Stock Analysis
PAYCOM SOFTWARE, INC.PAYC
P/E 23.26×· 5Y range 11.21–187.56×· bottom 21% of history
Sector: Technology · Industry: Services-Prepackaged Software
AnalystsHold27 analystsP/E 23.3× sits at the 21st percentile of its 5.059548254620124-year history.
Cash covers 74% of debt · FY 2025.
PMP Verdict
Strong business, attractive price
Strengths
- Profitability100
- Growth95
High-quality business at an attractive price.
Bull Case
- ✓ROE 28.2% — efficient capital deployment
- ✓Revenue CAGR 18.1% — durable top-line growth
- ✓Interest coverage 26.1× — debt well covered
- ✓P/E 23.3× at bottom 21% of 5-year history
What's happening with PAYC
Profile
Strong profitability, moat, growth, earnings quality and financial health.
How is each axis scored?
- Valuation64/100 · Moderate
- P/E vs own history (21th pct)20/25
- FCF yield (5.1%)20/25
- P/S (5.3x)12/25
- EV/EBIT (17.7x)12/25
- Growth95/100 · Strong
- Revenue CAGR (18.1%)20/25
- Net income CAGR (23.3%)25/25
- EPS CAGR 5Y (24.5%)25/25
- Fwd implied growth (39.1%)25/25
- Profitability100/100 · Strong
- ROIC (27.5%)25/25
- ROE (28.2%)25/25
- Net margin (22.8%)25/25
- Operating margin (30.3%)25/25
- Financial Health75/100 · Strong
- Altman Z (2.45)18/25
- Current ratio (1.09)12/25
- Interest coverage (26.1x)25/25
- Net cash / debt (D/A 2%)20/25
- Quality80/100 · Strong
- Piotroski F (5/9)15/25
- Beneish M (-2.42)20/25
- FCF conversion (118%)25/25
- Margin stability (σ 6.9%)20/25
- Moat100/100 · Strong
- ROIC >12% years (10/10 yrs)25/25
- Median gross margin (84.3%)25/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst 13.3%)25/25
About PAYCOM SOFTWARE, INC.
Paycom is a cloud-based human capital management provider offering payroll, compliance, and human resources management solutions. Show more
The firm's solutions are available on a unified, modular platform, and customers are billed for access on a subscription basis. Paycom's customer base skews toward the midmarket and is primarily based in North America. As of 2025, the firm manages records for 7.4 million employees across more than 20,000 clients on a parent-company-group basis.
Headquarters: OKLAHOMA CITY, OK · Employees: 5,770 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
64BP/E (TTM)23.3xB
Grade B: FairPrice / TTM EPS (own statements) — vs own 5Y history: 11.2x–187.6x · 21st pct
P/FCF19.6xB
Grade B: FairPrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield5.1%A
Grade A: ValueTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 0.5%–10.5% · 86th pct
P/S (TTM)5.30xC
Grade C: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 2.6x–32.5x · 21st pct
EV/EBIT17.7xB
Grade B: FairEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 9.6x–144.6x · 20th pct
EV/Sales5.6xC
Grade C: ExpensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E16.7xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio6.55xC
Grade C: ExpensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio1.31B
Grade B: FairFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield0.69%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio15.9%A
Grade A: SafeDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
100A+ROIC27.5%A
Grade A: MoatNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE28.2%A
Grade A: StrongReturn on Equity. Neg. equity = heavy buybacks
ROA8.9%C
Grade C: AverageReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin22.8%A
Grade A: HighNet Income / Revenue
Operating Margin30.3%A
Grade A: HighTTM EBIT / TTM Revenue
Gross Margin83.7%A
Grade A: PremiumGross Profit / Revenue
FCF Margin26.9%A
Grade A: HighFCF / Revenue
True FCF Margin22.7%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
95A+Revenue CAGR18.1%A
Grade A: HighCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR23.3%A
Grade A: HighCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)24.5%A
Grade A: HighCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth39.1%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-22.5%A
Grade A: BuybacksShare count change over 5Y
SBC / Net Income18.4%C
Grade C: MedStock-based comp/Net income. >30% = dilution risk
SBC / Revenue4.2%C
Grade C: MedTTM stock-based comp / TTM Revenue
Financial Health
75B+Altman Z-Score2.45C
Grade C: Gray zoneBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio1.09xC
Grade C: OkCurrent Assets/Liabilities
Quick Ratio1.06xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage26.1xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt Repayment0.2yA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBIT0.2xA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity0.29xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.74xC
Grade C: PartialCash covers how much of total debt. >1 = could repay all debt from cash
Quality
80APiotroski F-Score5/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.42A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion117.9%A
Grade A: StrongFCF / Net Income
Margin Stability6.9%A
Grade A: StableEBIT margin std deviation. Lower = stable
