Tearsheet

Paycom Software (PAYC)


Market Price (12/28/2025): $160.38 | Market Cap: $9.0 Bil
Sector: Industrials | Industry: Human Resource & Employment Services

Paycom Software (PAYC)


Market Price (12/28/2025): $160.38
Market Cap: $9.0 Bil
Sector: Industrials
Industry: Human Resource & Employment Services

Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.


0 Attractive yield
Total YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 6.0%
Weak multi-year price returns
2Y Excs Rtn is -67%, 3Y Excs Rtn is -127%
Key risks
PAYC key risks include [1] intense competition and a potentially saturated market that could pressure growth and pricing power and [2] significant data security vulnerabilities, Show more.
1 Attractive operating margins
Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 28%
  
2 Attractive cash flow generation
CFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 32%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 19%
  
3 Valuation becoming less expensive
P/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -32%
  
4 Low stock price volatility
Vol 12M is 35%
  
5 Megatrend and thematic drivers
Megatrends include Cloud Computing, and Automation & Robotics. Themes include Software as a Service (SaaS), and Process / Warehouse Automation.
  
0 Attractive yield
Total YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 6.0%
1 Attractive operating margins
Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 28%
2 Attractive cash flow generation
CFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 32%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 19%
3 Valuation becoming less expensive
P/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -32%
4 Low stock price volatility
Vol 12M is 35%
5 Megatrend and thematic drivers
Megatrends include Cloud Computing, and Automation & Robotics. Themes include Software as a Service (SaaS), and Process / Warehouse Automation.
6 Weak multi-year price returns
2Y Excs Rtn is -67%, 3Y Excs Rtn is -127%
7 Key risks
PAYC key risks include [1] intense competition and a potentially saturated market that could pressure growth and pricing power and [2] significant data security vulnerabilities, Show more.

Valuation, Metrics & Events

PAYC Stock


Why The Stock Moved


Qualitative Assessment

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Here are the key points explaining the -29.2% stock movement for Paycom Software (PAYC) from approximately August 31, 2025, to December 27, 2025:

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<b>1. Paycom missed adjusted earnings per share (EPS) estimates in its Third Quarter 2025 earnings report.</b> On November 5, 2025, Paycom reported adjusted EPS of $1.94, which fell short of analysts' consensus estimates of $1.96. This disappointed investors despite revenue slightly exceeding expectations.

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<b>2. Investor dissatisfaction with reaffirmed full-year guidance and slowing momentum.</b> Although Paycom reaffirmed its full-year 2025 revenue guidance, this was not enough to satisfy investors, who were reportedly hoping for a stronger outlook. The Q3 results highlighted a slowdown in sales momentum, with billings growth of 9.5% mirroring this trend and suggesting increasing competition.

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<b>3. Concerns regarding product cannibalization and underwhelming AI innovation.</b> Analysts raised concerns about Paycom's automated payroll platform, "Beti," potentially cannibalizing existing customer usage fees, which could reduce revenue. Additionally, the company's "command-driven AI engine" was described as "underwhelming," and Paycom was seen as lacking "meaningful AI innovation" as of October 2025.

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<b>4. Analyst downgrades and negative sentiment from financial research firms.</b> In October 2025, Zacks.com labeled Paycom a "Bear of the Day," citing slowing revenue growth, margin pressure due to increased spending on client retention and competition, and a sluggish hiring environment. This contributed to a bearish outlook on the stock.

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<b>5. Price target adjustments and overall bearish market trend.</b> In December 2025, Citigroup lowered its price target on Paycom stock to $185 from $191, maintaining a "Neutral" rating, which further contributed to selling pressure. By December 27, 2025, Paycom Software Inc's overall moving average trend was described as bearish, indicating a lack of positive momentum.

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Stock Movement Drivers

Fundamental Drivers

The -26.1% change in PAYC stock from 9/27/2025 to 12/27/2025 was primarily driven by a -32.2% change in the company's P/E Multiple.
927202512272025Change
Stock Price ($)217.01160.41-26.08%
Change Contribution ByLTMLTM
Total Revenues ($ Mil)1959.902001.302.11%
Net Income Margin (%)21.22%22.65%6.74%
P/E Multiple29.2919.86-32.20%
Shares Outstanding (Mil)56.1256.100.03%
Cumulative Contribution-26.08%

