PAYC Stock Analysis: Paycom Software | NYSE
Software - Application | NYSE, USA | Market Cap: 10.189m USD | 12M Return: 3% | US70432V1026 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 160M
EPS Trend: 96.1%
Qual. Beats: 2
Rev. Trend: 99.8%
Qual. Beats: 2
Warnings
No concerns identified
Tailwinds
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Paycom Software, Inc. (PAYC) is a cloud-based human capital management (HCM) provider that delivers its software as a service (SaaS) to small and mid-sized businesses across the United States. The company is headquartered in Oklahoma City, Oklahoma, and was founded in 1998, with a public listing on the NYSE dating to 2014. Paycom falls within the Application Software sub-industry of the Information Technology sector, competing in the broader HCM and payroll software market alongside peers such as Paychex, ADP, and Workday.
Its platform automates the full employment life cycle, from recruitment to retirement, spanning payroll and tax management, talent acquisition, time and labor management, benefits administration, performance management, and compliance. Differentiating features include single-database architecture, manager and employee self-service tools, mobile access, and specialized modules such as Clue for vaccination and testing tracking, MyCom for internal communications, and Paycom Pay for earned-wage access. Revenue is generated primarily through recurring subscription fees, a model common to SaaS application providers that supports predictable cash flows tied to client retention and per-employee pricing.
- Recurring revenue growth slows amid rising HCM competition
- Operating margin compresses on elevated sales spending
- Investment portfolio returns sensitive to Fed rate cuts
| Net Income: 487.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.15 > 0.02 and ΔFCF/TA 5.59 > 1.0 |
| NWC/Revenue: 11.20% < 20% (prev 28.24%; Δ -17.04% < -1%) |
| CFO/TA 0.19 > 3% & CFO 1.01b > Net Income 487.6m |
| Net Debt (867.6m) to EBITDA (898.3m): 0.97 < 3 |
| Current Ratio: 1.07 > 1.5 & < 3 |
| Outstanding Shares: last quarter (45.9m) vs 12m ago -18.47% < -2% |
| Gross Margin: 80.11% > 18% (prev 82.44%; Δ -2.32% > 0.5%) |
| Asset Turnover: 46.37% > 50% (prev 48.62%; Δ -2.25% > 0%) |
| Interest Coverage Ratio: 42.85 > 6 (EBIT TTM 702.8m / Interest Expense TTM 16.4m) |
| A: 0.05 (Total Current Assets 3.48b - Total Current Liabilities 3.24b) / Total Assets 5.20b |
| B: 0.48 (Retained Earnings 2.48b / Total Assets 5.20b) |
| C: 0.15 (EBIT TTM 702.8m / Avg Total Assets 4.62b) |
| D: 0.12 (Book Value of Equity 571.5m / Total Liabilities 4.63b) |
| Altman-Z'' = 3.01 = A |
| DSRI: 1.13 (Receivables 56.9m/46.2m, Revenue 2.14b/1.96b) |
| GMI: 1.03 (GM 82.44% / 80.11%) |
| AQI: 0.81 (AQ_t 0.19 / AQ_t-1 0.24) |
| SGI: 1.09 (Revenue 2.14b / 1.96b) |
| TATA: -0.10 (NI 487.6m - CFO 1.01b) / TA 5.20b) |
| Beneish M = -2.95 (Cap -4..+1) = A |
As of September 23, 2026, the stock is trading at USD 224.61 with a total of 726,595 shares traded. Over the past week, the price has changed by -0.95%, over one month by -2.18%, over three months by +81.92% and over the past year by +3.02%.
Current recommended Stop Loss: 215.30 (which is 4.1% or 1.2 ATR below the current price).
Paycom Software has received a consensus analysts rating of 3.60. Therefore, it is recommended to hold PAYC.
