Paycom Software, Inc. PAYC
Composite 60/100; the shares have moved about 55% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Income ranks 39/100 — a slight mark against it.
Quality ranks 79/100 — a strong point in its favour. Momentum ranks 73/100 — a moderate point in its favour. Balance-sheet strength ranks 57/100 — a slight point in its favour.
Income ranks 39/100 — a slight mark against it. Valuation ranks 41/100 — a slight mark against it. Growth ranks 50/100 — a slight mark against it.
What the company does Paycom Software provides a single, cloud-based HCM suite for U.S. SMBs spanning payroll, talent acquisition, time and labor, and analytics delivered as SaaS. Its integrated platform replaces multiple point solutions with one interface and real-time data.
Key financials PAYC posts strong returns: ROE 37.1%, ROA 7.9%, ROCE 32.9%. Margins are robust: gross 87.6%, operating 36.8%, net 22.4%. Revenue grew 7.8% and EPS 22.6% year-over-year.
Stock health Momentum is mixed: +28.95% over 3m, +22.00% over 6m, but -30.15% over 12m and -33.90% below the 52-week high; RSI(14) is 64.80. Quality pillar scores 80.6/100, but momentum is weaker at 42.9/100.
Price vs fair value The stock trades at a PREMIUM of 7.06% versus the 12-month analyst target of 151.50 and at a discount of 7.00% versus our fair-value estimate of 174.43. - Analysts expect Q2 results to drive near-term sentiment (Zacks). - Recent sector rotation lifted PAYC alongside Asana and Bentley Systems (StockStory). - A contrarian sell call argues fundamentals are stretched relative to peers (StockStory). - Comparative value pieces pit PAYC against PLTR, keeping attention on valuation multiples (Zacks).
Looking forward Forward P/E of 13.39 and PEG of 0.52 suggest undemanding pricing if growth persists. The company’s integrated HCM model and high retention underpin steady cash flows, but execution risks remain tied to macro hiring trends and competitive pricing pressure.
This is not investment advice. Sideravia provides automated, data-driven analysis for information and education only. Nothing on this page is a personal recommendation or an invitation to buy or sell any security, and it does not consider your objectives or financial situation. Assessments are generated by rules applied uniformly to every covered stock — how our scores work.
Data as of 2026-09-04, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.