(PAYC) Paycom Software - Overview
Exchange: NYSE •
Country: United States •
Currency: USD •
Type: Common Stock •
ISIN: US70432V1026
Stock: Payroll, Talent, Hcm, Analytics, Compliance
Total Rating 35
Risk 85
Buy Signal -1.70
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 0.71% |
| Yield on Cost 5y | 0.36% |
| Yield CAGR 5y | 15.47% |
| Payout Consistency | 98.8% |
| Payout Ratio | 22.1% |
| Risk 5d forecast | |
|---|---|
| Volatility | 38.1% |
| Relative Tail Risk | -9.99% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -1.14 |
| Alpha | -51.82 |
| Character TTM | |
|---|---|
| Beta | 1.015 |
| Beta Downside | 0.879 |
| Drawdowns 3y | |
|---|---|
| Max DD | 65.83% |
| CAGR/Max DD | -0.38 |
Description: PAYC Paycom Software January 04, 2026
Paycom Software (NYSE:PAYC) delivers a cloud-based Human Capital Management (HCM) platform as SaaS to U.S. small- and mid-size enterprises, covering the full employment lifecycle-from talent acquisition and time-and-labor tracking to payroll processing, benefits administration, and performance management. The suite integrates tools such as applicant tracking, e-Verify, payroll tax handling, employee self-service, and compliance modules like COBRA and ACA, plus a mobile manager portal for real-time approvals and communication.
Key recent metrics underscore Paycom’s growth trajectory: FY 2024 revenue rose 22% YoY to $1.38 billion, subscription-based ARR exceeded $1.2 billion with a sub-2% churn rate, and gross margins improved to 81% driven by scale efficiencies. The company benefits from macro trends including a tight U.S. labor market that fuels demand for automated hiring tools, and a broader shift toward SaaS-enabled HR solutions as firms seek cost-effective compliance and remote-work capabilities.
For a deeper, data-driven valuation perspective, check out the ValueRay analysis of PAYC.
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income: 453.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 0.50 > 1.0 |
| NWC/Revenue: 23.16% < 20% (prev 17.45%; Δ 5.71% < -1%) |
| CFO/TA 0.15 > 3% & CFO 641.3m > Net Income 453.2m |
| Net Debt (-290.5m) to EBITDA (782.2m): -0.37 < 3 |
| Current Ratio: 1.22 > 1.5 & < 3 |
| Outstanding Shares: last quarter (56.4m) vs 12m ago 0.78% < -2% |
| Gross Margin: 81.77% > 18% (prev 0.82%; Δ 8095 % > 0.5%) |
| Asset Turnover: 51.73% > 50% (prev 52.22%; Δ -0.50% > 0%) |
| Interest Coverage Ratio: 164.3 > 6 (EBITDA TTM 782.2m / Interest Expense TTM 3.75m) |
Altman Z'' 4.34
| A: 0.11 (Total Current Assets 2.54b - Total Current Liabilities 2.08b) / Total Assets 4.25b |
| B: 0.51 (Retained Earnings 2.16b / Total Assets 4.25b) |
| C: 0.16 (EBIT TTM 615.5m / Avg Total Assets 3.87b) |
| D: 0.85 (Book Value of Equity 2.16b / Total Liabilities 2.54b) |
| Altman-Z'' Score: 4.34 = AA |
Beneish M -2.66
| DSRI: 1.49 (Receivables 50.4m/30.9m, Revenue 2.00b/1.82b) |
| GMI: 1.00 (GM 81.77% / 82.15%) |
| AQI: 0.90 (AQ_t 0.23 / AQ_t-1 0.25) |
| SGI: 1.10 (Revenue 2.00b / 1.82b) |
| TATA: -0.04 (NI 453.2m - CFO 641.3m) / TA 4.25b) |
| Beneish M-Score: -2.66 (Cap -4..+1) = A |
What is the price of PAYC shares?
As of February 07, 2026, the stock is trading at USD 130.97 with a total of 1,882,343 shares traded.