- StrongBuy: 6
- Buy: 0
- Hold: 14
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 218.3 | -2.8% |
P/E Trailing = 24.1002
P/E Forward = 17.1527
P/S = 4.7596
P/B = 17.949
P/EG = 1.204
Revenue TTM = 2.14b USD
EBIT TTM = 702.8m USD
EBITDA TTM = 898.3m USD
Long Term Debt = 900.0m USD (from longTermDebt, last quarter)
Short Term Debt = 28.8m USD (from shortTermDebt, last quarter)
Debt = 1.07b USD (from shortLongTermDebtTotal, last quarter) + Leases 82.8m
Net Debt = 867.6m USD (calculated: Debt 1.07b - CCE 198.0m)
Enterprise Value = 11.1b USD (10.2b + Debt 1.07b - CCE 198.0m)
Interest Coverage Ratio = 42.85 (Ebit TTM 702.8m / Interest Expense TTM 16.4m)
EV/FCF = 14.65x (Enterprise Value 11.1b / FCF TTM 754.5m)
FCF Yield = 6.82% (FCF TTM 754.5m / Enterprise Value 11.1b)
FCF Margin = 35.25% (FCF TTM 754.5m / Revenue TTM 2.14b)
Net Margin = 22.78% (Net Income TTM 487.6m / Revenue TTM 2.14b)
Gross Margin = 80.11% ((Revenue TTM 2.14b - Cost of Revenue TTM 425.7m) / Revenue TTM)
Gross Margin QoQ = 83.23% (prev 80.07%)
Tobins Q-Ratio = 2.13 (Enterprise Value 11.1b / Total Assets 5.20b)
Interest Expense / Debt = 1.54% (Interest Expense 16.4m / Debt 1.07b)
Taxrate = 28.72% (196.5m / 684.2m)
NOPAT = 501.0m (EBIT 702.8m * (1 - 28.72%))
Current Ratio = 1.07 (Total Current Assets 3.48b / Total Current Liabilities 3.24b)
Debt / Equity = 1.86 (Debt 1.07b / totalStockholderEquity, last quarter 571.5m)
Debt / EBITDA = 0.97 (Net Debt 867.6m / EBITDA 898.3m)
Debt / FCF = 1.15 (Net Debt 867.6m / FCF TTM 754.5m)
Total Stockholder Equity = 1.21b (last 4 quarters mean from totalStockholderEquity)
RoA = 10.56% (Net Income 487.6m / Total Assets 5.20b)
RoE = 40.43% (Net Income TTM 487.6m / Total Stockholder Equity 1.21b)
RoCE = 33.37% (EBIT 702.8m / Capital Employed (Equity 1.21b + L.T.Debt 900.0m))
RoIC = 26.63% (NOPAT 501.0m / Invested Capital 1.88b)
WACC = 7.20% (E(10.2b)/V(11.3b) * Re(7.84%) + D(1.07b)/V(11.3b) * Rd(1.54%) * (1-Tc(0.29)))
Discount Rate = 7.84% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -72.93 | Cagr: -8.86%
[DCF] Terminal Value 77.97% ; FCFF base≈596.4m ; Y1≈683.6m ; Y5≈1.01b
[DCF] Fair Price = 316.7 (EV 15.1b - Net Debt 867.6m = Equity 14.3b / Shares 45.1m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 96.10 | EPS CAGR: 7.41% | SUE: 3.11 | # QB: 2
Revenue Correlation: 99.76 | Revenue CAGR: 10.09% | SUE: 3.81 | # QB: 2
EPS current Quarter (2026-09-30): EPS=2.79 | Chg30d=+0.86% | Revisions=+86% | Analysts=19
EPS current Year (2026-12-31): EPS=12.09 | Chg30d=+0.52% | Revisions=+87% | GrowthEPS=+30.9% | GrowthRev=+7.7%
EPS next Year (2027-12-31): EPS=13.95 | Chg30d=+0.74% | Revisions=+87% | GrowthEPS=+15.3% | GrowthRev=+7.4%
[Analyst] Revisions Ratio: +95% (up=59, down=0)