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PAYC

Strong BuyPremium GrowerFLAG

Paycom Software, Inc. · Technology · United States · $10.8B · Avg Vol: $188M/d

89
StockRank
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Q
66
V
46
M
77
P/E (TTM)
24.5x
ROE
41.1%
D/E
1.7x
Dividend %
0.6%
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%2.1B2.2B2.4B7.5%
EPS4.865.918.938.1318.7%9.4510.6412.2722.9%
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)+30.2%
162181201221241Jul 29Aug 19Sep 9
SMA 50SMA 200

Close
$219.94
RSI (14)
48.0
52W High
$244.98
From 52W High
0.9%

SCORE BREAKDOWN

Quality
66
ROIC
31.4%94.7
ROE
41.1%95.3
GP/Assets
24.8%59.1
Op. Margin
31.7%93.9
FCF/Assets
7.5%71.6
Piotroski
661.1
Int. Cover
43.0x68.6
D/E Ratio
1.72x5.5
Current Ratio
1.07x13.1
Value
46
P/E (TTM)
24.5x56.2
EV/EBITDA
15.0x56.4
P/FCF
18.8x67.0
P/B
17.6x5.2
P/S
4.9x33.8
Div Yield
0.6%27.3
Momentum
77
52W High %
90%90.6
RS 6M
54%88.9
SMA 50/200
1.24x87.4
EPS Rev 4W
+13.7%91.6
EPS Rev 12W
+13.4%85.8
EPS Improve
+48%39.5
Q Growth
20%42.9

FUNDAMENTALS

Market Cap
$10.8B
P/E (Forward)
16.6x
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)$10.8B89Strong Buy
PCTYPaylocity Holding Corporation$8.7B90Strong Buy
DOCUDocuSign, Inc.$9.3B85Strong Buy
CHYMChime Financial, Inc.$12.6B74Buy
MANHManhattan Associates, Inc.$13.0B74Buy
DAVEDave Inc.$4.8B86Strong Buy
RNGRingCentral, Inc.$5.8B97Strong Buy
APPFAppFolio, Inc.$8.3B72Buy
FRSHFreshworks Inc.$3.6B88Strong Buy
YOUClear Secure, Inc.$5.9B77Buy

Peer medians: ROE 4.6% · P/E 35.3x · Gross margin 51.1%

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

Paycom Software, Inc. (PAYC) has a MoatMap StockRank of 89/100 based on Quality (66/100), Value (46/100), and Momentum (77/100) factor scores. The current signal is STRONG 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$219.94
Market Cap$10.8B
P/E (TTM)24.52
P/E (Forward)16.61
Price/Book17.63
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 89/100, with a Strong Buy signal. It is a composite of Quality (66), Value (46), and Momentum (77) factor ranks across MoatMap’s universe of 25,000+ stocks.
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 Strong Buy, based on a StockRank of 89/100. 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).