PAYCOM SOFTWARE INC (PAYC) Stock Fundamental Analysis

NYSE:PAYC • US70432V1026

125.31 USD
+5.55 (+4.63%)
At close: Feb 13, 2026
123 USD
-2.31 (-1.84%)
After Hours: 2/13/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

PAYC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 89 industry peers in the Professional Services industry. PAYC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. PAYC has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • PAYC had positive earnings in the past year.
  • In the past year PAYC had a positive cash flow from operations.
  • PAYC had positive earnings in 4 of the past 5 years.
  • PAYC had a positive operating cash flow in 4 of the past 5 years.
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 200M 400M 600M

1.2 Ratios

  • PAYC's Return On Assets of 10.67% is amongst the best of the industry. PAYC outperforms 84.27% of its industry peers.
  • PAYC's Return On Equity of 26.51% is amongst the best of the industry. PAYC outperforms 82.02% of its industry peers.
  • PAYC has a Return On Invested Capital of 19.27%. This is amongst the best in the industry. PAYC outperforms 89.89% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for PAYC is significantly above the industry average of 12.01%.
Industry RankSector Rank
ROA 10.67%
ROE 26.51%
ROIC 19.27%
ROA(3y)7.97%
ROA(5y)7.1%
ROE(3y)27.27%
ROE(5y)25.12%
ROIC(3y)21.04%
ROIC(5y)18.84%
PAYC Yearly ROA, ROE, ROICPAYC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

1.3 Margins

  • With an excellent Profit Margin value of 22.64%, PAYC belongs to the best of the industry, outperforming 93.26% of the companies in the same industry.
  • PAYC's Profit Margin has improved in the last couple of years.
  • PAYC has a Operating Margin of 27.91%. This is amongst the best in the industry. PAYC outperforms 96.63% of its industry peers.
  • In the last couple of years the Operating Margin of PAYC has grown nicely.
  • PAYC has a better Gross Margin (82.95%) than 94.38% of its industry peers.
  • In the last couple of years the Gross Margin of PAYC has remained more or less at the same level.
Industry RankSector Rank
OM 27.91%
PM (TTM) 22.64%
GM 82.95%
OM growth 3Y11.92%
OM growth 5Y1.9%
PM growth 3Y12.81%
PM growth 5Y1.73%
GM growth 3Y-0.97%
GM growth 5Y-0.69%
PAYC Yearly Profit, Operating, Gross MarginsPAYC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. Health

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.
  • 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 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 1B 2B 3B 4B 5B

2.2 Solvency

  • PAYC has an Altman-Z score of 3.31. This indicates that PAYC is financially healthy and has little risk of bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.31, PAYC is doing good in the industry, outperforming 69.66% of the companies in the same industry.
  • 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.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 3.31
ROIC/WACC2.21
WACC8.73%
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 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 1.22 indicates that PAYC should not have too much problems paying its short term obligations.
  • PAYC has a Current ratio (1.22) which is comparable to the rest of the industry.
  • A Quick Ratio of 1.22 indicates that PAYC should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.22, PAYC is in line with its industry, outperforming 40.45% of the companies in the same industry.
  • PAYC does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.22
Quick Ratio 1.22
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 1B 2B 3B 4B

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

4

3. Growth

3.1 Past

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

3.2 Future

  • The Earnings Per Share is expected to grow by 12.93% on average over the next years. This is quite good.
  • PAYC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.05% yearly.
EPS Next Y10.6%
EPS Next 2Y11.13%
EPS Next 3Y14.35%
EPS Next 5Y12.93%
Revenue Next Year8.66%
Revenue Next 2Y8.88%
Revenue Next 3Y6.85%
Revenue Next 5Y7.05%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 13.55 indicates a correct valuation of PAYC.
  • Based on the Price/Earnings ratio, PAYC is valued a bit cheaper than the industry average as 74.16% of the companies are valued more expensively.
  • PAYC is valuated cheaply when we compare the Price/Earnings ratio to 27.97, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 12.25, PAYC is valued correctly.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of PAYC indicates a somewhat cheap valuation: PAYC is cheaper than 73.03% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 27.96. PAYC is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 13.55
Fwd PE 12.25
PAYC Price Earnings VS Forward Price EarningsPAYC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, PAYC is valued a bit cheaper than the industry average as 78.65% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of PAYC indicates a somewhat cheap valuation: PAYC is cheaper than 70.79% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 17.64
EV/EBITDA 8.55
PAYC Per share dataPAYC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of PAYC may justify a higher PE ratio.
  • A more expensive valuation may be justified as PAYC's earnings are expected to grow with 14.35% in the coming years.
PEG (NY)1.28
PEG (5Y)0.63
EPS Next 2Y11.13%
EPS Next 3Y14.35%

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

3

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.25%, PAYC has a reasonable but not impressive dividend return.
  • In the last 3 months the price of PAYC has falen by -24.57%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • PAYC's Dividend Yield is a higher than the industry average which is at 1.53.
  • Compared to the average S&P500 Dividend Yield of 1.79, PAYC is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.25%

5.2 History

  • PAYC has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
PAYC Yearly Dividends per sharePAYC Yearly Dividends per shareYearly Dividends per share 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

  • 18.80% of the earnings are spent on dividend by PAYC. This is a low number and sustainable payout ratio.
DP18.8%
EPS Next 2Y11.13%
EPS Next 3Y14.35%
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 100M 200M 300M 400M 500M
PAYC Dividend Payout.PAYC Dividend Payout, showing the Payout Ratio.PAYC Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