LTM = Last Twelve Months as of date shown

Market Drivers

9/27/2025 to 12/27/2025
ReturnCorrelation
PAYC-26.1% 
Market (SPY)4.3%24.3%
Sector (XLI)3.0%21.8%

Fundamental Drivers

The -29.1% change in PAYC stock from 6/28/2025 to 12/27/2025 was primarily driven by a -38.2% change in the company's P/E Multiple.
628202512272025Change
Stock Price ($)226.34160.41-29.13%
Change Contribution ByLTMLTM
Total Revenues ($ Mil)1913.802001.304.57%
Net Income Margin (%)20.60%22.65%9.91%
P/E Multiple32.1519.86-38.23%
Shares Outstanding (Mil)56.0056.10-0.18%
Cumulative Contribution-29.13%

LTM = Last Twelve Months as of date shown

Market Drivers

6/28/2025 to 12/27/2025
ReturnCorrelation
PAYC-29.1% 
Market (SPY)12.6%28.1%
Sector (XLI)7.5%29.2%

Fundamental Drivers

The -21.8% change in PAYC stock from 12/27/2024 to 12/27/2025 was primarily driven by a -18.6% change in the company's P/E Multiple.
1227202412272025Change
Stock Price ($)205.25160.41-21.85%
Change Contribution ByLTMLTM
Total Revenues ($ Mil)1823.922001.309.73%
Net Income Margin (%)25.78%22.65%-12.17%
P/E Multiple24.4019.86-18.61%
Shares Outstanding (Mil)55.9056.10-0.36%
Cumulative Contribution-21.85%

LTM = Last Twelve Months as of date shown

Market Drivers

12/27/2024 to 12/27/2025
ReturnCorrelation
PAYC-21.8% 
Market (SPY)17.0%55.6%
Sector (XLI)19.2%55.9%

Fundamental Drivers

The -45.9% change in PAYC stock from 12/28/2022 to 12/27/2025 was primarily driven by a -71.1% change in the company's P/E Multiple.
1228202212272025Change
Stock Price ($)296.62160.41-45.92%
Change Contribution ByLTMLTM
Total Revenues ($ Mil)1289.602001.3055.19%
Net Income Margin (%)19.40%22.65%16.75%
P/E Multiple68.6219.86-71.06%
Shares Outstanding (Mil)57.8756.103.05%
Cumulative Contribution-45.97%

LTM = Last Twelve Months as of date shown

Market Drivers

12/28/2023 to 12/27/2025
ReturnCorrelation
PAYC-21.5% 
Market (SPY)48.0%42.9%
Sector (XLI)41.2%46.3%

Return vs. Risk


Price Returns Compared

 202020212022202320242025Total [1]
Returns
PAYC Return71%-8%-25%-33%-0%-21%-38%
Peers Return16%38%-12%21%26%16%150%
S&P 500 Return16%27%-19%24%23%18%114%

Monthly Win Rates [3]
PAYC Win Rate75%50%50%42%42%42% 
Peers Win Rate52%65%42%68%57%52% 
S&P 500 Win Rate58%75%42%67%75%73% 

Max Drawdowns [4]
PAYC Max Drawdown-38%-32%-37%-51%-32%-22% 
Peers Max Drawdown-34%-5%-26%-7%-9%-23% 
S&P 500 Max Drawdown-31%-1%-25%-1%-2%-15% 


[1] Cumulative total returns since the beginning of 2020
[2] Peers: HPQ, HPE, IBM, CSCO, AAPL. See PAYC Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 12/26/2025 (YTD)

How Low Can It Go

Unique KeyEventPAYCS&P 500
2022 Inflation Shock2022 Inflation Shock  
2022 Inflation Shock% Loss% Loss-72.8%-25.4%
2022 Inflation Shock% Gain to Breakeven% Gain to Breakeven267.1%34.1%
2022 Inflation ShockTime to BreakevenTime to BreakevenNot Fully Recovered days464 days
2020 Covid Pandemic2020 Covid Pandemic  
2020 Covid Pandemic% Loss% Loss-51.1%-33.9%
2020 Covid Pandemic% Gain to Breakeven% Gain to Breakeven104.7%51.3%
2020 Covid PandemicTime to BreakevenTime to Breakeven185 days148 days
2018 Correction2018 Correction  
2018 Correction% Loss% Loss-31.7%-19.8%
2018 Correction% Gain to Breakeven% Gain to Breakeven46.4%24.7%
2018 CorrectionTime to BreakevenTime to Breakeven44 days120 days

Compare to HPQ, HPE, IBM, CSCO, AAPL

In The Past

Paycom Software's stock fell -72.8% during the 2022 Inflation Shock from a high on 11/2/2021. A -72.8% loss requires a 267.1% gain to breakeven.

