PAYCOM SOFTWARE INC (PAYC) Fundamental Analysis & Valuation

NYSE:PAYC • US70432V1026

Current stock price

117.06 USD
-5.97 (-4.85%)
At close:
117.06 USD
0 (0%)
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

  • In the past year PAYC was profitable.
  • PAYC had a positive operating cash flow in the past year.
  • In the past 5 years PAYC has always been profitable.
  • In the past 5 years PAYC always reported a positive cash flow from operatings.
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

  • The Return On Assets of PAYC (5.97%) is better than 64.37% of its industry peers.
  • PAYC has a better Return On Equity (26.19%) than 81.61% of its industry peers.
  • With an excellent Return On Invested Capital value of 19.14%, PAYC belongs to the best of the industry, outperforming 83.91% 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 12.57%.
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 93.10% of its industry peers.
  • PAYC's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 27.64%, PAYC belongs to the top of the industry, outperforming 95.40% of the companies in the same industry.
  • PAYC's Operating Margin has improved in the last couple of years.
  • PAYC has a better Gross Margin (83.17%) than 93.10% 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

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PAYC is creating value.
  • The number of shares outstanding for PAYC has been reduced compared to 1 year ago.
  • The number of shares outstanding for PAYC has been reduced compared to 5 years ago.
  • PAYC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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 1.64. This is a bad value and indicates that PAYC is not financially healthy and even has some risk of bankruptcy.
  • PAYC has a Altman-Z score (1.64) which is in line with its industry peers.
  • 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 1.64
ROIC/WACC2.11
WACC9.08%
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

  • PAYC has a Current 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.
  • The Current ratio of PAYC (1.09) is worse than 68.97% of its industry peers.
  • A Quick Ratio of 1.09 indicates that PAYC should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.09, PAYC is not doing good in the industry: 70.11% of the companies in the same industry are doing better.
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.
  • PAYC shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.52% yearly.
  • PAYC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.95%.
  • 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

  • The Earnings Per Share is expected to grow by 7.45% on average over the next years.
  • PAYC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.26% yearly.
EPS Next Y12.84%
EPS Next 2Y11.68%
EPS Next 3Y10.65%
EPS Next 5Y7.45%
Revenue Next Year6.74%
Revenue Next 2Y7.07%
Revenue Next 3Y7.2%
Revenue Next 5Y5.26%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 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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6

4. PAYC Valuation Analysis

4.1 Price/Earnings Ratio

  • PAYC is valuated correctly with a Price/Earnings ratio of 12.66.
  • Based on the Price/Earnings ratio, PAYC is valued a bit cheaper than 68.97% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 24.88. PAYC is valued slightly cheaper when compared to this.
  • With a Price/Forward Earnings ratio of 11.21, the valuation of PAYC can be described as very reasonable.
  • PAYC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PAYC is cheaper than 73.56% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of PAYC to the average of the S&P500 Index (22.19), we can say PAYC is valued slightly cheaper.
Industry RankSector Rank
PE 12.66
Fwd PE 11.21
PAYC Price Earnings VS Forward Price EarningsPAYC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, PAYC is valued a bit cheaper than the industry average as 74.71% of the companies are valued more expensively.
  • 65.52% of the companies in the same industry are more expensive than PAYC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 15.42
EV/EBITDA 7.87
PAYC Per share dataPAYC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • PAYC's 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)0.99
PEG (5Y)0.59
EPS Next 2Y11.68%
EPS Next 3Y10.65%

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3

5. PAYC Dividend Analysis

5.1 Amount

  • PAYC has a Yearly Dividend Yield of 1.22%.
  • In the last 3 months the price of PAYC has falen by -27.02%. 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 1.81.
  • PAYC's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.22%

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 2026 0.5 1 1.5

5.3 Sustainability

  • 18.70% of the earnings are spent on dividend by PAYC. This is a low number and sustainable payout ratio.
DP18.7%
EPS Next 2Y11.68%
EPS Next 3Y10.65%
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 (3/27/2026, 8:04:00 PM)

After market: 117.06 0 (0%)

117.06

-5.97 (-4.85%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)02-11
Earnings (Next)05-05
Inst Owners98.25%
Inst Owner Change-0.41%
Ins Owners5.87%
Ins Owner Change1.03%
Market Cap6.22B
Revenue(TTM)2.05B
Net Income(TTM)453.40M
Analysts72.14
Price Target161.87 (38.28%)
Short Float %9.07%
Short Ratio2.4
Dividend
Industry RankSector Rank
Dividend Yield 1.22%
Yearly Dividend1.53
Dividend Growth(5Y)N/A
DP18.7%
Div Incr Years1
Div Non Decr Years1
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)1.2%
PT rev (3m)-24.11%
EPS NQ rev (1m)0.75%
EPS NQ rev (3m)0.03%
EPS NY rev (1m)2.02%
EPS NY rev (3m)1.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.09%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-1.89%
Valuation
Industry RankSector Rank
PE 12.66
Fwd PE 11.21
P/S 3.03
P/FCF 15.42
P/OCF 9.17
P/B 3.59
P/tB 3.79
EV/EBITDA 7.87
EPS(TTM)9.25
EY7.9%
EPS(NY)10.44
Fwd EY8.92%
FCF(TTM)7.59
FCFY6.48%
OCF(TTM)12.77
OCFY10.91%
SpS38.59
BVpS32.57
TBVpS30.89
PEG (NY)0.99
PEG (5Y)0.59
Graham Number82.33
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 1.64
F-Score6
WACC9.08%
ROIC/WACC2.11
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 Y12.84%
EPS Next 2Y11.68%
EPS Next 3Y10.65%
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 2Y7.07%
Revenue Next 3Y7.2%
Revenue Next 5Y5.26%
EBIT growth 1Y-10.6%
EBIT growth 3Y14.41%
EBIT growth 5Y24.97%
EBIT Next Year40.68%
EBIT Next 3Y18.92%
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 6 / 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 12.66 and the Price/Book (PB) ratio is 3.59.


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 18.7%.