Paycom Software, Inc.
- Open
- 147.84
- Day high
- 156.13
- Day low
- 147.38
- Prev close
- 145.35
- Volume
- 962K
- Mkt cap
- $7.2B
- P/E (TTM)
- 17.4
- EPS (TTM)
- $8.68
- P/B
- 8.9
- P/S
- 3.4
- Yield
- 0.99%
- Per share
- $1.50
- ▼Insiders net selling -$351K over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions mixed (13F)
Paycom Software, Inc. (PAYC) is a Technology company listed on NYSE. The stock is down 36% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4). Drillr has 1 published research article covering PAYC.
Paycom Software, Inc. (PAYC) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 5 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
PAYC earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 6, 2026 | $2.99 | $3.15 | +5.4% | $572M | +1.3% |
| Feb 11, 2026 | $2.44 | $2.45 | +0.4% | $544M | -3.9% |
| Nov 5, 2025 | $1.95 | $1.94 | -0.5% | $493M | +0.1% |
| May 7, 2025 | $2.57 | $2.80 | +8.9% | $531M | +1.0% |
| Feb 12, 2025 | $1.99 | $2.32 | +16.6% | $494M | +2.6% |
| Oct 30, 2024 | $1.61 | $1.67 | +3.7% | $452M | -6.2% |
| Jul 31, 2024 | $1.58 | $1.62 | +2.5% | $438M | +0.2% |
| May 1, 2024 | $2.43 | $2.59 | +6.6% | $500M | +0.8% |
| Feb 7, 2024 | $1.78 | $1.93 | +8.4% | $435M | +2.8% |
| Oct 31, 2023 | $1.62 | $1.77 | +9.3% | $406M | -1.2% |
| May 2, 2023 | $2.35 | $2.46 | +4.7% | $452M | +1.7% |
| Feb 7, 2023 | $1.49 | $1.73 | +16.1% | $371M | +1.0% |
PAYC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 10, 2026 | Boelte Craig E.director | Grant | 1,353 | — |
| Jul 10, 2026 | KERBER WILLIAM XAVIER IIIdirector | Grant | 1,353 | — |
| May 19, 2026 | Peck Randallofficer: Chief Operating Officer | Sell | 2,500 | $140.50 |
| May 12, 2026 | Peck Randallofficer: Chief Operating Officer | Tax | 336 | $138.44 |
| May 12, 2026 | Hadlock Terrell Shaneofficer: President/Chief Client Officer | Tax | 2,728 | $138.44 |
| May 6, 2026 | PETERS FREDERICK C IIdirector | Grant | 1,890 | — |
| May 6, 2026 | DUQUES HENRY Cdirector | Grant | 1,890 | — |
| May 6, 2026 | BINZ JOSEPH LEOdirector | Grant | 1,890 | — |
| May 6, 2026 | TURNEY SHAREN Jdirector | Grant | 1,890 | — |
| May 6, 2026 | WATTS J C JRdirector | Grant | 1,890 | — |
| Feb 20, 2026 | Peck Randallofficer: Chief Operating Officer | Grant | 9,976 | — |
| Feb 20, 2026 | York Jeffrey D.officer: Chief Sales Officer | Grant | 13,967 | — |
| Feb 20, 2026 | Richison Chad R.director, 10 percent owner, officer: CEO and Chairman | Grant | 71,827 | — |
| Feb 20, 2026 | Hadlock Terrell Shaneofficer: President/Chief Client Officer | Grant | 20,950 | — |
| Feb 20, 2026 | Foster Robert D.officer: Chief Financial Officer | Grant | 17,957 | — |
Source: PAYC SEC Form 4 filings, latest Jul 10, 2026. For informational purposes only — not investment advice.
