PAYC

Paycom Software, Inc.

$253.00

+0.54% 2026-10-19

IndustrialsS&P 600

1M 3M 6M 1Y 2Y

PAYCSPY

+7.7%

+11.8%

+69.3%

+91.1%

YTD

+59.9%

+27.3%

Grades vs sector

Momentum

63rd pct in sector

B-

12-1 return: +17.4%
Percentile within its GICS sector across the S&P 1500.

Growth

51st pct in sector

C+

Revenue growth (YoY): +9.8%
Percentile within its GICS sector across the S&P 1500.

Value

43rd pct in sector

Forward E/P: 5.5% · EBITDA/EV: 6.2%
Percentile within its GICS sector across the S&P 1500.

Profitability

94th pct in sector

Profit margin: +22.8% · Return on equity: +41.1%
Percentile within its GICS sector across the S&P 1500.

Revisions

no data

–

EPS estimate change, 30 days (current FY): –
30-day change in analysts' current-year EPS estimate; graded across covered stocks.

Our models

Held by 1 of 3 live models: Momentum Blend.

Momentum Blend

5.4% of the book · Leaders sleeve

Held Momentum Top 15

not ranked (outside this model's universe or screens)

Quality Growth

not ranked (outside this model's universe or screens)

Why it's in Momentum Blend

In the Leaders sleeve: a fast grower breaking out near its highs after an earnings-style gap.

What would knock it out: Exits if it closes below its stop of $205.58; last close $253.00, 23% above it.

Key stats

Market cap$11.4B

P/E (trailing)26.8

P/E (forward)18.1

52-week range104.90 – 256.60

Revenue growth (YoY, latest qtr)+9.8%

Dividend yield0.60%

Analyst consensusHold (17)

Mean price target$222.59 (-12%)

Valuation & fundamentals

Bottom line

Leans undervalued

Model read-out from the numbers below, not advice. Score +1 (DCF counts double).

▲DCF (base case)above the price by 45%

•Forward P/E vs sector18.1x vs median 17.1x

•Piotroski F-score6/9

▲Altman Z3.0 (safe)

▲Net debt / EBITDA0.8x

▼Analyst target-12% (17 analysts)

Discounted cash flow

Bear

$218

-14%

growth 7% · disc. 9.4% · term. 2.0%

Base

$367

+45%

growth 12% · disc. 8.4% · term. 2.5%

Bull

$590

+133%

growth 15% · disc. 7.4% · term. 3.0%

A DCF starts from trailing free cash flow, so it can overstate value if the last 12 months were unusually strong (or weak). Use the bear case or edit the starting cash flow if so.

Reverse DCFfor context, not a signal

Today's price assumes free cash flow grows about 5% a year for 10 years.

Implied

+5%/yr

FCF, last 3 yrs

+21%/yr

FCF, last 5 yrs

+25%/yr

Revenue, last 3 yrs

+14%/yr

Revenue, last 5 yrs

+20%/yr

Same inputs as the DCF above: trailing free cash flow 0.6B, 8.4% discount rate, 2.5% growth after year 10, net debt and today's share count. Actual growth rates are compound annual rates from SEC annual filings through FY2025; "n/a" means too little history or a negative starting year.

Edit assumptions · recalculates instantly

Your value per share–

Free cash flow = operating cash flow − capital spending, trailing 12 months (TTM to 2026-06-30). Growth default: average of 3-year revenue CAGR and latest revenue growth, capped at 30%. Years 6–10 fade linearly to terminal growth. Discount rate = 4.25% risk-free assumption + beta 0.83 × 5% equity premium, kept within 7–13%. Bear: lower growth, +1 pt discount, 2% terminal. Bull: higher growth, −1 pt, 3%.

Multiples vs Industrials

P/E (trailing)

sector median 26.4× · 52nd pct

26.8×
pricier

Forward P/E

sector median 17.1× · 56th pct

18.1×
pricier

EV / EBITDA

sector median 14.8× · 47th pct

14.3×
cheaper

Price / sales

sector median 2.1× · 85th pct

5.3×
pricier

Price / book

sector median 3.5× · 97th pct

20.0×
pricier

FCF yield

sector median 4.5% · 56th pct

5.0%
cheaper

Forward EPS $13.96 vs trailing $9.45 (+48% expected growth). Forward P/E uses analysts' next-12-month estimate.

Backlog (remaining performance obligations)

RPO

$2.0M

as of 2018-09-30

vs a year ago

–

YoY

× TTM revenue

0.00×

coverage

18-03

18-06

18-09

Contracted revenue not yet recognized, from SEC filings (XBRL tag RevenueRemainingPerformanceObligation).