Capex / Revenue10.6%C
Grade C: AverageTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.39xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Hadlock Terrell Shane Filed | Hadlock Terrell Shane | SellOpen market sale | -241 | |
Hadlock Terrell Shane Filed | Hadlock Terrell Shane | SellOpen market sale | -938 | |
Hadlock Terrell Shane Filed | Hadlock Terrell Shane | SellOpen market sale | -1639 | |
Boelte Craig E. Filed | Boelte Craig E. | Gift | -1000 | |
KERBER WILLIAM XAVIER III Filed | KERBER WILLIAM XAVIER III | Grant / award | +1.4K |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Boelte Craig E. Filed | Boelte Craig E. | Grant / award | +1.4K | |
Richison Chad R. Filed | Richison Chad R. | Gift | +12.5K | |
Richison Chad R. Filed | Richison Chad R. | Gift | -12500 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
100A+ROIC >12% Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)84.3%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor13.3%A
Grade A: DurableWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$10.82
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$4.47
Cash & short-term investments per share (Finnhub)
Book Value / Share$12.90
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$498.80M
Total debt obligations (short + long term)
Cash & Equiv.$370.00M
Cash and short-term investments
Net Debt$128.80M
Total Debt minus Cash. Negative = Net Cash position
Total Equity$1.73B
Shareholders' equity (book value)
Asset / Liability1.30xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$11.34B
Current Market Capitalization
Beta0.77B
Grade B: DefensivePrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: PAYCOM SOFTWARE, INC. (PAYC)
Piotroski F-Score of 5/9 indicates mixed fundamentals for PAYCOM SOFTWARE, INC.. Altman Z-Score of 2.45 falls in the grey zone (1.81–2.99) — financial distress is unlikely but not ruled out. Beneish M-Score of -2.42 suggests a low likelihood of earnings manipulation. Revenue has compounded at roughly 18% annually, with net income growing about 23% per year — a strong growth profile.
- PAYCOM SOFTWARE, INC. converts about 27% of revenue into free cash flow — strong cash generation.
- Takes ~0.2 years to repay net debt from free cash flow.
- Return on equity of 28.2% is well above the market average.
See how PAYC ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all PAYC moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 15 | Regular | 251.42 | +5.19% | 2.96 |
| Oct 15 | After-hours | 252.50 | +5.65% | 3.22 |
| Oct 1 | Regular | 227.43 | +4.49% | 2.77 |
Frequently Asked Questions about PAYC
What is the current PAYCOM SOFTWARE, INC. (PAYC) stock price?
PAYC is trading at $251.64 at the last market close, down 0.49% on the session. PreMarketPrice tracks PAYC pre-market, intraday and after-hours prices.
Is PAYC stock a buy right now?
PreMarketPrice's quantitative model rates PAYCOM SOFTWARE, INC.'s financial health at 75/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is PAYC stock overvalued?
PAYCOM SOFTWARE, INC. trades at a trailing P/E of 23.3 and our valuation score rates it 64/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does PAYCOM SOFTWARE, INC. report earnings?
No confirmed earnings date is currently scheduled for PAYC. The Earnings section lists recent reports and updates as dates are announced.
What sector does PAYCOM SOFTWARE, INC. operate in?
PAYCOM SOFTWARE, INC. operates in the Technology sector, within the Services-Prepackaged Software industry. The Related Stocks section lists sector peers for comparison.
What does PAYCOM SOFTWARE, INC. do?
Paycom is a cloud-based human capital management provider offering payroll, compliance, and human resources management solutions.
About PAYCOM SOFTWARE, INC. (PAYC) Stock
PAYCOM SOFTWARE, INC. (PAYC) is a US-listed stock operating in the Technology sector, specifically the Services-Prepackaged Software industry. As of the latest update, PAYCOM SOFTWARE, INC. is trading at $251.64, down 0.49% on the day with a market capitalization of $11.3 billion. The financial health score for PAYC is 75/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for PAYC stock.
PAYC Stock Analysis & Key Metrics
On PreMarketPrice, you can track PAYCOM SOFTWARE, INC. (PAYC) across multiple dimensions:
- Pre-market price & movement: Real-time PAYC stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for PAYC with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for PAYCOM SOFTWARE, INC. across multiple reporting periods.
- Financial health score: A composite score of 75/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for PAYC.
- Sector peers: Compare PAYC against 6 other technology stocks on key financial metrics.
Is PAYC a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate PAYCOM SOFTWARE, INC. (PAYC) as an investment. The financial health score of 75/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.PAYCOM SOFTWARE, INC. (PAYC) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.