PAYC Stock Analysis: Paycom Software | NYSE
Software - Application | NYSE, USA | Market Cap: 6.777m USD | 12M Return: -35.4% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 107M
EPS Trend: 95.3%
Qual. Beats: 1
Rev. Trend: 99.4%
Qual. Beats: 1
Warnings
Tailwinds
No distinct edge detected
Seasonality 10.5 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: 469.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 0.76 > 1.0 |
| NWC/Revenue: 3.36% < 20% (prev 26.50%; Δ -23.14% < -1%) |
| CFO/TA 0.15 > 3% & CFO 707.0m > Net Income 469.7m |
| Net Debt (698.3m) to EBITDA (838.6m): 0.83 < 3 |
| Current Ratio: 1.02 > 1.5 & < 3 |
| Outstanding Shares: last quarter (51.2m) vs 12m ago -9.06% < -2% |
| Gross Margin: 79.74% > 18% (prev 82.20%; Δ -2.47% > 0.5%) |
| Asset Turnover: 44.56% > 50% (prev 41.85%; Δ 2.71% > 0%) |
| Interest Coverage Ratio: 97.19 > 6 (EBIT TTM 651.2m / Interest Expense TTM 6.70m) |
| A: 0.01 (Total Current Assets 2.91b - Total Current Liabilities 2.84b) / Total Assets 4.82b |
| B: 0.50 (Retained Earnings 2.39b / Total Assets 4.82b) |
| C: 0.14 (EBIT TTM 651.2m / Avg Total Assets 4.70b) |
| D: 0.20 (Book Value of Equity 811.7m / Total Liabilities 4.01b) |
| Altman-Z'' = 2.86 = A |
| DSRI: 2.10 (Receivables 71.9m/31.3m, Revenue 2.09b/1.91b) |
| GMI: 1.03 (GM 82.20% / 79.74%) |
| AQI: 1.17 (AQ_t 0.24 / AQ_t-1 0.21) |
| SGI: 1.09 (Revenue 2.09b / 1.91b) |
| TATA: -0.05 (NI 469.7m - CFO 707.0m) / TA 4.82b) |
| Beneish M = -1.93 (Cap -4..+1) = B |
As of July 28, 2026, the stock is trading at USD 151.30 with a total of 828,477 shares traded. Over the past week, the price has changed by +1.06%, over one month by +18.97%, over three months by +22.45% and over the past year by -35.40%.
Current recommended Stop Loss: 143.60 (which is 5.1% 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 | 151.5 | 0.1% |
P/E Trailing = 16.043
P/E Forward = 12.7714
P/S = 3.2379
P/B = 7.9674
P/EG = 0.9993
Revenue TTM = 2.09b USD
EBIT TTM = 651.2m USD
EBITDA TTM = 838.6m USD
Long Term Debt = 675.0m USD (from longTermDebt, last quarter)
Short Term Debt = 28.6m USD (from shortTermDebt, last quarter)
Debt = 852.2m USD (from shortLongTermDebtTotal, last quarter) + Leases 88.6m
Net Debt = 698.3m USD (calculated: Debt 852.2m - CCE 153.9m)
Enterprise Value = 7.48b USD (6.78b + Debt 852.2m - CCE 153.9m)
Interest Coverage Ratio = 97.19 (Ebit TTM 651.2m / Interest Expense TTM 6.70m)
EV/FCF = 16.89x (Enterprise Value 7.48b / FCF TTM 442.6m)
FCF Yield = 5.92% (FCF TTM 442.6m / Enterprise Value 7.48b)
FCF Margin = 21.15% (FCF TTM 442.6m / Revenue TTM 2.09b)
Net Margin = 22.44% (Net Income TTM 469.7m / Revenue TTM 2.09b)
Gross Margin = 79.74% ((Revenue TTM 2.09b - Cost of Revenue TTM 424.1m) / Revenue TTM)
Gross Margin QoQ = 80.07% (prev 79.13%)
Tobins Q-Ratio = 1.55 (Enterprise Value 7.48b / Total Assets 4.82b)
Interest Expense / Debt = 0.79% (Interest Expense 6.70m / Debt 852.2m)
Taxrate = 27.11% (174.7m / 644.5m)
NOPAT = 474.7m (EBIT 651.2m * (1 - 27.11%))
Current Ratio = 1.02 (Total Current Assets 2.91b / Total Current Liabilities 2.84b)
Debt / Equity = 1.05 (Debt 852.2m / totalStockholderEquity, last quarter 811.7m)
Debt / EBITDA = 0.83 (Net Debt 698.3m / EBITDA 838.6m)
Debt / FCF = 1.58 (Net Debt 698.3m / FCF TTM 442.6m)
Total Stockholder Equity = 1.51b (last 4 quarters mean from totalStockholderEquity)
RoA = 10.00% (Net Income 469.7m / Total Assets 4.82b)
RoE = 31.03% (Net Income TTM 469.7m / Total Stockholder Equity 1.51b)
RoCE = 29.75% (EBIT 651.2m / Capital Employed (Equity 1.51b + L.T.Debt 675.0m))
RoIC = 24.90% (NOPAT 474.7m / Invested Capital 1.91b)
WACC = 7.85% (E(6.78b)/V(7.63b) * Re(8.76%) + D(852.2m)/V(7.63b) * Rd(0.79%) * (1-Tc(0.27)))
Discount Rate = 8.76% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -70.06 | Cagr: -5.56%
[DCF] Terminal Value 77.97% ; FCFF base≈419.5m ; Y1≈480.9m ; Y5≈707.6m
[DCF] Fair Price = 213.4 (EV 10.6b - Net Debt 698.3m = Equity 9.95b / Shares 46.6m; r=8.35% [WACC [floored]]; 5y FCF grow 14.99% → 2.50% )
EPS Correlation: 95.31 | EPS CAGR: 7.86% | SUE: 1.27 | # QB: 1
Revenue Correlation: 99.39 | Revenue CAGR: 10.80% | SUE: 1.47 | # QB: 1
EPS current Quarter (2026-06-30): EPS=2.38 | Chg30d=-0.04% | Revisions=+67% | Analysts=19
EPS next Quarter (2026-09-30): EPS=2.39 | Chg30d=-0.02% | Revisions=+57% | Analysts=19
EPS current Year (2026-12-31): EPS=10.91 | Chg30d=-0.05% | Revisions=-25% | GrowthEPS=+18.1% | GrowthRev=+6.7%
EPS next Year (2027-12-31): EPS=12.28 | Chg30d=-0.21% | Revisions=-25% | GrowthEPS=+12.5% | GrowthRev=+7.1%
[Analyst] Revisions Ratio: +59% (up=31, down=7)