PAYCOM SOFTWARE INC (PAYC) Fundamental Analysis & Valuation

NYSE:PAYC • US70432V1026

Current stock price

119.84 USD
+0.23 (+0.19%)
At close:
120.34 USD
+0.5 (+0.42%)
After Hours:

This PAYC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. PAYC Profitability Analysis

1.1 Basic Checks

  • PAYC had positive earnings in the past year.
  • In the past year PAYC had a positive cash flow from operations.
  • Each year in the past 5 years PAYC has been profitable.
  • Each year in the past 5 years PAYC had a positive operating cash flow.
PAYC Yearly Net Income VS EBIT VS OCF VS FCFPAYC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 5.97%, PAYC is in the better half of the industry, outperforming 65.12% of the companies in the same industry.
  • With an excellent Return On Equity value of 26.19%, PAYC belongs to the best of the industry, outperforming 81.40% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 19.14%, PAYC belongs to the top of the industry, outperforming 83.72% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for PAYC is significantly above the industry average of 13.03%.
Industry RankSector Rank
ROA 5.97%
ROE 26.19%
ROIC 19.14%
ROA(3y)7.55%
ROA(5y)7.19%
ROE(3y)28.06%
ROE(5y)25.98%
ROIC(3y)21.34%
ROIC(5y)19.66%
PAYC Yearly ROA, ROE, ROICPAYC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

1.3 Margins

  • PAYC has a better Profit Margin (22.10%) than 93.02% of its industry peers.
  • PAYC's Profit Margin has improved in the last couple of years.
  • PAYC's Operating Margin of 27.64% is amongst the best of the industry. PAYC outperforms 93.02% of its industry peers.
  • PAYC's Operating Margin has improved in the last couple of years.
  • PAYC's Gross Margin of 83.17% is amongst the best of the industry. PAYC outperforms 94.19% of its industry peers.
  • PAYC's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 27.64%
PM (TTM) 22.1%
GM 83.17%
OM growth 3Y0.13%
OM growth 5Y4.56%
PM growth 3Y2.6%
PM growth 5Y5.32%
GM growth 3Y-0.54%
GM growth 5Y-0.51%
PAYC Yearly Profit, Operating, Gross MarginsPAYC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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6

2. PAYC Health Analysis

2.1 Basic Checks

  • PAYC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • The number of shares outstanding for PAYC has been reduced compared to 1 year ago.
  • PAYC has less shares outstanding than it did 5 years ago.
  • There is no outstanding debt for PAYC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
PAYC Yearly Shares OutstandingPAYC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
PAYC Yearly Total Debt VS Total AssetsPAYC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.2 Solvency

  • PAYC has an Altman-Z score of 1.59. This is a bad value and indicates that PAYC is not financially healthy and even has some risk of bankruptcy.
  • Looking at the Altman-Z score, with a value of 1.59, PAYC is doing worse than 60.47% of the companies in the same industry.
  • PAYC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 1.59
ROIC/WACC2.14
WACC8.94%
PAYC Yearly LT Debt VS Equity VS FCFPAYC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 1.09 indicates that PAYC should not have too much problems paying its short term obligations.
  • PAYC's Current ratio of 1.09 is on the low side compared to the rest of the industry. PAYC is outperformed by 70.93% of its industry peers.
  • PAYC has a Quick Ratio of 1.09. This is a normal value and indicates that PAYC is financially healthy and should not expect problems in meeting its short term obligations.
  • PAYC has a Quick ratio of 1.09. This is in the lower half of the industry: PAYC underperforms 72.09% of its industry peers.
Industry RankSector Rank
Current Ratio 1.09
Quick Ratio 1.09
PAYC Yearly Current Assets VS Current LiabilitesPAYC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. PAYC Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 12.80% over the past year.
  • The Earnings Per Share has been growing by 21.52% on average over the past years. This is a very strong growth
  • The Revenue has grown by 8.95% in the past year. This is quite good.
  • Measured over the past years, PAYC shows a quite strong growth in Revenue. The Revenue has been growing by 19.51% on average per year.
EPS 1Y (TTM)12.8%
EPS 3Y14.51%
EPS 5Y21.52%
EPS Q2Q%5.6%
Revenue 1Y (TTM)8.95%
Revenue growth 3Y14.27%
Revenue growth 5Y19.51%
Sales Q2Q%10.23%

