-Tangible-Asset was 20.09%. The lowest was 13.97%. And the median was 17.27%.
FRA:PCX's Return-on-Tangible-Asset is ranked better than 89.02% of 2886
companies
in the Software industry
Industry Median: 2.04
vs FRA:PCX: 17.01
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Paychex Return-on-Tangible-Asset Related Terms
Paychex Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Paychex's Return-on-Tangible-Asset 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 ROP, WDAY, ADSK: Return-on-Tangible-Asset Comparison
For the Software - Application subindustry, Paychex's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Software Industry
For the Software industry and Technology sector, Paychex's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Paychex's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (May. 2026) net income data.
What does a Return-on-Tangible-Asset of 15.97% mean?
Paychex (FRA:PCX) has a Return-on-Tangible-Asset of 15.97% as of May. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Paychex and its competitors. This is near median its historical median of 17.27. Over the past decade, Paychex's Return-on-Tangible-Asset has ranged from 13.97 to 20.09. According to the industry distribution chart, Paychex ranks #317 out of 2886 companies in the Software industry, placing it in the top 11%.
Is Paychex's Return-on-Tangible-Asset too high?
Paychex's current Return-on-Tangible-Asset of 15.97% is near median its 10-year median of 17.27. Over the past 10 years, this metric has ranged from a low of 13.97 to a high of 20.09. The Software industry median Return-on-Tangible-Asset is 2.04. Paychex's value of 15.97% is 682.8% above this industry median. Based on the distribution chart, Paychex ranks #317 out of 2886 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Paychex has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paychex's Return-on-Tangible-Asset compare to ROP and WDAY?
According to the Software industry distribution chart, Paychex ranks #317 out of 2886 companies for Return-on-Tangible-Asset. This places Paychex in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.04. Paychex's value of 15.97% is 682.8% above this benchmark. Historically, Paychex's own Return-on-Tangible-Asset has ranged from 13.97 to 20.09 over the past decade. While the company's 10-year median is 17.27 vs. the industry median of 2.04, 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 Return-on-Tangible-Asset for a Software company?
The median Return-on-Tangible-Asset among Software companies is 2.04, based on 2,886 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paychex's current Return-on-Tangible-Asset of 15.97% is 682.8% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Paychex and its competitors. For the Software industry, the median Return-on-Tangible-Asset is 2.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paychex's current Return-on-Tangible-Asset is 15.97%, which is near median its own 10-year median of 17.27. 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 Modestly Undervalued. The stock's GF Value™ is €134.61, compared to a current price of €95.20 — trading 29.3% below its estimated fair value. The current Return-on-Tangible-Asset is 15.97%, which is near median its 10-year median of 17.27 and 682.8% above the Software industry median of 2.04. Paychex's overall GF Score™ is 85/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Paychex (FRA:PCX), the current Return-on-Tangible-Asset is 15.97% 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 €95.20 is trading 29.3% below its estimated GF Value™ of €134.61.
GuruFocus considers Paychex to be Modestly Undervalued.
Key valuation signals for FRA:PCX:
Return-on-Tangible-Asset: 15.97% (near median its 10-year median of 17.27)
GF Value™: €134.61 vs. price of €95.20 (29.3% below fair value)
Industry Position: 682.8% above the Software median (#317 of 2886)
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.
85GF Score
Get the complete analysis for FRA:PCX
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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