PAYCOM SOFTWARE INC (PAYC) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:PAYC • US70432V1026

130.94 USD
+1.1 (+0.85%)
Last: Feb 5, 2026, 03:31 PM
Fundamental Rating

8

Taking everything into account, PAYC scores 8 out of 10 in our fundamental rating. PAYC was compared to 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. This makes PAYC very considerable for quality investing!


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • In the past year PAYC was profitable.
  • In the past year PAYC had a positive cash flow from operations.
  • In the past 5 years PAYC has always 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 200M 400M 600M

1.2 Ratios

  • The Return On Assets of PAYC (10.67%) is better than 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.
  • The Return On Invested Capital of PAYC (19.27%) is better than 91.01% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for PAYC is significantly above the industry average of 12.00%.
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

  • PAYC has a better Profit Margin (22.64%) than 92.13% of its industry peers.
  • In the last couple of years the Profit Margin of PAYC has grown nicely.
  • The Operating Margin of PAYC (27.91%) is better than 95.51% 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

9

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PAYC is creating value.
  • PAYC has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for PAYC has been reduced compared to 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 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

  • An Altman-Z score of 3.44 indicates that PAYC is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 3.44, PAYC is doing good in the industry, outperforming 68.54% 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 3.44
ROIC/WACC2.16
WACC8.92%
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.
  • Looking at the Current ratio, with a value of 1.22, PAYC is in line with its industry, outperforming 40.45% of the companies in the same industry.
  • A Quick Ratio of 1.22 indicates that PAYC should not have too much problems paying its short term obligations.
  • PAYC has a Quick ratio of 1.22. This is comparable to the rest of the industry: PAYC outperforms 40.45% of its industry peers.
  • 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

6

3. Growth

3.1 Past

  • PAYC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.77%, which is quite good.
  • Measured over the past years, PAYC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.56% on average per year.
  • PAYC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.72%.
  • PAYC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.62% yearly.
EPS 1Y (TTM)16.77%
EPS 3Y22.42%
EPS 5Y18.56%
EPS Q2Q%16.17%
Revenue 1Y (TTM)9.72%
Revenue growth 3Y21.29%
Revenue growth 5Y20.62%
Sales Q2Q%9.15%

3.2 Future

  • PAYC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.97% yearly.
  • The Revenue is expected to grow by 7.12% on average over the next years.
EPS Next Y15.29%
EPS Next 2Y11.85%
EPS Next 3Y11.9%
EPS Next 5Y12.97%
Revenue Next Year9.59%
Revenue Next 2Y9.15%
Revenue Next 3Y9.22%
Revenue Next 5Y7.12%

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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
PAYC Yearly Revenue VS EstimatesPAYC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 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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6

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 14.36 indicates a correct valuation of PAYC.
  • Based on the Price/Earnings ratio, PAYC is valued a bit cheaper than 75.28% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 28.25, PAYC is valued a bit cheaper.
  • The Price/Forward Earnings ratio is 12.76, which indicates a correct valuation of PAYC.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of PAYC indicates a somewhat cheap valuation: PAYC is cheaper than 74.16% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of PAYC to the average of the S&P500 Index (27.50), we can say PAYC is valued rather cheaply.
Industry RankSector Rank
PE 14.36
Fwd PE 12.76
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 79.78% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, PAYC is valued a bit cheaper than the industry average as 69.66% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 18.43
EV/EBITDA 9.31
PAYC Per share dataPAYC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

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.
  • The excellent profitability rating of PAYC may justify a higher PE ratio.
PEG (NY)0.94
PEG (5Y)0.77
EPS Next 2Y11.85%
EPS Next 3Y11.9%

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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 1.12%, PAYC has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 1.45, PAYC pays a bit more dividend than its industry peers.
  • PAYC's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.12%

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 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

  • PAYC pays out 18.80% of its income as dividend. This is a sustainable payout ratio.
DP18.8%
EPS Next 2Y11.85%
EPS Next 3Y11.9%
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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PAYCOM SOFTWARE INC

NYSE:PAYC (2/5/2026, 3:31:45 PM)

130.94

+1.1 (+0.85%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)11-05
Earnings (Next)02-11
Inst Owners95.05%
Inst Owner Change-0.52%
Ins Owners5.42%
Ins Owner Change-0.04%
Market Cap7.19B
Revenue(TTM)2.00B
Net Income(TTM)453.17M
Analysts72.14
Price Target208.39 (59.15%)
Short Float %6.31%
Short Ratio3.57
Dividend
Industry RankSector Rank
Dividend Yield 1.12%
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)-2.31%
PT rev (3m)-16.91%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-1.27%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
Industry RankSector Rank
PE 14.36
Fwd PE 12.76
P/S 3.59
P/FCF 18.43
P/OCF 11.18
P/B 4.21
P/tB 4.45
EV/EBITDA 9.31
EPS(TTM)9.12
EY6.97%
EPS(NY)10.26
Fwd EY7.83%
FCF(TTM)7.1
FCFY5.42%
OCF(TTM)11.71
OCFY8.95%
SpS36.45
BVpS31.13
TBVpS29.44
PEG (NY)0.94
PEG (5Y)0.77
Graham Number79.93
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 3.44
F-Score7
WACC8.92%
ROIC/WACC2.16
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)16.77%
EPS 3Y22.42%
EPS 5Y18.56%
EPS Q2Q%16.17%
EPS Next Y15.29%
EPS Next 2Y11.85%
EPS Next 3Y11.9%
EPS Next 5Y12.97%
Revenue 1Y (TTM)9.72%
Revenue growth 3Y21.29%
Revenue growth 5Y20.62%
Sales Q2Q%9.15%
Revenue Next Year9.59%
Revenue Next 2Y9.15%
Revenue Next 3Y9.22%
Revenue Next 5Y7.12%
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 8 / 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 9 / 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 14.36 and the Price/Book (PB) ratio is 4.21.


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%.