Over the past week, the price has changed by -2.81%, over one month by -16.34%, over three months by -19.96% and over the past year by -35.66%.
Over the past week, the price has changed by -2.81%, over one month by -16.34%, over three months by -19.96% and over the past year by -35.66%.
Is PAYC a buy, sell or hold?
Paycom Software has received a consensus analysts rating of 3.25.
Therefor, it is recommend to hold PAYC.
- StrongBuy: 3
- Buy: 0
- Hold: 16
- Sell: 1
- StrongSell: 0
What are the forecasts/targets for the PAYC price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 197.2 | 50.6% |
| Analysts Target Price | 197.2 | 50.6% |
| ValueRay Target Price | 104.8 | -20% |
PAYC Fundamental Data Overview February 03, 2026
P/E Trailing = 16.6976
P/E Forward = 13.1579
P/S = 3.7878
P/B = 4.315
P/EG = 0.6943
Revenue TTM = 2.00b USD
EBIT TTM = 615.5m USD
EBITDA TTM = 782.2m USD
Long Term Debt = 84.5m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 23.4m USD (from shortTermDebt, last quarter)
Debt = 84.5m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -290.5m USD (from netDebt column, last quarter)
Enterprise Value = 7.29b USD (7.58b + Debt 84.5m - CCE 375.0m)
Interest Coverage Ratio = 164.3 (Ebit TTM 615.5m / Interest Expense TTM 3.75m)
EV/FCF = 18.57x (Enterprise Value 7.29b / FCF TTM 392.5m)
FCF Yield = 5.38% (FCF TTM 392.5m / Enterprise Value 7.29b)
FCF Margin = 19.61% (FCF TTM 392.5m / Revenue TTM 2.00b)
Net Margin = 22.65% (Net Income TTM 453.2m / Revenue TTM 2.00b)
Gross Margin = 81.77% ((Revenue TTM 2.00b - Cost of Revenue TTM 364.8m) / Revenue TTM)
Gross Margin QoQ = 77.90% (prev 81.91%)
Tobins Q-Ratio = 1.72 (Enterprise Value 7.29b / Total Assets 4.25b)
Interest Expense / Debt = 1.30% (Interest Expense 1.10m / Debt 84.5m)
Taxrate = 27.55% (42.1m / 152.8m)
NOPAT = 445.9m (EBIT 615.5m * (1 - 27.55%))
Current Ratio = 1.22 (Total Current Assets 2.54b / Total Current Liabilities 2.08b)
Debt / Equity = 0.05 (Debt 84.5m / totalStockholderEquity, last quarter 1.71b)
Debt / EBITDA = -0.37 (Net Debt -290.5m / EBITDA 782.2m)
Debt / FCF = -0.74 (Net Debt -290.5m / FCF TTM 392.5m)
Total Stockholder Equity = 1.70b (last 4 quarters mean from totalStockholderEquity)
RoA = 11.71% (Net Income 453.2m / Total Assets 4.25b)
RoE = 26.64% (Net Income TTM 453.2m / Total Stockholder Equity 1.70b)
RoCE = 34.47% (EBIT 615.5m / Capital Employed (Equity 1.70b + L.T.Debt 84.5m))
RoIC = 26.22% (NOPAT 445.9m / Invested Capital 1.70b)
WACC = 9.55% (E(7.58b)/V(7.67b) * Re(9.65%) + D(84.5m)/V(7.67b) * Rd(1.30%) * (1-Tc(0.28)))
Discount Rate = 9.65% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.73%
[DCF Debug] Terminal Value 75.54% ; FCFF base≈357.6m ; Y1≈419.5m ; Y5≈636.1m
Fair Price DCF = 155.6 (EV 8.25b - Net Debt -290.5m = Equity 8.54b / Shares 54.9m; r=9.55% [WACC]; 5y FCF grow 18.42% → 2.90% )