Quality & financial health

Gross margin

83.7%

Operating margin

30.3%

FCF margin

26.9%

Net margin

22.8%

Return on equity

85.3%

Return on invested capital

36.3%

Net debt / EBITDA

0.8×

Current ratio

1.1×

Interest cover

39.8×

Cash conversion (OCF/NI)

1.6×

Piotroski F-score 6/9 · last two fiscal years

✓ Positive net income✓ Positive operating cash flow✗ Return on assets improved✓ Cash flow above net income✓ Long-term debt / assets fell✗ Current ratio improved✓ No share dilution✓ Gross margin improved✗ Asset turnover improved

Altman Z-score 3.0 (safe zone; above 3.0 = safe, below 1.8 = distress). Not meaningful for banks and insurers.

Analysts

Mean target

$223

-12%

Analysts

Hold

Range

$160–$286

low – high

● price · ◆ mean target

Annual history

FY	Revenue	Net income	Free cash flow
2025	$2.1B	$453.4M	$408.0M
2024	$1.9B	$502.0M	$341.0M
2023	$1.7B	$340.8M	$292.4M
2022	$1.4B	$281.4M	$232.4M
2021	$1.1B	$196.0M	$198.7M
2020	$841.4M	$143.5M	$133.1M

From the company's 10-K filings via SEC XBRL. 3-year revenue CAGR +14.3%.

Earnings

Next report: 2026-11-04 · during market · EPS est 2.80

EstimateActual (beat)Actual (miss)

Report	EPS est	Actual	Surprise
2026-08-05	2.38	2.78	+16.8%
2026-05-06	2.99	3.15	+5.4%
2026-02-11	2.45	2.45	+0.1%
2025-11-05	1.97	1.94	-1.6%
2025-08-06	1.78	2.06	+15.6%
2025-05-07	2.56	2.80	+9.4%
2025-02-12	1.97	2.32	+17.7%
2024-10-30	1.61	1.67	+3.7%

Quarterly revenue

Quarter	Revenue	YoY
2026-06-30	$531.2M	+9.8%
2026-03-31	$571.8M	–
2025-12-31	$544.3M	–
2025-09-30	$493.3M	–
2025-06-30	$483.6M	–

Analyst actions

Barclays

2026-10-13 · main

Equal-Weight → Equal-Weight
PT $250

TD Cowen

2026-10-02 · main

Buy → Buy
PT $286

Keybanc

2026-09-21 · main

Overweight → Overweight
PT $280

UBS

2026-09-01 · main

Buy → Buy
PT $285

JP Morgan

2026-08-25 · main

Neutral → Neutral
PT $264

Citigroup

2026-08-07 · main

Neutral → Neutral
PT $194

Recent dividends

2026-08-24: $0.375 · 2026-05-26: $0.375 · 2026-03-09: $0.375 · 2025-11-24: $0.375 · 2025-08-25: $0.375 · 2025-05-27: $0.375 · 2025-03-10: $0.375 · 2024-11-25: $0.375

Insider trades

Hadlock Terrell Shane

President/Chief Client Officer · 2026-08-28

SELL
$57.9K

Hadlock Terrell Shane

President/Chief Client Officer · 2026-08-27

SELL
$388.4K

Hadlock Terrell Shane

President/Chief Client Officer · 2026-08-27

SELL
$223.9K

None

None · None

SELL
–

News

Stock Market Leaders Tend To Flock Together. Here's Where To Find Them.

Investor's Business Daily · Oct 16

Dow Jones Futures: Tesla Flies On Roadster As Investors Question Anthropic Valuation

Investor's Business Daily · Oct 16

Does TD Cowen’s Optimistic PAYC Outlook Reframe Paycom’s Margin Potential Or Just Near‑Term Sentiment?

Simply Wall St. · Oct 15

EY Survey: Cost Per Payroll Error Climbs to $339 Average for Companies

Business Wire · Oct 15

Paycom Software (PAYC) Surge Driven by Accelerating Growth and Margin Expansion

Insider Monkey · Oct 15

Paychex Builds Fortress of Steady Dividend Growth While Stock Struggles

24/7 Wall St. · Oct 15

Paycom Software, Inc. Announces Third Quarter 2026 Earnings Release Date and Conference Call

Business Wire · Oct 14

Paycom Aims Toward Buy Point As Software Stocks Advance

Investor's Business Daily · Oct 13

Stats refreshed 2026-10-19 17:47:04 ET from Yahoo Finance (yfinance). "–" means the data isn't available. Refresh now

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Coteau Systematic StrategiesSystematic equity research and model portfolios.
Coteau Systematic Strategies publishes research, model portfolios and tools. It does not manage money or offer investment advice. Model results are hypothetical. Data: Yahoo Finance (delayed), SEC EDGAR.

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