See the full PAYC insider & 13F page →Paycom Software, Inc. company profile
Overview
Paycom Software, Inc. (NYSE:PAYC) is a cloud-based human capital management software company founded in 1998 and headquartered in Oklahoma City, Oklahoma. The company went public in April 2014 and has grown to become a leading provider of comprehensive HR technology solutions for small to mid-sized businesses across the United States. Paycom serves approximately 37,500 clients with over 6.5 million employee records on its platform, focusing primarily on companies with 50 to 10,000+ employees.
Business
Paycom operates in the human capital management (HCM) software industry, providing cloud-based solutions delivered as software-as-a-service (SaaS) to help businesses manage their entire employee lifecycle from recruitment to retirement. The HCM industry encompasses all aspects of workforce management, including payroll processing, benefits administration, talent acquisition, time tracking, performance management, and compliance reporting. The company's core offering is a comprehensive, single-database HCM platform that integrates multiple HR functions into one unified system. Unlike traditional HR software that requires multiple vendors and disparate systems, Paycom's platform provides all HR capabilities through a single login and database, eliminating data silos and reducing administrative complexity. Key product modules include: 1. Talent Acquisition - applicant tracking, background checks, onboarding, and tax credit services. 2. Time and Labor Management - time tracking, scheduling, time-off requests, labor allocation, and geofencing capabilities through their proprietary Microfence Bluetooth technology. 3. Payroll Applications - comprehensive payroll processing, tax management, expense management, and their flagship Beti solution, which enables employees to do their own payroll. 4. Talent Management - employee self-service, performance management, compensation budgeting, learning management, and analytics. 5. Benefits and Compliance - benefits administration, COBRA management, government compliance, ACA reporting, and their Clue solution for vaccination and testing data management. The company's most innovative product is Beti, an employee self-service payroll solution that allows employees to review and correct their own payroll before submission, virtually eliminating payroll errors. Another key innovation is GONE, a fully automated time-off solution that can automatically approve or deny time-off requests based on predefined business rules, potentially delivering 800% ROI for clients. Revenue is generated almost entirely from recurring sources, with approximately 98% coming from recurring revenue and 2% from interest earned on funds held for clients during payroll processing.
Revenue model
Paycom operates a software-as-a-service (SaaS) subscription model where clients pay recurring monthly or annual fees based on the number of employees on their platform and the modules they utilize. The company charges per employee per month (PEPM), with pricing typically ranging from small businesses paying lower rates to enterprise clients paying premium rates for advanced functionality. The primary revenue streams include: 1. Recurring subscription revenue (98% of total revenue) - monthly/annual fees for platform access and module usage. 2. Interest income (2% of total revenue) - earned on funds held temporarily during payroll processing cycles. 3. Implementation and professional services - one-time fees for system setup and training. Paycom's customers are primarily small to mid-sized businesses ranging from 50 to 10,000+ employees, with growing focus on larger enterprise clients. The company serves businesses across various industries including healthcare, manufacturing, retail, professional services, and hospitality. Decision-makers are typically HR directors, CFOs, and business owners who need to streamline HR operations and ensure compliance. Factors that increase margins include: 1. Economies of scale - as the platform grows, fixed costs are spread across more users. 2. Module expansion - existing clients adopting additional modules increases revenue per client without proportional cost increases. 3. Automation adoption - solutions like Beti and GONE reduce service costs while maintaining pricing. 4. Client retention - high switching costs and integration complexity create sticky relationships. 5. Operational leverage - software scalability allows revenue growth without proportional expense increases. Factors that could pressure margins include: 1. Increased competition - pricing pressure from established players like ADP, Paychex, and newer entrants. 2. Rising labor costs - particularly in sales and customer service roles. 3. Technology investment - continued R&D spending on AI, automation, and international expansion. 4. Regulatory changes - compliance requirements that necessitate system updates and additional features. 5. Economic downturns - potential client losses or downsizing that reduces per-employee revenue.
