PAYC

Strong BuyPremium GrowerAI neutral

Paycom Software, Inc. · Technology · United States · $12.4B cap · $179.4M/day traded

$268.25 -2.3% · close 26 Oct · scored 24 Oct

Premium Grower: Strong business with the market behind it, priced at a premium.

87
StockRank
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Report expected 4 Nov: the next-year EPS estimate has risen 13.5% over the last 14 weeks.

Quality
65
Value
43
Momentum
79

As of 24 Oct 2026, MoatMap's StockRank for Paycom Software, Inc. (PAYC) is 87/100, ranked against 24,000+ stocks in 35 markets (Quality 65, Value 43, Momentum 79, each scored against its sector).

Does StockRank work? Each month we publish how every decile did, whichever way it went. See the record →

P/E (TTM)
29.1x
peers 32.7x
ROE
41.1%
peers 4.7%
D/E
1.7x
peers 0.3x
Dividend %
0.6%
trailing yield
AI CONVICTION THESIS

Paycom sells single-database payroll and HR software to mid-market US employers and recently beat earnings and raised guidance. It runs a modest buyback and insider selling is small. The business earns strong margins and benefits from interest on client funds while rates stay high. However, sector sentiment on HR software has turned, with new competition and AI tools threatening seat-based pricing. Growth has also slowed from its earlier pace, so the valuation case rests on margins more than on reacceleration.

ABOUT PAYCOM SOFTWARE, INC.

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Paycom Software, Inc. offers a proprietary cloud-based human capital management (HCM) software solution that streamlines payroll, HR, talent management, and benefits administration for businesses. Its single-database, single-application platform provides a significant competitive advantage by ensuring data consistency and enhancing user efficiency, leading to high client retention rates. The company focuses on the mid-market segment, driving recurring revenue through its scalable SaaS model.

FINANCIAL SUMMARY (USD)

Year2022202320242025CAGRTTM2026E2027EFwd CAGR
Revenue1.4B1.7B1.9B2.1B14.3%2.1B2.2B2.4B7.6%
EPS4.865.918.938.1318.7%9.4510.6412.2923.0%
Shares57.9M56.5M55.8M54.8M-5.3%45.1M———
Debt29.0M75.9M83.4M90.3M46.0%————
Equity1.2B1.3B1.6B1.7B13.6%————
Op CF365.1M485.0M533.9M678.9M23.0%801.5M———
Inv CF-23.3M-196.7M-22.2M-611.2M—————
Fin CF254.6M-274.6M1.1B1.0B—————
Loading 1Y...
PRICE (1Y) · USD+18.3%
21823224626027515 Sep6 Oct26 Oct
SMA 50SMA 200

Price checkIn an uptrendExperimental

Above its 200-day average and at its 52-week high.

SwingsBumpy

Swung more than 60% of stocks we rank over the past year (48% a year).

How this is worked out

StockRank judges the business. The price check reads only the chart: it is the price side of the Momentum score, in words.

The rules: Still falling is a new 52-week low in the last two weeks, at least 25% below the high. Finding a floor is no new low since. Turning up is 20 or more trading days without a new low, at least 10% off it, and back above a rising 50-day average. In an uptrend is above the 200-day average and within 15% of the high.

In 2,112 US drawdowns since 2001, buying while the price was still falling was followed by a further 20% drop 42% of the time. Waiting for a turn like this one cut that to 33%, at about 7% higher prices and with no better returns. Part of that cut is simply not buying: 13% of falls never turned, and waiting kept those out. Among turns that were bought, 38% still fell another 20%, and 33% of turns were followed by a new low within six months. The benefit was largest in crashes such as 2008 and 2020.

What it measures: day-to-day price moves over the past year, as a yearly figure, ranked against every stock we cover. Very calm under 20% a year, Calm 20 to 30%, Average 30 to 40%, Bumpy 40 to 55%, Very bumpy above that.

What we found: across about 13,500 stocks in 34 markets (2002 to 2025), past swings were a good guide to the next year's, and bumpier stocks fell further. How much further changed too much between eras to put a number on it.

Calm is not safe: a calm stock can still slide steadily.

Rules fixed before any data was fetched. Describes the chart, not a recommendation.

