PAYC
Paycom Software, Inc.

Paycom Software, Inc.PAYC

Technology · Software - Application
225.79USD
+2.17%
Oct 06, 2026
PAYC overview ready
Paycom is a direct, U.S.-focused HCM software provider whose unified platform handles payroll, tax administration, HR, talent, time-related and employee self-service workflows for small and midsize employers.
Narrative is still early
Exposed to the Enterprise Workflow Automation narrative through Unified HCM and Payroll Automation — pure play.
Advancing price action
Longer-term context reads early trend, with a near-term setup of daily advance.
Attractive valuation
Current market expectations look undemanding relative to the level and quality of its cash generation.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Competition from larger HCM and payroll software providers.
Market Oct 5Filing Jun 30Price action Oct 5Research Oct 3

Conviction Level

NarrativeHeat8.0ThemeHeat6.1PriceAction9.4Valuation9.9CompanyPosition9.3
Price
Loading price history…

Price Action

Advancing price action
Longer-term context reads early trend, with a near-term setup of daily advance.
EntryBreakout + retest

Price broke through the weekly SMA200, then retested it constructively and recovered — a fresh structural entry rather than a chase.

Key Financials

Market Cap
$10.2B
Avg Volume (60D)
804.9K
60 sessions
Revenue Growth YoY
+8.9%
FY2025 vs FY2024
Gross Margin
+83.7%
Trailing twelve months
Operating Margin
+30.3%
Trailing twelve months
Free Cash Flow Yield
+5.7%
Distance from 200DMA
+46.0%
Next Earnings
2026-11-04
P/E
20.9x
EV / EBITDA
12.9x
EV / Sales
5.1x
Market metrics as of Oct 5, 2026
Financial results for the period ended Jun 30, 2026
Filed balance-sheet data as of Jun 30, 2026

Fundamentals & Valuation

The available comparisons disagreed; the intrinsic comparison is the more reliable method for this business and the others are published as dissent.
Paycom Software, Inc. has a Cheap valuation stance because current market expectations look undemanding relative to the level and quality of its cash generation.

Company Research

Thesis
Paycom is a direct, U.S.-focused HCM software provider whose unified platform handles payroll, tax administration, HR, talent, time-related and employee self-service workflows for small and midsize employers.
Opportunity
Moderate opportunity
Employers consolidate payroll, HR, workforce administration, compliance and talent workflows onto integrated cloud platforms to reduce manual work, improve data consistency and automate routine decisions.
Key risk
Competition from larger HCM and payroll software providers.

Narrative & Theme

Enterprise Workflow Automation
Part of Unified HCM and Payroll Automation, with moderate fit.
PAYC has a genuine, direct fit to unified cloud HCM and payroll automation, a multi-company enterprise-software demand system distinct from every promoted narrative in the active context.
Narrative HeatHeating up8.0 / 10
Theme HeatNeutral6.1 / 10
This is the company’s own research reading. The canonical heat measurement for this story has not run.

Business & Markets

Technology · Software - Application
What they do

Paycom Software, Inc. provides a cloud-based human capital management (HCM) software-as-a-service platform that helps small to mid-sized U.S. Companies manage the entire employment lifecycle from recruitment to retirement.

How it earns

The company generates revenue primarily through subscription fees for its SaaS HCM platform.

Products & services
Payroll applications
Payroll tax management
Payroll card
Expense management
Garnishment administration
Talent acquisition and management
Customers & end markets
Small to mid-sized companies
U.S. businesses
Market position

Paycom is a leader in the U.S. Cloud-based HCM software market targeting small to mid-sized businesses.

Demand drivers
Medium cyclicality

Business demand is somewhat sensitive to economic cycles affecting employment and payroll volumes.