Is PAYCHEX INC (PAYX) Halal?
Shariah Screening — 5 Standards
Based on financial data from May 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 13.9% / 30% | 4.6% / 30% | 5.5% / 30% | 1.31% / 5% | ✓ HALAL |
| DJIM | 13.9% / 33% | 4.6% / 33% | 5.5% / 33% | 1.31% / 5% | ✓ HALAL |
| MSCI | 30.3% / 33% | 10.0% / 33% | 11.9% / 33% | 1.31% / 5% | ✓ HALAL |
| S&P | 13.9% / 33% | 4.6% / 33% | 5.5% / 33% | 1.31% / 5% | ✓ HALAL |
| FTSE | 30.3% / 33% | 10.0% / 33% | 11.9% / 50% | 1.31% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 73.9% | |
| Operating Margin | 44.4% | |
| Net Margin | 25.8% | |
| Return on Equity (ROE) | 40.3% | |
| Return on Assets (ROA) | 10.8% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $1.9B |
| Free Cash Flow | $1.7B |
| Total Debt | $5.0B |
| Debt-to-Equity | 124.9 |
| Current Ratio | 1.3 |
| Total Assets | $16.6B |
Price & Trading
| Last Close | $93.59 |
| 50-Day MA | $96.97 |
| 200-Day MA | $120.79 |
| Avg Volume | 3.8M |
| Beta | 0.9 |
|
52-Week Range
$86.89
| |
About PAYCHEX INC (PAYX)
Paychex, Inc., together with its subsidiaries, provides human capital management solutions (HCM) for payroll, employee benefits, human resources (HR), and insurance services for small to medium-sized businesses in the United States, Europe, and India. It offers payroll processing services; payroll tax administration services; employee payment services; and regulatory compliance services. The company provides retirement solutions, such as plan implementation, ongoing compliance with government regulations, employee and employer reporting, participant and employer online access, electronic funds transfer, and other administrative services; HCM solutions from recruiting and hiring to retirement; and talent management and talent acquisition services. In addition, it offers payroll solutions, including calculation, preparation, and delivery of employee payroll checks; production of internal accounting records and management reports; preparation of federal, state, and local payroll tax returns; and collection and remittance of clients' payroll obligations. Further, the company provides workforce management solutions; benefits administration solutions; digital marketplace for earned wages, financial wellness solutions, and voluntary lifestyle benefits; HR support to non-payroll clients through HR Partner Plus solution; and insurance services for property and casualty coverage, such as workers' compensation, business-owner policies, cyber security protection, and commercial auto, as well as health and benefits coverage, including health, dental, vision, and life. Additionally, it offers payroll, employer compliance, HR and employee benefits administration, risk management outsourcing, and both virtual and on-site availability of a professionally trained HR representative, and other solutions to businesses. It markets and sells its services primarily through its direct sales force. The company was founded in 1971 and is headquartered in Rochester, New York.
Purification Calculator
As a halal stock with 1.31% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is PAYCHEX INC (PAYX) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), PAYCHEX INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is PAYCHEX INC's debt ratio?
PAYCHEX INC's debt ratio is 13.9% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 30.3%.
Does PAYCHEX INC require dividend purification?
Yes, PAYCHEX INC has an impermissible income ratio of 1.31%, which means 1.31% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are PAYCHEX INC's key financial metrics?
PAYCHEX INC has a market capitalization of $32.8B, trailing P/E ratio of 20.2, and revenue of $5.6B. The company maintains a gross margin of 73.9% and a net margin of 25.8%. Return on equity stands at 40.3%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.