PAYC Stock Analysis: Paycom Software | NYSE
Software - Application | NYSE, USA | Market Cap: 8.150m USD | 12M Return: -2.3% | US70432V1026 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 113M
EPS Trend: 96.1%
Qual. Beats: 2
Rev. Trend: 99.8%
Qual. Beats: 2
Warnings
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: 0.11 > 0.02 and ΔFCF/TA 2.11 > 1.0 |
| NWC/Revenue: 11.20% < 20% (prev 28.24%; Δ -17.04% < -1%) |
| CFO/TA 0.15 > 3% & CFO 799.6m > Net Income 487.6m |
| Net Debt (873.4m) to EBITDA (814.8m): 1.07 < 3 |
| Current Ratio: 1.07 > 1.5 & < 3 |
| Outstanding Shares: last quarter (48.5m) vs 12m ago -13.85% < -2% |
| Gross Margin: 81.36% > 18% (prev 82.44%; Δ -1.08% > 0.5%) |
| Asset Turnover: 46.37% > 50% (prev 48.62%; Δ -2.25% > 0%) |
| Interest Coverage Ratio: 27.52 > 6 (EBIT TTM 671.6m / Interest Expense TTM 24.4m) |
| 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 671.6m / Avg Total Assets 4.62b) |
| D: 0.41 (Book Value of Equity 571.5m / Total Liabilities 1.39b) |
| Altman-Z'' = 3.27 = A |
| DSRI: 1.06 (Receivables 53.5m/46.2m, Revenue 2.14b/1.96b) |
| GMI: 1.01 (GM 82.44% / 81.36%) |
| AQI: 0.81 (AQ_t 0.19 / AQ_t-1 0.24) |
| SGI: 1.09 (Revenue 2.14b / 1.96b) |
| TATA: -0.06 (NI 487.6m - CFO 799.6m) / TA 5.20b) |
| Beneish M = -3.02 (Cap -4..+1) = AA |
As of August 07, 2026, the stock is trading at USD 215.97 with a total of 3,654,979 shares traded. Over the past week, the price has changed by +33.71%, over one month by +54.37%, over three months by +71.40% and over the past year by -2.34%.
Current recommended Stop Loss: 206.40 (which is 4.4% 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 | 152.3 | -29.5% |
P/E Trailing = 20.2784
P/E Forward = 15.1057
P/S = 3.8939
P/B = 9.4185
P/EG = 1.1813
Revenue TTM = 2.14b USD
EBIT TTM = 671.6m USD
EBITDA TTM = 814.8m USD
Long Term Debt = 675.0m USD (from longTermDebt, two quarters ago)
Short Term Debt = 28.8m USD (from shortTermDebt, last quarter)
Debt = 1.07b USD (from shortLongTermDebtTotal, last quarter) + Leases 88.6m
Net Debt = 873.4m USD (calculated: Debt 1.07b - CCE 198.0m)
Enterprise Value = 9.02b USD (8.15b + Debt 1.07b - CCE 198.0m)
Interest Coverage Ratio = 27.52 (Ebit TTM 671.6m / Interest Expense TTM 24.4m)
EV/FCF = 15.74x (Enterprise Value 9.02b / FCF TTM 573.2m)
FCF Yield = 6.35% (FCF TTM 573.2m / Enterprise Value 9.02b)
FCF Margin = 26.78% (FCF TTM 573.2m / Revenue TTM 2.14b)
Net Margin = 22.78% (Net Income TTM 487.6m / Revenue TTM 2.14b)
Gross Margin = 81.36% ((Revenue TTM 2.14b - Cost of Revenue TTM 399.0m) / Revenue TTM)
Gross Margin QoQ = 88.25% (prev 80.07%)
Tobins Q-Ratio = 1.73 (Enterprise Value 9.02b / Total Assets 5.20b)
Interest Expense / Debt = 2.28% (Interest Expense 24.4m / Debt 1.07b)
Taxrate = 28.72% (196.5m / 684.1m)
NOPAT = 478.7m (EBIT 671.6m * (1 - 28.72%))
Current Ratio = 1.07 (Total Current Assets 3.48b / Total Current Liabilities 3.24b)
Debt / Equity = 1.87 (Debt 1.07b / totalStockholderEquity, last quarter 571.5m)
Debt / EBITDA = 1.07 (Net Debt 873.4m / EBITDA 814.8m)
Debt / FCF = 1.52 (Net Debt 873.4m / FCF TTM 573.2m)
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 = 35.70% (EBIT 671.6m / Capital Employed (Equity 1.21b + L.T.Debt 675.0m))
RoIC = 25.45% (NOPAT 478.7m / Invested Capital 1.88b)
WACC = 7.21% (E(8.15b)/V(9.22b) * Re(7.94%) + D(1.07b)/V(9.22b) * Rd(2.28%) * (1-Tc(0.29)))
Discount Rate = 7.94% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -75.84 | Cagr: -6.60%
[DCF] Terminal Value 77.97% ; FCFF base≈487.6m ; Y1≈559.0m ; Y5≈822.6m
[DCF] Fair Price = 246.8 (EV 12.4b - Net Debt 873.4m = Equity 11.5b / Shares 46.6m; 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=2.39 | Chg30d=-0.02% | Revisions=-25% | Analysts=19
EPS current Year (2026-12-31): EPS=10.91 | Chg30d=-0.00% | Revisions=-40% | GrowthEPS=+18.1% | GrowthRev=+6.7%
EPS next Year (2027-12-31): EPS=12.28 | Chg30d=-0.08% | Revisions=-25% | GrowthEPS=+12.5% | GrowthRev=+7.1%
[Analyst] Revisions Ratio: -57% (up=0, down=4)