Paycom Software, Inc. (PAYC) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Paycom Software, Inc. Do?
Paycom Software, Inc. provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. It offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company's HCM solution provides a suite of applications in the areas of talent acquisition, including applicant tracking, candidate tracker, background checks, on-boarding, e-verify, and tax credit services; and time and labor management, such as time and attendance, scheduling/schedule exchange, time-off requests, labor allocation, labor management reports/push reporting, and geofencing/geotracking, and Microfence, a proprietary Bluetooth. Its HCM solution also offers payroll applications comprising better employee transaction interface, payroll and tax management, Paycom pay, expense management, mileage tracker/fixed and variable rates, garnishment management, and GL concierge applications; and talent management applications that include employee self-service, compensation budgeting, performance management, position management, and Paycom learning and content subscriptions, as well as my analytics, which offer employment predictor reporting. In addition, its HCM solution provides manager on-the-go that gives supervisors and managers the ability to perform a variety of tasks, such as approving time-off requests and expense reimbursements; direct data exchange; ask here, a tool for direct line of communication to ask work-related questions; document and checklist; government and compliance; benefits administration/benefits to carrier; COBRA administration; personnel action and performance discussion forms; surveys; and affordable care act applications, as well as Clue, which securely collect, track, and manage the vaccination and testing data of the workforce. Paycom Software, Inc. was founded in 1998 and is headquartered in Oklahoma City, Oklahoma. Paycom Software, Inc. (PAYC) is classified as a mid-cap stock in the Technology sector, specifically within the Computer Software industry. The company is led by CEO Chad R. Richison and employs approximately 7,306 people. With a market capitalization of $6.4B, PAYC is one of the notable companies in the Technology sector.
Paycom Software, Inc. (PAYC) Stock Rating — Reduce (April 2026)
As of April 2026, Paycom Software, Inc. receives a Reduce rating with a composite score of 41.0/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.PAYC ranks #3,210 out of 4,446 stocks in our coverage universe. Within the Technology sector, Paycom Software, Inc. ranks #374 of 584 stocks, placing it in the lower half of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
PAYC Stock Price and 52-Week Range
Paycom Software, Inc. (PAYC) currently trades at $113.59. The stock lost $1.25 (1.1%) in the most recent trading session. The 52-week high for PAYC is $267.76, which means the stock is currently trading -57.6% from its annual peak. The 52-week low is $104.90, putting the stock 8.3% above its annual trough. Recent trading volume was 1.0M shares, reflecting moderate market activity.
Is PAYC Overvalued or Undervalued? — Valuation Analysis
Paycom Software, Inc. (PAYC) carries a value factor score of 71/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 15.99x, compared to the Technology sector average of 45.27x — a discount of 65%. The price-to-book ratio stands at 3.81x, versus the sector average of 3.16x. The price-to-sales ratio is 3.37x, compared to 1.06x for the average Technology stock. On an enterprise value basis, PAYC trades at 10.94x EV/EBITDA, versus 12.79x for the sector.
Based on these multiples, Paycom Software, Inc. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
Paycom Software, Inc. Profitability — ROE, Margins, and Quality Score
Paycom Software, Inc. (PAYC) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 23.8%, compared to the Technology sector average of -1.4%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 5.4% versus the sector average of -1.0%.
On a margin basis, Paycom Software, Inc. reports gross margins of 82.3%, compared to 50.9% for the sector. The operating margin is 26.0% (sector: -0.5%). Net profit margin stands at 20.9%, versus -1.5% for the average Technology stock. Revenue growth is running at 12.8% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
PAYC Debt, Balance Sheet, and Financial Health
Paycom Software, Inc. has a debt-to-equity ratio of 339.0%, compared to the Technology sector average of 43.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.09x, suggesting adequate working capital coverage. Total debt on the balance sheet is $0. Cash and equivalents stand at $375M.
PAYC has a beta of 0.93, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for Paycom Software, Inc. is 57/100, reflecting average volatility within the normal range for its sector.
Paycom Software, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Paycom Software, Inc. reported revenue of $1.96B and earnings per share (EPS) of $8.13. Net income for the quarter was $413M. Gross margin was 82.3%. Operating income came in at $515M.
In FY 2025, Paycom Software, Inc. reported revenue of $2.05B and earnings per share (EPS) of $8.13. Net income for the quarter was $453M. Gross margin was 83.2%. Revenue grew 8.9% year-over-year compared to FY 2024. Operating income came in at $567M.
In Q3 2025, Paycom Software, Inc. reported revenue of $493M and earnings per share (EPS) of $1.97. Net income for the quarter was $111M. Gross margin was 82.7%. Revenue grew 9.2% year-over-year compared to Q3 2024. Operating income came in at $113M.
In Q2 2025, Paycom Software, Inc. reported revenue of $484M and earnings per share (EPS) of $1.59. Net income for the quarter was $90M. Gross margin was 81.9%. Revenue grew 10.5% year-over-year compared to Q2 2024. Operating income came in at $112M.
Over the past 8 quarters, Paycom Software, Inc. has demonstrated a growth trajectory, with revenue expanding from $438M to $1.96B. Investors analyzing PAYC stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
PAYC Dividend Yield and Income Analysis
Paycom Software, Inc. (PAYC) currently pays a dividend yield of 0.7%. At this yield, a $10,000 investment in PAYC stock would generate approximately $$72.00 in annual dividend income. With a net margin of 20.9%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
PAYC Momentum and Technical Analysis Profile
Paycom Software, Inc. (PAYC) has a momentum factor score of 18/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 28/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 24/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
PAYC vs Competitors — Technology Sector Ranking and Peer Comparison
Within the Technology sector, Paycom Software, Inc. (PAYC) ranks #374 out of 584 stocks based on the Blank Capital composite score. This places PAYC in the lower half of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.
Comparing PAYC against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full PAYC vs S&P 500 (SPY) comparison to assess how Paycom Software, Inc. stacks up against the broader market across all factor dimensions.
PAYC Next Earnings Date
No upcoming earnings date has been announced for Paycom Software, Inc. (PAYC) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy PAYC? — Investment Thesis Summary
The quantitative profile for Paycom Software, Inc. suggests caution. The value score of 71/100 suggests attractive pricing relative to fundamentals. Momentum is weak at 18/100, a headwind for near-term performance.
In summary, Paycom Software, Inc. (PAYC) earns a Reduce rating with a composite score of 41.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on PAYC stock.
Related Resources for PAYC Investors
Explore more research and tools: PAYC vs S&P 500 comparison, top Technology stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare PAYC head-to-head with peers: PAYC vs IHS, PAYC vs VRSN, PAYC vs ESE.