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About The Company

CEO

Mr. Chad R. Richison

Market Cap

14.87 Billion USD

Sector

Technology

Website

https://www.paycom.com

Last Update

12/05/2025, 04:42:57

Description

Paycom Software, Inc. provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States.

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Overview

Value

13

Growth

52

Health

38

Management

46

Analyst Opinion

74

Total

38

All Scores Out Of 100

Best Features

  • Earnings growth has improved recently
  • Has a low level of debt
  • Has a history of share buybacks
  • Low risk of bankruptcy
  • Liked by analysts
  • Low preportion of income is paid as dividend

Risk Factors

  • Overvalued on cashflow basis
  • Does not hold enough liquid assets to cover short term liabilities
  • No margin of safety at their current market price
  • Disliked by Twitter users
  • Price-to-earnings ratio of 28.4 is higher than the market average (19.6x)

Market Peers

PAYC

Key Figures

PE Ratio (TTM)

28.36

Margin Of Safety (DCF)

-72.47%

Revenue Growth (5 Year Average)

7.59%

Ratings Consensus

Buy

Share Buybacks

0.11%

Dividend Yeild (TTM)

0.58%

Valuation

Value Score

13

  • Estimated intrinsic-value of 69.56 USD is lower than current price ( 257.25 USD)
  • Price-to-earnings ratio of 28.4 is higher than the market average (19.6x)
  • Free-cashflow-yeild of 2.33% is worse than the market average (4.7%)
  • Margin-of-safety of -72.47% is worse than the market average (17.95%)

Desired Margin Of Safety

0%

Tip: Set your desired Margin Of Safety

Free Cash Flow Type

Annual Cashflow Growth

0%

Discount Rate

0%

Buy Target: < 56.8 USD

Current Price: 252.7 USD

How Does This Work?

Show Advanced Options

This calculator helps investors estimate the Intrinsic Value of a company based on the current value of future cash flows. To use the tool, simply input a desired Margin Of Safety, which is an additional discount applied to the present value of the expected future cash flows. The tool calculates the present value using a discount rate that reflects the risk and time value of money, and provides an estimated target price for the company based on the selected margin of safety. The calculator defaults to using 5 Year Free Cash Flow Growth % and a discount rate based on the US 10-year treasury bond coupon rate. Use our performance analyser to get a feel the impact this has on longterm investment returns and discover a margin of safety you are comfortable with. This can be a useful tool for investors looking to make informed decisions about whether to buy or sell shares of a particular company.

Price/Earnings

28.36x

Free Cashflow Yeild

2.33%

PE/Earnings Growth

0.52

Price/Book

9.28x

Growth

Growth Score

52

  • Revenue growth has improved this yeara
  • Earnings growth has improved this year
  • 5 Year Average Cashflow growth of 18.36% is higher than the market average (12.35%)
  • 5 Year Average Revenue growth of 7.59% is lower than the market average (10.97%)
  • 5 Year Average Earnings growth of 9.59% is lower than the market average (14.48%)
  • Free Cashflow growth has slowed this year

Revenue Growth

7.59%

Earnings Growth

9.59%

Cashflow Growth

18.36%

Health

Health Score

38

  • Low risk of bankruptcy
  • Has a low level of debt
  • Low financial Leverage
  • Normal operation does not require debt to be sustainable
  • Debt repayments do not significantly impact cashflow
  • Assets do not cover liabilities

Altman Z Score

3.05

Piostroski Score

7.00

Debt/Equity

0.05x

Current Assets/Liabilities

0.57x

Free Cashflow/Total Debt

1.31x

Debt/Capital

0.02x

Dividend

Secure Dividend Score

56

  • Dividend is likely safe
  • Long term dividend payout ratio of 7.34% is considered good
  • Payout ratio (TTM) of 16.89% is lower than the average (40%)
  • Dividend yeild of 0.58% is less than the market average (1.85%)
  • Dividends have been declining over the last 5 years
  • Dividend growth has been slowing recently
  • Spending a higher percentage of their income on dividends than last 5 years

Dividend Yeild

0.58%

Dividend Growth

-0.82%

Payout Ratio (Earnings)

16.89%

Payout Ratio (Cashflow)

24.87%

Management

Management Score

46

  • Has a history of returning value to shareholders through stock buybacks
  • Return-on-capital-employed of 2.33% is lower than the market average (10%)
  • Has repurchased shares when overvalued
  • Return-on-equity of 7.45% is lower than the market average (15%)

Average Buybacks/Dilution

0.11%

Recent Buybacks/Dilution

3.49%

5 Year Price Volitility

29.84%

Return On Assets

2.00%

Return On Capital Employed

2.33%

Return On Equity

7.45%

Return On Free Cashflow

N/A

Return On Investments

N/A

Social Sentiment

Social Sentiment Score

2

Twitter Sentiment

2.00

Stocktwits Sentiment

2.00

Analysts

Analyst Opinion

74

  • Ratings consensus is Buy

SEC Filings

Find yearly (10-K), quaterly (10-Q) and disclosure (8-K) report here, on the Securities and Exchange Commission's EDGAR database. If reading through reports isn't your cup of tea, don't worry. We've made it easy for you by summarizing all the important bits.

Other Information

Company Name

Paycom Software, Inc.

Currency

USD

Beta

1.141

Vol Avg

652810

Ceo

Mr. Chad R. Richison

Cik

0001590955

Cusip

70432V102

Exchange

New York Stock Exchange

Full Time Employees

7306

Industry

Software - Application

Sector

Technology

Ipo Date

2014-04-15

Address

7501 West Memorial Road

City

Oklahoma City

State

OK

Country

US

Zip

73142

Phone

405 722 6900

Analysis Last Updated

12/05/2025, 04:42:57

All financial data provided by FMP

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