PAYCOM SOFTWARE INC

NYSE:PAYC (2/13/2026, 8:04:00 PM)

After market: 123 -2.31 (-1.84%)

125.31

+5.55 (+4.63%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)02-11
Earnings (Next)05-05
Inst Owners95.05%
Inst Owner Change-0.18%
Ins Owners5.42%
Ins Owner Change-0.04%
Market Cap6.88B
Revenue(TTM)N/A
Net Income(TTM)453.17M
Analysts72.14
Price Target202.09 (61.27%)
Short Float %6.31%
Short Ratio3.57
Dividend
Industry RankSector Rank
Dividend Yield 1.25%
Yearly Dividend1.51
Dividend Growth(5Y)N/A
DP18.8%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.38%
Min EPS beat(2)-2.45%
Max EPS beat(2)13.21%
EPS beat(4)3
Avg EPS beat(4)8.36%
Min EPS beat(4)-2.45%
Max EPS beat(4)15.6%
EPS beat(8)6
Avg EPS beat(8)5.55%
EPS beat(12)9
Avg EPS beat(12)5.7%
EPS beat(16)13
Avg EPS beat(16)5.7%
Revenue beat(2)1
Avg Revenue beat(2)-0.73%
Min Revenue beat(2)-1.9%
Max Revenue beat(2)0.45%
Revenue beat(4)2
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-1.9%
Max Revenue beat(4)0.69%
Revenue beat(8)3
Avg Revenue beat(8)-0.61%
Revenue beat(12)3
Avg Revenue beat(12)-0.87%
Revenue beat(16)7
Avg Revenue beat(16)-0.47%
PT rev (1m)-5.26%
PT rev (3m)-19.42%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-0.6%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
Industry RankSector Rank
PE 13.55
Fwd PE 12.25
P/S 3.44
P/FCF 17.64
P/OCF 10.7
P/B 4.03
P/tB 4.26
EV/EBITDA 8.55
EPS(TTM)9.25
EY7.38%
EPS(NY)10.23
Fwd EY8.16%
FCF(TTM)7.1
FCFY5.67%
OCF(TTM)11.71
OCFY9.35%
SpS36.45
BVpS31.13
TBVpS29.44
PEG (NY)1.28
PEG (5Y)0.63
Graham Number80.49
Profitability
Industry RankSector Rank
ROA 10.67%
ROE 26.51%
ROCE 25.78%
ROIC 19.27%
ROICexc 23.3%
ROICexgc 24.57%
OM 27.91%
PM (TTM) 22.64%
GM 82.95%
FCFM 19.49%
ROA(3y)7.97%
ROA(5y)7.1%
ROE(3y)27.27%
ROE(5y)25.12%
ROIC(3y)21.04%
ROIC(5y)18.84%
ROICexc(3y)26.79%
ROICexc(5y)23.85%
ROICexgc(3y)29.01%
ROICexgc(5y)25.99%
ROCE(3y)28.15%
ROCE(5y)25.21%
ROICexgc growth 3Y12.94%
ROICexgc growth 5Y1.1%
ROICexc growth 3Y15.14%
ROICexc growth 5Y1.63%
OM growth 3Y11.92%
OM growth 5Y1.9%
PM growth 3Y12.81%
PM growth 5Y1.73%
GM growth 3Y-0.97%
GM growth 5Y-0.69%
F-Score7
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 151.91%
Cap/Sales 12.65%
Interest Coverage 250
Cash Conversion 88.7%
Profit Quality 86.07%
Current Ratio 1.22
Quick Ratio 1.22
Altman-Z 3.31
F-Score7
WACC8.73%
ROIC/WACC2.21
Cap/Depr(3y)151.85%
Cap/Depr(5y)163.91%
Cap/Sales(3y)10.68%
Cap/Sales(5y)11.04%
Profit Quality(3y)77.58%
Profit Quality(5y)84.82%
High Growth Momentum
Growth
EPS 1Y (TTM)12.8%
EPS 3Y14.51%
EPS 5Y21.52%
EPS Q2Q%5.6%
EPS Next Y10.6%
EPS Next 2Y11.13%
EPS Next 3Y14.35%
EPS Next 5Y12.93%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%10.23%
Revenue Next Year8.66%
Revenue Next 2Y8.88%
Revenue Next 3Y6.85%
Revenue Next 5Y7.05%
EBIT growth 1Y-5.75%
EBIT growth 3Y35.74%
EBIT growth 5Y22.9%
EBIT Next Year49.05%
EBIT Next 3Y22.1%
EBIT Next 5Y15.68%
FCF growth 1Y30.62%
FCF growth 3Y20.33%
FCF growth 5Y20.7%
OCF growth 1Y34.25%
OCF growth 3Y18.68%
OCF growth 5Y18.94%

PAYCOM SOFTWARE INC / PAYC 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 6 / 10 to PAYCOM SOFTWARE INC (PAYC). This can be considered as Fairly Valued.


How profitable is PAYCOM SOFTWARE INC (PAYC) stock?

PAYCOM SOFTWARE INC (PAYC) has a profitability rating of 8 / 10.


What are the PE and PB ratios of PAYCOM SOFTWARE INC (PAYC) stock?

The Price/Earnings (PE) ratio for PAYCOM SOFTWARE INC (PAYC) is 13.55 and the Price/Book (PB) ratio is 4.03.


How sustainable is the dividend of PAYCOM SOFTWARE INC (PAYC) stock?

The dividend rating of PAYCOM SOFTWARE INC (PAYC) is 3 / 10 and the dividend payout ratio is 18.8%.