3.2 Future

  • Based on estimates for the next years, PAYC will show a small growth in Earnings Per Share. The EPS will grow by 7.45% on average per year.
  • Based on estimates for the next years, PAYC will show a small growth in Revenue. The Revenue will grow by 5.26% on average per year.
EPS Next Y14.66%
EPS Next 2Y12.77%
EPS Next 3Y11.66%
EPS Next 5Y7.45%
Revenue Next Year6.74%
Revenue Next 2Y7.09%
Revenue Next 3Y7.2%
Revenue Next 5Y5.26%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
PAYC Yearly Revenue VS EstimatesPAYC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 1B 2B 3B
PAYC Yearly EPS VS EstimatesPAYC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 5 10 15

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7

4. PAYC Valuation Analysis

4.1 Price/Earnings Ratio

  • PAYC is valuated correctly with a Price/Earnings ratio of 12.96.
  • Based on the Price/Earnings ratio, PAYC is valued a bit cheaper than 72.09% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of PAYC to the average of the S&P500 Index (27.33), we can say PAYC is valued rather cheaply.
  • A Price/Forward Earnings ratio of 11.30 indicates a reasonable valuation of PAYC.
  • 74.42% of the companies in the same industry are more expensive than PAYC, based on the Price/Forward Earnings ratio.
  • When comparing the Price/Forward Earnings ratio of PAYC to the average of the S&P500 Index (38.16), we can say PAYC is valued rather cheaply.
Industry RankSector Rank
PE 12.96
Fwd PE 11.3
PAYC Price Earnings VS Forward Price EarningsPAYC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, PAYC is valued cheaply inside the industry as 86.05% of the companies are valued more expensively.
  • PAYC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PAYC is cheaper than 66.28% of the companies in the same industry.
Industry RankSector Rank
P/FCF 14.14
EV/EBITDA 7.18
PAYC Per share dataPAYC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • PAYC has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.88
PEG (5Y)0.6
EPS Next 2Y12.77%
EPS Next 3Y11.66%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. PAYC Dividend Analysis

5.1 Amount

  • PAYC has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
  • PAYC's Dividend Yield is a higher than the industry average which is at 1.89.
  • Compared to the average S&P500 Dividend Yield of 1.82, PAYC is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.31%

5.2 History

  • PAYC has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
PAYC Yearly Dividends per sharePAYC Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • PAYC pays out 18.70% of its income as dividend. This is a sustainable payout ratio.
DP18.7%
EPS Next 2Y12.77%
EPS Next 3Y11.66%
PAYC Yearly Income VS Free CF VS DividendPAYC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
PAYC Dividend Payout.PAYC Dividend Payout, showing the Payout Ratio.PAYC Dividend Payout.PayoutRetained Earnings

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PAYC Fundamentals: All Metrics, Ratios and Statistics

PAYCOM SOFTWARE INC

NYSE:PAYC (4/14/2026, 8:04:00 PM)

After market: 120.34 +0.5 (+0.42%)

