PAYX FCF Yield Analysis
Updated 273h ago·SEC filings & market data
Key Takeaway
A free cash flow yield of 5.2% means the company generates about $5.20 in free cash flow for every $100 of its market value, a standard measure of the cash return an investor gets.
Sector Performance
62th percentilePAYX
5.2%
Sector Median
4.2%
Sector Avg
9.2%
Prior Period
5.4%(Aug 2026)
Deep Analysis
A free cash flow yield of 5.2% means the company generates about $5.20 in free cash flow for every $100 of its market value, a standard measure of the cash return an investor gets.
That level sits above the sector median of 4.2%, placing PAYX in the 62nd percentile among its peers, so it offers better cash generation than most. The trend is decreasing: the latest reading fell 3.7% quarter over quarter, and the year-over-year change is not available. The combination of an above-median yield with a downward slope suggests the cash return is still attractive but losing momentum, which creates moderate risk of further compression rather than an acute warning. This metric generally supports the overall NEUTRAL verdict: the yield is healthy enough to avoid a bearish call, but the declining trend prevents a bullish one.
Frequently Asked Questions
What does the FCF Yield tell investors about PAYX?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Who are PAYX's closest peers by FCF Yield?
The closest peers by FCF Yield include: JACK (23.5%), BBWI (23.7%), YELP (25.7%), MET (27.9%), WIX (29.2%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master PAYX's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full PAYX research report →PAYX
5.2%
Sector Median
4.2%
Sector Avg
9.2%
How PAYX's FCF Yield compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.