Paycom is a cloud-based human capital management provider offering payroll, compliance, and human resources management solutions. The firm's solutions are available on a unified, modular platform, and customers are billed for access on a subscription basis.
It is a $10.5B technology company. Revenue grew 9.2% over the last year, it keeps 23¢ of every dollar of sales as profit, and its net debt equals ~0.2 years of free cash flow. It trades at 21.1× earnings — in the cheapest third of its own history.
- Website
- paycom.com
- Location
- Oklahoma City, OK
- Employees
- 5 770
- Sector
- Technology
- Founded
- 1998
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong valuation, growth, profitability, health, quality and moat.
Valuation85
- P/E vs own history18th pct · 25/25
- FCF yield5.5% · 20/25
- P/S4.8x · 20/25
- EV/EBITDA13.8x · 20/25
Growth90
- Revenue CAGR18.1% · 20/25
- Net income CAGR23.3% · 25/25
- EPS CAGR ~5Y26.8% · 25/25
- Fwd implied growth26.1% · 20/25
Profitability95
- ROIC24.5% · 20/25
- ROE40.4% · 25/25
- Net margin22.8% · 25/25
- Operating margin32.4% · 25/25
Health75
- Altman Z2.48 · 18/25
- Current ratio1.07 · 12/25
- Interest coverage183.2x · 25/25
- Net cash / debtD/A 2% · 20/25
Quality80
- Piotroski F5/9 · 15/25
- Beneish M-2.42 · 20/25
- FCF conversion118% · 25/25
- Margin stabilityσ 7.8% · 20/25
Moat100
- ROIC >12% years10/10 yrs · 25/25
- Median gross margin84.3% · 25/25
- FCF-positive years10/10 yrs · 25/25
- Worst-year net marginworst 13.3% · 25/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- 2025ProductPaycom launched IWant™, a command-driven AI engine allowing users to seek information about employee…
- FY2024FinancialBest year on record$502M net income
- FY2021FinancialRevenue crossed $1B$1.06B for the year
- FY2016FinancialProfitable every year on record10 consecutive profitable years in our data
- FY2016FinancialPositive free cash flow every year since10-year streak
- 2011ProductIt released additional services including E-Verify, onboarding, expense management
- 1998FoundedPaycom was founded in 1998 by Chad Richison, who previously worked in the payroll processing industry
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (83.7%)
- Strongly profitable — 22.8% net margin
- Strong cash conversion — FCF is 26.9% of revenue
- Could repay net debt from ~1.4 years of free cash flow
- Interest covered 183.2× by operating earnings
Watch-outs
Nothing stands out as a concern in the available data.
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+9.2% YoY
- Profitable — makes more than it spends$488M TTM
- Profit growing — earnings are higher than last year+18.7% YoY
- Generates cash — cash left after running and investing$575M TTM
- Debt under control — could handle its obligations~0.2y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$10.5B market cap
- Not printing shares — share count not ballooning — you keep your slice-3.7% shares over ~5y
- Proven track record — years of profitability behind it10/10 profitable years
- Financially stable — balance sheet not near distressAltman Z 2.5 — grey
- Pays a dividend — returns cash to shareholdersyield 0.75%
- Valuation not extreme — price not wildly above earningsP/E 21.1
Peer comparisonPaycom Software, Inc. vs 6 largest technology peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| PAYC this company | $10.5B | 21.1 | +9.2% | 22.8% | Solid |
| NVDA Nvidia Corp | $5.5T | 28.6 | +83.4% | 63.7% | Mixed |
| AAPL Apple Inc. | $4.9T | 38.1 | +14.2% | 27.6% | Strong |
| GOOGL Alphabet Inc. | $4.3T | 17.6 | +20.1% | 54.8% | Mixed |
| MSFT Microsoft Corp | $4.0T | 29.7 | +17.8% | 40.3% | Strong |
| SPCX Space Exploration Technologies Corp. | $2.1T | — | +33.2% | -34.0% | Strained |
| META Meta Platforms, Inc. | $1.8T | 26.9 | +27.7% | 29.8% | Mixed |
Head-to-head: PAYC vs NVDA · PAYC vs AAPL · PAYC vs GOOGL
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/PAYC
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of PAYC on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $232.22 · market cap $10.5B.