# PAYCOM SOFTWARE, INC. (PAYC) — Stock CV

Paycom Software, Inc. 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.

> 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.

## Identity

- **Ticker**: PAYC
- **Sector**: Technology
- **Industry**: Services-Prepackaged Software
- **Headquarters**: OKLAHOMA CITY, OK
- **Employees**: 5 770
- **Website**: https://www.paycom.com
- **Market cap**: $10.5B
- **Last price**: $232.22
- **Financial profile**: Solid

## Vitals (TTM)

- **Revenue**: $2.14B
- **Net income**: $488M
- **Free cash flow**: $575M
- **Net debt**: $129M
- **P/E**: 21.1
- **Revenue growth (YoY)**: 9.2%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 85 |
| Growth | 90 |
| Profitability | 95 |
| Health | 75 |
| Quality | 80 |
| Moat | 100 |

## Qualifications (beginner checklist) — 11 of 11 passed

- [x] Revenue growing — +9.2% YoY
- [x] Profitable — $488M TTM
- [x] Profit growing — +18.7% YoY
- [x] Generates cash — $575M TTM
- [x] Debt under control — ~0.2y of cash flow to repay
- [x] Established company — $10.5B market cap
- [x] Not printing shares — -3.7% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [x] Financially stable — Altman Z 2.5 — grey
- [x] Pays a dividend — yield 0.75%
- [x] Valuation not extreme — P/E 21.1

## Experience (career milestones)

- **2025** — Paycom launched IWant™, a command-driven AI engine allowing users to seek information about employee…
- **FY2024** — Best year on record: $502M net income
- **FY2021** — Revenue crossed $1B: $1.06B for the year
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2011** — It released additional services including E-Verify, onboarding, expense management
- **1998** — Paycom was founded in 1998 by Chad Richison, who previously worked in the payroll processing industry

## 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

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $1.06B | $196M | $199M |
| FY2022 | $1.38B | $281M | $232M |
| FY2023 | $1.69B | $341M | $292M |
| FY2024 | $1.88B | $502M | $341M |
| FY2025 | $2.05B | $453M | $408M |

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Source: https://stockcv.com/PAYC — derived from company filings; may be delayed or incomplete. Information, not investment advice.