Stock AnalizPaycom Software, Inc. PAYC
Computer Software: Prepackaged Software · IPO 2014 · data as of November 13, 2026
Paycom Software, Inc. (PAYC) is a technology company listed in the US with a market value of about $11.2B. In the twelve months to September 30, 2026 it had revenue of $2.2B and net income of $510M, a net margin of 23.3%.
Its overall Stock Analiz score is 4.0 out of 5 (excellent). The strongest part is track record (5/5); the weakest is future growth (3/5).
Key numbers: a P/E of 23.9, a price to free cash flow of 17.0, 5-year revenue growth of 20% a year, a 5-year average ROIC of 24%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 13% below the current price.
Score: 4.0 / 5
Checks passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- PEG below 1.5
- 3-year revenue growth above 10% a year
- 3-year free cash flow growth above 10% a year
- Strong R&D investment or growth above 20%
- 5-year EPS growth above 10% a year
Checks not passed
- Price below intrinsic value (DCF, moderate assumptions)
- Revenue growth above 10% last year
- Profit margin improving
- Liabilities below 60% of assets
- Stock-based pay below 5% of revenue
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $2.2B | $2.1B | $1.9B | $1.7B | $1.4B | $1.1B | $841M | $738M | $566M | $433M | $329M |
| Net income | $510M | $453M | $502M | $341M | $281M | $196M | $143M | $181M | $137M | $123M | $70M |
| Free cash flow | $659M | $408M | $341M | $292M | $232M | $199M | $133M | $131M | $125M | $71M | $55M |
| EPS (diluted) | $10.43 | $8.08 | $8.92 | $5.88 | $4.84 | $3.37 | $2.46 | $3.09 | $2.34 | $2.10 | $1.19 |
| Net margin | 23.3% | 22.1% | 26.7% | 20.1% | 20.5% | 18.6% | 17.1% | 24.5% | 24.2% | 28.5% | 21.4% |
| ROIC | — | 22.8% | 29.6% | 23.6% | 21.8% | 20.3% | 20.1% | 30.7% | 36.9% | 39.6% | 30.1% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 16 analysts is $271.00, 9% above the current price; targets range from $200.00 to $331.00; the consensus rating is “Hold”; expected EPS is $13.07 for the fiscal year ending December 31, 2026.
Frequently asked questions
What is Paycom Software’s P/E ratio?
About 23.9, based on the last twelve months of diluted earnings per share (forward P/E about 16.1).
Is Paycom Software stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 13% below the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Paycom Software pay a dividend?
Yes. The dividend yield is about 0.62%, and it has paid dividends for 3 years in our data.
Is Paycom Software a good stock to buy?
We do not give buy or sell advice. Paycom Software scores 4.0 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
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Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.