Competitive moat
Paycom possesses a moderate to strong competitive moat built primarily on switching costs, network effects, and product differentiation. The company's single-database architecture creates significant switching costs for clients, as migrating HR data, training employees, and reconfiguring workflows represents substantial time and expense investments. Once implemented, Paycom becomes deeply embedded in daily operations, making replacement decisions highly disruptive. The company's automation-first approach provides meaningful differentiation in the market. Solutions like Beti (employee self-service payroll) and GONE (automated time-off management) deliver measurable ROI that competitors struggle to match. This technological advantage is reinforced by substantial R&D investments and a culture of innovation that has produced over 20 years of product development expertise. Data network effects strengthen the moat as Paycom accumulates more client data, enabling better analytics, benchmarking, and predictive capabilities. The platform's comprehensive nature also creates cross-selling opportunities and increases client lifetime value, making it economically attractive to retain existing relationships rather than switch providers. However, the moat faces several challenges: 1. Intense competition from well-funded incumbents like ADP and Paychex, as well as newer cloud-native competitors like Workday and BambooHR. 2. Technology disruption - AI and automation advances could commoditize certain features or enable new entrants to leapfrog existing solutions. 3. Market saturation - as the HCM market matures, growth may slow and pricing pressure may increase. 4. Client concentration risk - focus on mid-market segment limits total addressable market compared to enterprise-focused competitors. The moat is strengthened by Paycom's strong brand reputation, high client satisfaction scores, and proven ability to innovate. However, the competitive landscape remains dynamic, requiring continued investment in product development and market expansion to maintain differentiation.
Risks & safety
Paycom demonstrates a strong financial position with solid cash generation and manageable debt levels, though valuation metrics suggest limited margin of safety at current prices. **Cash and Debt Position:** - Cash and short-term investments: $521 million (Q1 2025) - Minimal debt with debt-to-equity ratio of 0.047 - Strong free cash flow generation: $145 million in Q1 2025, $341 million for full year 2024 - No significant solvency risk given strong cash position and recurring revenue model **Valuation Metrics:** - Price-to-earnings ratio: 21.9x (Q1 2025) - EV/EBITDA: 12.8x (Q1 2025) - Price-to-book ratio: 7.1x - Revenue multiple: approximately 8x forward revenue - These metrics suggest the stock trades at a premium to many software peers **Other Considerations:** - High recurring revenue (98% of total) provides predictable cash flows - Strong client retention rates (93% annual revenue retention) support revenue stability - Current ratio of 1.2x indicates adequate short-term liquidity - Growing client base and expanding market presence support long-term growth prospects
Recent development
Over the past few years, Paycom has executed several strategic initiatives focused on automation, international expansion, and moving upmarket. The company's flagship innovation has been the development and rollout of Beti, an employee self-service payroll solution that eliminates payroll errors by allowing employees to review and correct their own payroll before processing. Nearly 50% of Paycom's client base has adopted Beti, which has driven higher client retention and operational efficiency. The company launched GONE, a fully automated time-off management solution that can automatically approve or deny time-off requests based on predefined business rules, potentially delivering 800% ROI for clients. This represents Paycom's continued focus on eliminating manual administrative tasks through automation. International expansion has become a key growth driver, with Paycom now operating in four countries and developing native payroll solutions for Canada, Mexico, Ireland, and the UK. The company received payment institution authorization in Ireland, positioning it for European market expansion. The Global HCM product now supports operations in 180 countries and 15 languages. Paycom has been moving upmarket to target larger enterprise clients, with companies having over 1,000 employees representing 12% year-over-year growth and clients with over 2,000 employees growing 18% annually. The company opened three new sales offices in 2024 (Raleigh, Los Angeles, Providence) and now operates 57 outside sales teams. The company has invested heavily in artificial intelligence and automation, developing internal AI agents that have reduced customer service tickets by 25% and doubled development productivity rates. These AI capabilities may be productized for client use in future platform offerings. Recent financial strategy changes include transitioning to annual guidance rather than quarterly guidance and implementing a quarterly dividend program, reflecting the company's confidence in long-term cash flow generation and market position.
PAYC company profile · for informational purposes only — not investment advice.
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