A Business at a Glance
0 of 5 daily views used (5 remaining). Sign up free for 10 daily views, or try AAPL for a full preview.
We are a leading provider of a comprehensive, cloud-based HCM solution delivered as Software-as-a-Service (“SaaS”). We provide functionality and data analytics that businesses need to manage the complete employment lifecycle, from recruitment to retirement. Our solution requires virtually no customization and is based on a core system of record maintained in a single database for all HCM functions, including payroll, talent acquisition, talent management, human resources (“HR”) management and time and labor management applications. Our user-friendly software allows for easy adoption of our solution by employees, enabling self-management of their HCM activities in the cloud, which reduces the administrative burden on employers and increases employee productivity. We were founded in 1998 and became a publicly traded company through our initial public offering in 2014. Since our founding, we have focused on providing an innovative SaaS HCM solution.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 2.1B | 2.1B | 1.9B | 1.7B | 1.4B | 1.1B |
| Net Income | 453M | 453M | 502M | 341M | 281M | 196M |
| EPS | $8.08 | $8.08 | $8.92 | $5.88 | $4.84 | $3.37 |
| Free Cash Flow | 408M | 408M | 341M | 292M | 232M | 199M |
| ROIC | 28.6% | 44.8% | 57.4% | 39.7% | 66.7% | 52.7% |
| Gross Margin | 83.2% | 83.2% | 82.2% | 96.9% | 96.9% | 97.0% |
| Debt/Equity | 0.05 | 0.05 | 0.05 | 0.08 | 0.02 | 0.03 |
| Dividends/Share | $1.51 | $0.38 | $0.38 | $0.38 | - | - |
| Operating Income | 567M | 567M | 634M | 451M | 379M | 254M |
| Operating Margin | 27.6% | 27.6% | 33.7% | 26.6% | 27.5% | 24.0% |
| ROE | 26.2% | 27.4% | 31.9% | 26.2% | 23.8% | 21.9% |
| Shares Outstanding | 56M | 56M | 56M | 58M | 58M | 58M |
Paycom Software, Inc. passes 9 of 9 quality checks, indicating strong fundamentals.
Paycom Software, Inc. trades at 14.8x trailing earnings, compared to its 15-year median P/E of 44.2x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 15.9x vs a median of 48.6x. The company's 5-year average ROIC is 52.2% with a gross margin of 91.2%. Total shareholder yield (dividends + buybacks) is 6.1%. At current prices, the estimated annualized return to fair value is +21.9%.
Paycom Software, Inc. (PAYC) has a current P/E ratio of 14.8, compared to its historical median P/E of 44.2. The stock is currently considered Cheap based on its historical valuation range.
Paycom Software, Inc. (PAYC) has a 5-year average return on invested capital (ROIC) of 52.2%. This indicates strong capital allocation and a potential competitive advantage.
Paycom Software, Inc. (PAYC) has a market capitalization of $6.7B. It is classified as a mid-cap stock.
Yes, Paycom Software, Inc. (PAYC) pays a dividend with a trailing twelve-month yield of 1.26%. The company also returns capital through share buybacks, with a buyback yield of 4.85%.
Based on historical P/E analysis, Paycom Software, Inc. (PAYC) appears cheap. The current P/E of 14.8 is 67% below its historical median of 44.2. The estimated fair value CAGR (P/E method) is 22.7%.
Paycom Software, Inc. (PAYC) operates in the Services-Prepackaged Software industry, within the Technology sector.
Paycom Software, Inc. (PAYC) reported annual revenue of $2.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
Paycom Software, Inc. (PAYC) has a net profit margin of 22.1%. This is a strong margin indicating high profitability.
Paycom Software, Inc. (PAYC) generated $408 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Paycom Software, Inc. (PAYC) has a debt-to-equity ratio of 0.05. This indicates a conservatively financed balance sheet.
Paycom Software, Inc. (PAYC) reported earnings per share (EPS) of $8.08 in its most recent fiscal year.
Paycom Software, Inc. (PAYC) has a return on equity (ROE) of 27.4%. This indicates the company generates strong returns for shareholders.
Paycom Software, Inc. (PAYC) has a 5-year average gross margin of 91.2%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 14 years of financial data for Paycom Software, Inc. (PAYC), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Paycom Software, Inc. (PAYC) has a book value per share of $30.86, based on its most recent annual SEC filing.