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PAYC

BUYFLAG

Paycom Software, Inc. · Technology · United States · $6.8B · Avg Vol: $146M/d

79
StockRank
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Q
66
V
54
M
53
P/E (TTM)
17.1x
ROE
37.1%
D/E
0.9x
Dividend %
1.0%
AI CONVICTION THESIS

Paycom Software has strong quality Q66 and value V58 with a buyback, but momentum at M48 is below the calibrated floor, and insiders sold, so stage one fails.

COMPANY DESCRIPTION

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%2.1B2.2B2.3B6.9%
EPS4.865.918.938.1318.7%8.749.6010.8015.3%
Shares57.9M56.5M55.8M54.8M-5.3%46.6M
Debt29.0M75.9M83.4M90.3M46.0%
Equity1.2B1.3B1.6B1.7B13.6%
Op CF365.1M485.0M533.9M678.9M23.0%710.2M
Inv CF-23.3M-196.7M-22.2M-611.2M
Fin CF254.6M-274.6M1.1B1.0B
Loading 1Y...
PRICE (1Y)+12.5%
124131137144151Jun 12Jul 7Jul 27
SMA 50SMA 200
Close
$151.30
RSI (14)
57.3
52W High
$246.63
From 52W High
0.6%

SCORE BREAKDOWN

Quality
66
ROIC
27.9%93.9
ROE
37.1%94.6
GP/Assets
24.1%60.3
Op. Margin
36.8%95.7
FCF/Assets
3.9%54.8
Piotroski
659.2
Int. Cover
50.0x84.6
D/E Ratio
0.94x14.0
Current Ratio
1.08x13.7
Value
54
P/E (TTM)
17.1x74.2
EV/EBITDA
11.3x68.0
P/FCF
23.0x56.4
P/B
8.4x15.4
P/S
3.3x46.7
Div Yield
1.0%38.6
Momentum
53
52W High %
61%51.8
RS 6M
-8%59.6
SMA 50/200
0.94x34.0
EPS Rev 4W
+0.0%80.5
EPS Rev 12W
+5.6%73.5
EPS Improve
+41%32.9
Q Growth
12%43.4

FUNDAMENTALS

Market Cap
$6.8B
P/E (Forward)
12.2x
Gross Margin
87.6%

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)$6.8B79BUY
PCTYPaylocity Holding Corporation$6.7B82STRONG BUY
IDCCInterDigital, Inc.$6.7B75BUY
YOUClear Secure, Inc.$7.0B83STRONG BUY
DOCU.MXDocuSign, Inc.$8.5B75BUY
LYFT.MXLyft, Inc.$5.5B71BUY
PTRNPattern Group Inc.$4.4B75BUY
MANHManhattan Associates, Inc.$9.0B69BUY
APPFAppFolio, Inc.$5.8B66BUY
CHYMChime Financial, Inc.$7.9B64HOLD

Peer medians: ROE 7.5% · P/E 37.2x · Gross margin 53.1%

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

Paycom Software, Inc. (PAYC) has a MoatMap StockRank of 79/100 based on Quality (66/100), Value (54/100), and Momentum (53/100) factor scores. The current signal is BUY. Paycom Software has strong quality Q66 and value V58 with a buyback, but momentum at M48 is below the calibrated floor, and insiders sold, so stage one fails.

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$151.30
Market Cap$6.8B
P/E (TTM)17.13
P/E (Forward)12.17
Price/Book8.40
Return on Equity37.1%
Return on Invested Capital27.9%
Debt/Equity0.94x
Gross Margin87.6%
Operating Margin36.8%
Revenue Growth7.8%
Dividend Yield1.0%
Free Cash Flow$295M

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 79/100, with a Buy signal. It is a composite of Quality (66), Value (54), and Momentum (53) factor ranks across MoatMap’s 20,000+ stock universe.
Does Paycom Software, Inc. have an economic moat?
Paycom Software, Inc. (PAYC) has a Quality factor score of 66/100. 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 Buy, based on a StockRank of 79/100. 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).