Close
$268.25
RSI (14)
86.0
52-Week Range-2.5% from high
Low $104.16High $275.22

SCORE BREAKDOWN

Quality
65
ROIC
31.4%93.1
ROE
41.1%94.4
GP/Assets
24.8%58.8
Op. Margin
31.7%92.9
FCF/Assets
7.5%69.6
Piotroski
659.3
Int. Cover
43.0x68.2
D/E Ratio
1.72x5.2
Current Ratio
1.07x13.0
Value
43
P/E (TTM)
29.1x52.2
EV/EBITDA
17.6x52.6
P/FCF
21.7x61.1
P/B
20.9x4.5
P/S
5.8x31.1
Div Yield
0.6%30.2
Momentum
79
52W High %
97%99.5
RS 6M
111%97.5
SMA 50/200
1.44x97.0
EPS Rev 4W
+0.1%67.2
EPS Rev 12W
+13.5%86.1
EPS Improve
+48%38.7
Q Growth
20%41.5

FUNDAMENTALS

Market Cap
$12.4B
P/E (Forward)
19.7x
Gross Margin
88.1%

SECTOR PEERS

Closest peers in Technology, ranked by industry match, size, and score similarity. Cross-listings of PAYC are excluded.

TickerCompanyMkt CapStockRankSignal
PAYCPaycom Software, Inc.(you)$12.4B87Strong Buy
PCTYPaylocity Holding Corporation$9.2B91Strong Buy
DOCUDocuSign, Inc.$9.3B92Strong Buy
PTCPTC Inc.$21.1B87Strong Buy
MANHManhattan Associates, Inc.$13.9B79Buy
SSNCSS&C Technologies Holdings, Inc.$19.5B80Buy
APPFAppFolio, Inc.$7.5B80Buy
BSYBentley Systems, Incorporated$12.0B70Buy
RNGRingCentral, Inc.$7.0B96Strong Buy
DAVEDave Inc.$4.5B89Strong Buy

Peer medians: ROE 4.7% · P/E 32.7x · Gross margin 52.1%

Company Deep Dive

Business segments breakdown, earnings transcript analysis, management credibility scoring, competitive landscape, and scenario modelling.

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Paycom Software, Inc. (PAYC): Stock Score Summary

Paycom Software, Inc. (PAYC) has a MoatMap StockRank of 87/100 based on Quality (65/100), Value (43/100), and Momentum (79/100) factor scores. The current signal is STRONG BUY. Paycom sells single-database payroll and HR software to mid-market US employers and recently beat earnings and raised guidance. It runs a modest buyback and insider selling is small. The business earns strong margins and benefits from interest on client funds while rates stay high. However, sector sentiment on HR software has turned, with new competition and AI tools threatening seat-based pricing. Growth has also slowed from its earlier pace, so the valuation case rests on margins more than on reacceleration.

Paycom Software, Inc. offers a proprietary cloud-based human capital management (HCM) software solution that streamlines payroll, HR, talent management, and benefits administration for businesses. Its single-database, single-application platform provides a significant competitive advantage by ensuring data consistency and enhancing user efficiency, leading to high client retention rates. The company focuses on the mid-market segment, driving recurring revenue through its scalable SaaS model.

Key Financial Metrics

Price$268.25
Market Cap$12.4B
P/E (TTM)29.06
P/E (Forward)19.66
Price/Book20.90
Return on Equity41.1%
Return on Invested Capital31.4%
Debt/Equity1.72x
Gross Margin88.1%
Operating Margin31.7%
Revenue Growth9.8%
Dividend Yield0.6%
Free Cash Flow$571M

Paycom Software, Inc. operates in the Software - Application industry, part of the Technology sector (United States).

Frequently Asked Questions

What is Paycom Software, Inc.’s (PAYC) StockRank?
MoatMap’s StockRank for Paycom Software, Inc. (PAYC) is 87/100, with a Strong Buy signal. It is a composite of Quality (65), Value (43), and Momentum (79), each scored against its sector. The composite is then ranked across MoatMap’s universe of 24,000+ stocks.
Does Paycom Software, Inc. have an economic moat?
Paycom Software, Inc. (PAYC) has a Quality factor score of 65/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage: the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Paycom Software, Inc. a buy, hold, or sell?
MoatMap’s current signal for Paycom Software, Inc. (PAYC) is Strong Buy, based on a StockRank of 87/100. Signals are derived mechanically from the StockRank composite and should be one input among many; combine with your own thesis on management, competitive position, and valuation.
What sector is Paycom Software, Inc. in?
Paycom Software, Inc. (PAYC) operates in the Technology sector, specifically the Software - Application industry (United States).