# Paycom Software Inc. (PAYC) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Technology / Software. Price $231.67, market value $10.4 billion.

## Valuation
- **P/E (trailing): 24.5×** (5-yr avg 51.9×, 3-yr avg 25.6×). Paycom Software Inc. trades at 24.5× trailing earnings, well below its own five-year average of 51.9×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 16.6×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 4.9×**. Each dollar of revenue is priced at 4.9×.
- **Price / book: 17.6×**. The shares trade at 17.6× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 12.0×**. Enterprise value is 12.0× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 5.5%** (5-yr avg 2.4%). Free cash flow equals 5.5% of the market value, above its five-year average of 2.4%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 4.1%**. The inverse of the P/E: 4.1% of the price is earned each year.

## Profitability
- **Gross margin: 83.7%**. Paycom Software Inc. keeps 83.7% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 30.3%**. 30.3% of revenue is left after running the business, an exceptional level.
- **Net margin: 22.1%**. 22.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 26.2%**. 26.2% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 36.8%**. Return on all capital, debt included, is 36.8%: comfortably above what that capital costs.
- **Return on assets: 6.4%**. Each dollar of assets produces 6.4% of profit.

## Growth
- **Revenue growth (1 yr): 8.9%** (3-yr 14.3%/yr, 5-yr 19.5%/yr). Revenue grew 8.9% over the last year, against 19.5% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -9.4%** (3-yr 18.6%/yr, 5-yr 26.9%/yr). Earnings per share fell 9.4%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 20.6%/yr**. Free cash flow has compounded at 20.6% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.02**. Debt is 0.02 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Paycom Software Inc. holds more cash than debt.
- **Current ratio: 1.09** (quick 1.09). Current assets cover the next year's liabilities 1.09 times.
- **Altman Z-score: 1.98**. A Z-score of 1.98 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.65%** ($1.50 per share, trailing). Paycom Software Inc. yields 0.65%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 19%** (13% of free cash flow). 19% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 3**. 3 straight years of increases.

## Price and momentum
- **Total return (1 yr): 4.0%** (YTD 46.2%, 3-mo 68.3%). The shares are up 4.0% over twelve months including dividends.
- **From 52-week high: -5.4%** (120.8% above the low). Trading 5% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 66**. An RSI of 66 is neutral.
- **Beta (1 yr): 0.16** (volatility 47%). Beta of 0.16 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=PAYC · Page: https://foliofundamentals.com/stocks/payc

Not investment advice.