Paycom Software, Inc.

PAYC: NYSE
60Total

Lowest reading is at 47 out of 100. All scores are out of 100.

About The Company

CEO

Mr. Chad R. Richison

Market Cap

9.94 Billion USD

Sector

Technology

Website

https://www.paycom.com

Last Update

27/09/2026, 17:35:19

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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Strongest readings

  • ✔Share count has been falling at 1.35% per year

Weakest readings

  • ✘The current price sits above estimated fair value (margin of safety -82.28%)
  • ✘Debt is high at 1.57 times equity
  • ✘Price-to-earnings of 23.5 is above the market average of 19.6

Key Figures

StatusMetricValueReadingMarket avg
✘
Price / earnings (TTM)
23.45x
19.60x
✘
Margin of safety (DCF)
-82.28%
17.95%
✘
Revenue growth (5y average)
3.29%
10.97%
✘
Dividend yield (TTM)
0.78%
1.85%
✔
Share count, per year
-1.35%
0.00%
✘Return on capital employed8.54%
10.00%

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

Valuation

47 / 100

Priced above the market on most measures.

StatusMetricValueReadingMarket avg
✘
Price / earnings
23.45x
19.60x
✔Free cashflow yield5.79%
4.70%
Price / earnings growthN/A1.50x
Price / book17.39x
—
✘
Margin of safety
-82.28%
17.95%

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

  • ✘Estimated intrinsic value of 39.07 USD is below the current price of 220.46 USD

Desired Margin Of Safety

0%

▼

Tip: Set your desired Margin Of Safety

Free Cash Flow Type

Annual Cashflow Growth

0%

Discount Rate

0%

Estimated Fair Value: 58.6 USD ✘

Current Price: 220.5 USD

How Does This Work?

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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 fair value 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 for the impact this has on longterm investment returns and find a margin of safety you are comfortable with.

Growth

53 / 100

Growing faster than the market on most measures.

StatusMetricValueReadingMarket avg
✘
Revenue growth
3.29%
10.97%
✘Earnings growth3.59%
14.48%
✔Cashflow growth31.25%
12.35%

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

  • ✔Revenue growth has improved this year (12.46% against a five year average of 3.29%)
  • ✔Earnings growth has improved this year (42.65% against a five year average of 3.59%)
  • ✔Free cashflow growth has improved this year

Health

53 / 100

Balance sheet covers its obligations.

Measured on Leverage and capital, Funding and liquidity, Earnings quality.

StatusMetricValueReadingThreshold
✘Altman-Z score2.22
3.00
✔Piotroski score5.00
5.00
✘Debt / equity1.57x
0.80x
✔Current ratio1.07x
1.00x
✔Interest coverage15.94x
2.50x
✔Free cashflow / debt0.21x
0.15x
✔Debt / capital0.61x
1.00x

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    Dividend

    52 / 100

    Covered, with limited headroom.

    StatusMetricValueReadingMarket avg
    ✘
    Dividend yield
    0.78%
    1.85%
    ✔Dividend growth0.56%
    0.00%
    ✔Payout ratio (earnings)15.87%
    40.00%
    ✔Payout ratio (cashflow)13.46%
    65.00%
    ✘Worst year, last 5 years-6.32%
    -2.00%

    The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    • ✔Dividend growth has been accelerating recently

    Management

    86 / 100

    Returns on capital are at or above the market.

    StatusMetricValueReadingMarket avg
    ✔Return on equity18.79%
    15.00%
    ✘Return on capital employed8.54%
    10.00%
    Return on assets2.06%
    —
    Free cashflow return on capital9.70%
    —
    ✔Return on capital, 5y change2.50%
    0.00%
    ✔
    Share count, per year
    -1.35%
    0.00%
    ✔Share count, recent-1.67%
    0.00%
    ✔Realized buyback return52.79%
    0.00%
    ✔Goodwill erosion / equity0.00%
    2.00%
    Price volatility, 5 year47.77%
    —

    The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    • ✘Shares were repurchased while the value score was only 47 out of 100
    • ✘Return on equity of 18.79% is driven by debt rather than operations, because return on capital employed is only 8.54%

    Analysts

    not enough data
    StatusMetricValueReadingNeutral
    Analyst opinion scoreN/A50

    The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    Financial History

    Annual figures across the full reporting history we hold.

    Market Peers

    PAYC

    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.

    See 35+ Years Annual Reports

    Other Information

    Company Name

    Paycom Software, Inc.

    Currency

    USD

    Beta

    0.786

    Vol Avg

    834014

    Ceo

    Mr. Chad R. Richison

    Cik

    0001590955

    Cusip

    Exchange

    NYSE

    Full Time Employees

    5770

    Industry

    Software - Application

    Sector

    Technology

    Ipo Date

    Address

    7501 West Memorial Road

    City

    Oklahoma City

    State

    OK

    Country

    United States

    Zip

    73142

    Phone

    405 722 6900

    Analysis Last Updated

    27/09/2026, 17:35:19

    Financial data compiled from SEC EDGAR filings and Yahoo Finance.

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