PaychexFRA:PCX +1.78%85 10-Year ROIIC % is 13.20 as of May. 2026. GuruFocus rates FRA:PCX with a GF Score™ of 85/100 and a GF Value™ of €135.82 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,121 Software companies, Paychex ranks better than 66.86% on this metric.
10-Year Return on Invested Incremental Capital (10-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 10-year.
Paychex's 10-Year ROIIC % for the quarter that ended in May. 2026 was 13.20%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Paychex's 10-Year ROIIC % or its related term are showing as below:
FRA:PCX's 10-Year ROIIC % is ranked better than 66.86% of 2121
companies
in the Software industry
Industry Median: 4.2
vs FRA:PCX: 13.20
Paychex (FRA:PCX) 10-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Paychex 10-Year ROIIC % Related Terms
Paychex 10-Year ROIIC % Historical Data
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The historical data trend for Paychex's 10-Year ROIIC % 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: 10-Year ROIIC % Comparison
For the Software - Application subindustry, Paychex's 10-Year ROIIC %, along with its competitors' market caps and 10-Year ROIIC % 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 10-Year ROIIC % vs Software Industry
For the Software industry and Technology sector, Paychex's 10-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Paychex's 10-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 10-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Paychex (FRA:PCX) has a 10-Year ROIIC % of 13.20 as of May. 2026. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on Paychex and its competitors. According to the industry distribution chart, Paychex ranks #703 out of 2121 companies in the Software industry, placing it in the top 33.1%.
Is Paychex's 10-Year ROIIC % too high?
Paychex's current 10-Year ROIIC % is 13.20. The Software industry median 10-Year ROIIC % is 4.20. Paychex's value of 13.20 is 214.3% above this industry median. Based on the distribution chart, Paychex ranks #703 out of 2121 companies in the Software industry, which is above the industry midpoint. Overall, Paychex has a GF Score™ of 85/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paychex's 10-Year ROIIC % compare to ROP and WDAY?
According to the Software industry distribution chart, Paychex ranks #703 out of 2121 companies for 10-Year ROIIC %. This puts Paychex in the upper half of its industry. The industry median 10-Year ROIIC % is 4.20. Paychex's value of 13.20 is 214.3% 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 10-Year ROIIC % for a Software company?
The median 10-Year ROIIC % among Software companies is 4.20, based on 2,121 companies in the industry. Companies in the top quartile (top 25%) have a 10-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 10-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Paychex's current 10-Year ROIIC % of 13.20 is 214.3% 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 10-Year ROIIC % mean?
A high 10-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 10-Year ROIIC % measures the change in earnings as a percentage of change in investment over 10-year. View historical data on Paychex and its competitors. For the Software industry, the median 10-Year ROIIC % is 4.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paychex's current 10-Year ROIIC % is 13.20. 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 €135.82, compared to a current price of €93.25 — trading 31.3% below its estimated fair value. The current 10-Year ROIIC % is 13.20 and 214.3% above the Software industry median of 4.20. 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 10-Year ROIIC % calculated?
10-Year ROIIC % is calculated from a company's financial statements. For Paychex (FRA:PCX), the current 10-Year ROIIC % is 13.20 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 €93.25 is trading 31.3% below its estimated GF Value™ of €135.82.
GuruFocus considers Paychex to be Significantly Undervalued.
Key valuation signals for FRA:PCX:
10-Year ROIIC %: 13.20
GF Value™: €135.82 vs. price of €93.25 (31.3% below fair value)
Industry Position: 214.3% above the Software median (#703 of 2121)
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
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