Paycom exhibits strong business quality with solid financial performance and a competitive edge in automation. However, client growth concerns and potential macroeconomic impacts present challenges. Future prospects appear promising with ongoing innovation and strong sales momentum.
Analysis Date: February 12, 2025 Last Updated: May 29, 2025
+678%
+22.8% per year
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
CountryUS
ExchangeNYSE
IndustrySoftware - Application
SectorTechnology
Market Cap$11.62B
CEOMr. Chad R. Richison
Paycom Software, Inc. helps businesses manage their employees using online software. Their services cover everything from hiring new workers to handling payroll and tracking employee time. This means they provide tools for finding and hiring candidates, keeping track of hours worked, and making sure employees get paid correctly. Founded in 1998 and based in Oklahoma City, Paycom is designed for small to medium-sized companies in the U.S. looking to simplify their human resource tasks.
Streams of revenue
Recurring:99%
Implementation And Other:2%
Geographic Distribution
United States:100%
Estimations for reference only
Core Products
💵
PayrollAutomated payroll
👥
HR ManagementHR software suite
🌟
Talent ManagementRecruitment tools
⏰
Time and AttendanceTrack employee hours
🏥
Benefits AdministrationManage employee benefits
Business Type
Business to Business
Competitive Advantages
Unlock Competitive Advantages Analysis
Discover all competitive advantages and strategic moats that protect PAYC's market position.
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Graham Value Metrics
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
📊
Unlock Graham value analysis
Access Benjamin Graham's value investing criteria, intrinsic value calculations, and margin of safety analysis
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Income Statement Flow
Scroll horizontally to see more
About Profitability Metrics
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
📊
Unlock Profitability Metrics
Access detailed profitability metrics with visual gauges and benchmarks
PAYC Stock Analysis: Paycom Software, Inc. Investment Guide
PAYC (Paycom Software, Inc.) is a Technology company listed on New York Stock Exchange. The stock has generated 22.8% annual returns with an overall investment score of None/100.
Paycom exhibits strong business quality with solid financial performance and a competitive edge in automation. However, client growth concerns and potential macroeconomic impacts present challenges. Future prospects appear promising with ongoing innovation and strong sales momentum.
PAYC Key Financial Metrics
PAYC financial analysis includes comprehensive valuation ratios, profitability metrics, and financial health indicators. The company has a valuation score of 3.3751691184914945/100 and profitability score of 5.0/100 with financial health rated 7.45/100.
About Paycom Software, Inc.
Paycom Software, Inc. helps businesses manage their employees using online software. Their services cover everything from hiring new workers to handling payroll and tracking employee time. This means they provide tools for finding and hiring candidates, keeping track of hours worked, and making sure employees get paid correctly. Founded in 1998 and based in Oklahoma City, Paycom is designed for small to medium-sized companies in the U.S. looking to simplify their human resource tasks.
PAYC Investment Recommendation
Based on our comprehensive analysis of PAYC, investors should consider the company's strong performance track record, earnings consistency (10/10 quarters beat expectations), and current valuation metrics when making investment decisions.
Technology Sector Analysis
PAYC operates in the Software - Application industry within the Technology sector. This analysis compares Paycom Software, Inc. performance against industry and sector benchmarks to provide context for investment decisions.
Frequently Asked Questions about PAYC Stock
Is PAYC a good investment?
PAYC (Paycom Software, Inc.) has generated 22.8% annual returns with an overall score of None/100. Paycom exhibits strong business quality with solid financial performance and a competitive edge in automation. However, client growth concerns and potential macroeconomic impacts present challenges. Future prospects appear promising with … Investors should consider their risk tolerance and investment goals when evaluating PAYC.
What is PAYC P/E ratio and valuation?
PAYC valuation metrics including P/E ratio, price-to-book ratio, and price-to-sales ratio are analyzed on this page with comparisons to Software - Application industry and Technology sector benchmarks. The company currently has a valuation score of 3.3751691184914945/100.
Should I buy PAYC stock now?
The decision to buy PAYC stock should be based on comprehensive analysis of financial metrics, market conditions, and individual investment goals. Our analysis provides profitability score of 5.0/100, financial health score of 7.45/100, and detailed performance metrics to help inform your investment decision.
What are PAYC financial health indicators?
PAYC financial health analysis includes liquidity ratios, debt levels, cash flow metrics, and profitability indicators. The company has a financial health score of 7.45/100 based on comprehensive analysis of balance sheet strength and operational efficiency.
How does PAYC compare to competitors?
PAYC performance is benchmarked against Software - Application industry peers and Technology sector averages. Our analysis includes comparative valuation ratios, profitability metrics, and growth indicators to provide context for Paycom Software, Inc.'s market position.
What are PAYC historical returns?
PAYC has generated 22.8% annual returns over the 10Y. Historical performance analysis includes price appreciation, dividend yields, and total shareholder returns compared to market benchmarks.
PAYC Key Investment Metrics Summary
Annual Return: 22.8%
Valuation Score: 3.3751691184914945/100
Profitability Score: 5.0/100
Financial Health Score: 7.45/100
Growth Score: 10.066220517119387/100
Earnings Beat Rate: 10/10 quarters
Sector: Technology
Industry: Software - Application
Exchange: New York Stock Exchange
Market Cap: 11616805750
PAYC Investment Thesis
Paycom Software, Inc. (PAYC) represents an excellent investment opportunity in the Technology sector. With an overall score of None/100, the company demonstrates areas for financial improvement.
Investment Strengths
Reasonable Price to Earnings Ratio
Strong Price to Sales Ratio
Strong Gross Profit Margin
High Return on Equity
Low Debt Levels
Strong Liquidity Position
Strong Competitive Position
Financial Stability and Growth
Innovative Product Roadmap
Strong Sales Momentum
Investment Risks
High Price to Free Cash Flow Ratio
Elevated EV to EBITDA
Moderate Net Profit Margin
Low Cash Ratio
Client Growth Concerns
Potential Macroeconomic Impact
We use cookies to analyze site traffic and optimize your site experience.
By accepting, you consent to our use of cookies. Read our Privacy Policy to Learn more.