119.84

+0.23 (+0.19%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)02-11
Earnings (Next)05-05
Inst Owners98.52%
Inst Owner Change-0.05%
Ins Owners5.65%
Ins Owner Change1.03%
Market Cap5.71B
Revenue(TTM)2.05B
Net Income(TTM)453.40M
Analysts72.14
Price Target162.57 (35.66%)
Short Float %13.1%
Short Ratio2.53
Dividend
Industry RankSector Rank
Dividend Yield 1.31%
Yearly Dividend1.53
Dividend Growth(5Y)N/A
DP18.7%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-09
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.92%
Min EPS beat(2)-2.45%
Max EPS beat(2)-1.4%
EPS beat(4)2
Avg EPS beat(4)4.11%
Min EPS beat(4)-2.45%
Max EPS beat(4)13.21%
EPS beat(8)5
Avg EPS beat(8)4.59%
EPS beat(12)8
Avg EPS beat(12)4.42%
EPS beat(16)12
Avg EPS beat(16)5.58%
Revenue beat(2)0
Avg Revenue beat(2)-1.81%
Min Revenue beat(2)-1.9%
Max Revenue beat(2)-1.73%
Revenue beat(4)1
Avg Revenue beat(4)-1.1%
Min Revenue beat(4)-1.9%
Max Revenue beat(4)0.45%
Revenue beat(8)2
Avg Revenue beat(8)-0.93%
Revenue beat(12)3
Avg Revenue beat(12)-0.94%
Revenue beat(16)6
Avg Revenue beat(16)-0.66%
PT rev (1m)1.63%
PT rev (3m)-23.79%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)1.61%
EPS NY rev (3m)3.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.89%
Valuation
Industry RankSector Rank
PE 12.96
Fwd PE 11.3
P/S 2.78
P/FCF 14.14
P/OCF 8.4
P/B 3.3
P/tB 3.47
EV/EBITDA 7.18
EPS(TTM)9.25
EY7.72%
EPS(NY)10.61
Fwd EY8.85%
FCF(TTM)8.48
FCFY7.07%
OCF(TTM)14.26
OCFY11.9%
SpS43.09
BVpS36.37
TBVpS34.49
PEG (NY)0.88
PEG (5Y)0.6
Graham Number87
Profitability
Industry RankSector Rank
ROA 5.97%
ROE 26.19%
ROCE 25.43%
ROIC 19.14%
ROICexc 22.95%
ROICexgc 24.1%
OM 27.64%
PM (TTM) 22.1%
GM 83.17%
FCFM 19.67%
ROA(3y)7.55%
ROA(5y)7.19%
ROE(3y)28.06%
ROE(5y)25.98%
ROIC(3y)21.34%
ROIC(5y)19.66%
ROICexc(3y)26.18%
ROICexc(5y)24.81%
ROICexgc(3y)27.93%
ROICexgc(5y)26.92%
ROCE(3y)28.35%
ROCE(5y)26.12%
ROICexgc growth 3Y-4.84%
ROICexgc growth 5Y3.38%
ROICexc growth 3Y-3.25%
ROICexc growth 5Y3.88%
OM growth 3Y0.13%
OM growth 5Y4.56%
PM growth 3Y2.6%
PM growth 5Y5.32%
GM growth 3Y-0.54%
GM growth 5Y-0.51%
F-Score6
Asset Turnover0.27
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 156.21%
Cap/Sales 13.42%
Interest Coverage 270.05
Cash Conversion 91.32%
Profit Quality 88.99%
Current Ratio 1.09
Quick Ratio 1.09
Altman-Z 1.59
F-Score6
WACC8.94%
ROIC/WACC2.14
Cap/Depr(3y)154.73%
Cap/Depr(5y)159.91%
Cap/Sales(3y)11.84%
Cap/Sales(5y)11.49%
Profit Quality(3y)80.21%
Profit Quality(5y)84.06%
High Growth Momentum
Growth
EPS 1Y (TTM)12.8%
EPS 3Y14.51%
EPS 5Y21.52%
EPS Q2Q%5.6%
EPS Next Y14.66%
EPS Next 2Y12.77%
EPS Next 3Y11.66%
EPS Next 5Y7.45%
Revenue 1Y (TTM)8.95%
Revenue growth 3Y14.27%
Revenue growth 5Y19.51%
Sales Q2Q%10.23%
Revenue Next Year6.74%
Revenue Next 2Y7.09%
Revenue Next 3Y7.2%
Revenue Next 5Y5.26%
EBIT growth 1Y-10.6%
EBIT growth 3Y14.41%
EBIT growth 5Y24.97%
EBIT Next Year40.58%
EBIT Next 3Y18.75%
EBIT Next 5Y11.35%
FCF growth 1Y19.88%
FCF growth 3Y20.91%
FCF growth 5Y24.83%
OCF growth 1Y27.16%
OCF growth 3Y22.97%
OCF growth 5Y24.47%

PAYCOM SOFTWARE INC / PAYC Fundamental Analysis FAQ

What is the fundamental rating for PAYC stock?

ChartMill assigns a fundamental rating of 7 / 10 to PAYC.


Can you provide the valuation status for PAYCOM SOFTWARE INC?

ChartMill assigns a valuation rating of 7 / 10 to PAYCOM SOFTWARE INC (PAYC). This can be considered as Undervalued.


Can you provide the profitability details for PAYCOM SOFTWARE INC?

PAYCOM SOFTWARE INC (PAYC) has a profitability rating of 9 / 10.


Can you provide the PE and PB ratios for PAYC stock?

The Price/Earnings (PE) ratio for PAYCOM SOFTWARE INC (PAYC) is 12.96 and the Price/Book (PB) ratio is 3.3.


Can you provide the financial health for PAYC stock?

The financial health rating of PAYCOM SOFTWARE INC (PAYC) is 6 / 10.