EPS Correlation: 64.35 | EPS CAGR: 16.05% | SUE: -0.27 | # QB: 0
Revenue Correlation: 89.83 | Revenue CAGR: 15.76% | SUE: 0.11 | # QB: 0
EPS next Quarter (2026-03-31): EPS=2.95 | Chg30d=-0.014 | Revisions Net=-2 | Analysts=20
EPS next Year (2026-12-31): EPS=10.05 | Chg30d=-0.029 | Revisions Net=-3 | Growth EPS=+8.1% | Growth Revenue=+8.6%
P/E Forward = 13.1579
P/S = 3.7878
P/B = 4.315
P/EG = 0.6943
Revenue TTM = 2.00b USD
EBIT TTM = 615.5m USD
EBITDA TTM = 782.2m USD
Long Term Debt = 84.5m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 23.4m USD (from shortTermDebt, last quarter)
Debt = 84.5m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -290.5m USD (from netDebt column, last quarter)
Enterprise Value = 7.29b USD (7.58b + Debt 84.5m - CCE 375.0m)
Interest Coverage Ratio = 164.3 (Ebit TTM 615.5m / Interest Expense TTM 3.75m)
EV/FCF = 18.57x (Enterprise Value 7.29b / FCF TTM 392.5m)
FCF Yield = 5.38% (FCF TTM 392.5m / Enterprise Value 7.29b)
FCF Margin = 19.61% (FCF TTM 392.5m / Revenue TTM 2.00b)
Net Margin = 22.65% (Net Income TTM 453.2m / Revenue TTM 2.00b)
Gross Margin = 81.77% ((Revenue TTM 2.00b - Cost of Revenue TTM 364.8m) / Revenue TTM)
Gross Margin QoQ = 77.90% (prev 81.91%)
Tobins Q-Ratio = 1.72 (Enterprise Value 7.29b / Total Assets 4.25b)
Interest Expense / Debt = 1.30% (Interest Expense 1.10m / Debt 84.5m)
Taxrate = 27.55% (42.1m / 152.8m)
NOPAT = 445.9m (EBIT 615.5m * (1 - 27.55%))
Current Ratio = 1.22 (Total Current Assets 2.54b / Total Current Liabilities 2.08b)
Debt / Equity = 0.05 (Debt 84.5m / totalStockholderEquity, last quarter 1.71b)
Debt / EBITDA = -0.37 (Net Debt -290.5m / EBITDA 782.2m)
Debt / FCF = -0.74 (Net Debt -290.5m / FCF TTM 392.5m)
Total Stockholder Equity = 1.70b (last 4 quarters mean from totalStockholderEquity)
RoA = 11.71% (Net Income 453.2m / Total Assets 4.25b)
RoE = 26.64% (Net Income TTM 453.2m / Total Stockholder Equity 1.70b)
RoCE = 34.47% (EBIT 615.5m / Capital Employed (Equity 1.70b + L.T.Debt 84.5m))
RoIC = 26.22% (NOPAT 445.9m / Invested Capital 1.70b)
WACC = 9.55% (E(7.58b)/V(7.67b) * Re(9.65%) + D(84.5m)/V(7.67b) * Rd(1.30%) * (1-Tc(0.28)))
Discount Rate = 9.65% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.73%
[DCF Debug] Terminal Value 75.54% ; FCFF base≈357.6m ; Y1≈419.5m ; Y5≈636.1m
Fair Price DCF = 155.6 (EV 8.25b - Net Debt -290.5m = Equity 8.54b / Shares 54.9m; r=9.55% [WACC]; 5y FCF grow 18.42% → 2.90% )
EPS Correlation: 64.35 | EPS CAGR: 16.05% | SUE: -0.27 | # QB: 0
Revenue Correlation: 89.83 | Revenue CAGR: 15.76% | SUE: 0.11 | # QB: 0
EPS next Quarter (2026-03-31): EPS=2.95 | Chg30d=-0.014 | Revisions Net=-2 | Analysts=20
EPS next Year (2026-12-31): EPS=10.05 | Chg30d=-0.029 | Revisions Net=-3 | Growth EPS=+8.1% | Growth Revenue=+8.6%