Paychex (FRA:PCX) ROCE %: 33.42% (As of Feb. 2026)

What is Paychex ROCE %?

Paychex FRA:PCX -2.41% 84 ROCE % is 33.42% as of Feb. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Paychex's annualized ROCE % for the quarter that ended in Feb. 2026 was 33.42%.

Paychex (FRA:PCX) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Paychex ROCE % Related Terms

Paychex ROCE % Historical Data

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The historical data trend for Paychex's ROCE % 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.

Paychex ROCE % Chart

Paychex Annual Data

Trend

May16

May17

May18

May19

May20

May21

May22

May23

May24

May25

ROCE %

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33.09

45.97

45.17

46.08

30.62

Paychex Quarterly Data
	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24	Nov24	Feb25	May25	Aug25	Nov25	Feb26
ROCE %	Get a 7-Day Free Trial															53.72	23.42	23.26	24.86	33.42

84GF Score

Paychex Inc FRA:PCX

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Paychex ROCE % Calculation

Paychex's annualized ROCE % for the fiscal year that ended in May. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: May. 2025 )		(A: May. 2024 )		(A: May. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: May. 2025 )		(A: May. 2024 )		(A: May. 2025 )
	=	2023.513	/	( ( (9604.367 - 4910.917)	+	(14692.357 - 6170.238) )	/ 2 )
	=	2023.513	/	( (4693.45	+	8522.119)	/ 2 )
	=	2023.513	/	6607.7845
	=	30.62 %

Paychex's ROCE % of for the quarter that ended in Feb. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Feb. 2026 )		(Q: Nov. 2025 )		(Q: Feb. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2026 )		(Q: Nov. 2025 )		(Q: Feb. 2026 )
	=	2731.228	/	( ( (14288.848 - 6090.551)	+	(14814.644 - 6665.719) )	/ 2 )
	=	2731.228	/	( ( 8198.297	+	8148.925 )	/ 2 )
	=	2731.228	/	8173.611
	=	33.42 %

(1) Note: The EBIT data used here is four times the quarterly (Feb. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 33.42% mean?

Paychex (FRA:PCX) has a ROCE % of 33.42% as of Feb. 2026.

Is Paychex's ROCE % too high?

Paychex's current ROCE % is 33.42%. The Software industry median ROCE % is 5.28. Paychex's value of 33.42% is 533% above this industry median. 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 ROCE % compare to WDAY and ROP?

Paychex's ROCE % of 33.42% can be compared against companies in the Software industry. The industry median ROCE % is 5.28. Paychex's value of 33.42% is 533% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Software company?

The median ROCE % among Software companies is 5.28, based on 2,711 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paychex's current ROCE % of 33.42% is 533% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median ROCE % is 5.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paychex's current ROCE % is 33.42%. 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 ROCE % is 33.42% and 533% above the Software industry median of 5.28. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Paychex (FRA:PCX), the current ROCE % is 33.42% 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:

ROCE %: 33.42%
GF Value™: €132.58 vs. price of €82.95 (37.4% below fair value)
GF Score™: 84/100 with 4 warning signs
Industry Position: 533% above the Software median

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 Business Description

Industry Technology Software

Comparable Companies WDAY ROP ZM FICO TEAM ADSK SSNC PTC GRAB MSTR XTER:SAP CRM SHOP UBER NOW ADBE CDNS INTU ADP SNOW

Other Exchanges PAYX:USA PAYX:Mexico 1PAYX:Italy 0KGE:UK PCX:Germany PAYX:Austria

Address 911 Panorama Trail South, Rochester, NY, USA, 14625-2396

Website https://www.paychex.com

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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€82.95

Price

€132.58

GF Value

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