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About Paycom Software (PAYC)

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.

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  • Salesforce for Human Resources and Payroll.
  • The cloud-native alternative to ADP or Paychex.

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  • Payroll Services: Comprehensive processing of employee wages, taxes, and deductions, ensuring compliance with regulations.
  • Time and Labor Management: Tools for tracking employee work hours, managing schedules, and administering leave requests.
  • Talent Acquisition: Solutions for recruiting, applicant tracking, background checks, and streamlined onboarding processes.
  • Talent Management: Features supporting performance reviews, goal setting, learning and development, and compensation administration.
  • HR Management: Services for benefits administration, maintaining employee data, ensuring compliance, and providing HR analytics.

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Paycom Software (PAYC) Customer Information

Paycom Software (PAYC) primarily sells its human capital management (HCM) software solution to other companies, not individuals. These companies utilize Paycom's platform for various HR functionalities including payroll, time and attendance, talent management, benefits administration, and more.

Due to the nature of its Software-as-a-Service (SaaS) business model, Paycom serves a broad and diverse client base across numerous industries. The company does not publicly disclose a list of specific "major customers" by name, as its revenue is diversified among a large number of client businesses rather than concentrated in a few named entities.

However, Paycom's target customer base can be characterized by the following categories of companies:

  • Small to Mid-Sized Businesses (SMBs): Historically, Paycom's core focus and strongest market penetration have been with companies typically having between 50 and 5,000 employees. These businesses benefit from Paycom's comprehensive, single-database solution to streamline complex HR processes, improve efficiency, and ensure compliance.
  • Companies Across Diverse Industries: Paycom's clients span a wide array of sectors, including retail, healthcare, hospitality, manufacturing, professional services, technology, and more. The need for efficient payroll and HR management is universal, making their solution applicable across various economic segments.
  • Growing Enterprises: While traditionally strong in the SMB and mid-market, Paycom is increasingly expanding its reach to larger enterprises. These companies seek robust, scalable HCM solutions to manage their larger workforces, complex regulatory requirements, and multi-state or multi-national operations.

As Paycom's customer base consists of a vast number of private and public companies across various sizes and industries, and no individual customer accounts for a significant portion of its revenue, specific customer company names and symbols are not publicly identifiable or disclosed as "major customers" in the traditional sense.

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Chad Richison, Chief Executive Officer, President, and Chairman Chad Richison founded Paycom Software, Inc. in 1998 and has served as its Chief Executive Officer, President, and Chairman since then. He previously began his career in sales with a national payroll and human resources company and a regional payroll company before founding Paycom. Richison led Paycom through its successful initial public offering (IPO) on the New York Stock Exchange in 2014. Bob Foster, Chief Financial Officer Bob Foster has served as Paycom's Chief Financial Officer since February 2025. Prior to joining Paycom in 2022, Mr. Foster spent eight years as CEO and chairman of a payroll company, where he significantly grew its revenue and expanded its offices. He also had a distinguished 31-year career at Ernst & Young, serving as a senior partner and managing several of the firm's largest accounts. Mr. Foster is a Certified Public Accountant. Randy Peck, Chief Operating Officer Randy Peck was appointed Paycom's Chief Operating Officer in May 2024, following his role as Senior Advisor to Executive Management. He joined Paycom in 2002 and has held various positions across operations, client service, product management, and sales, including Director of Software Strategy, Director of Operations, and Director of Client Service. Mr. Peck has more than 34 years of management experience in the payroll and human capital management (HCM) space. Shane Hadlock, Chief Client Officer and Chief Technology Officer Shane Hadlock was named Paycom's Chief Technology Officer in August 2025, in addition to his role as Chief Client Officer, which he assumed in October 2024. With over 30 years of technology experience, Mr. Hadlock has led multiple IT functions at Paycom for nearly 14 years, including six years as Executive Vice President of Information Technology and Information Security. Before joining Paycom, he spent 10 years in various leadership roles at Hertz. Rachael Gannon, Chief Automation Officer Rachael Gannon was promoted to Chief Automation Officer in August 2025, previously serving as Executive Vice President of Product and Development since April 2025. She joined Paycom in 2013 in the client services department and has held multiple product management leadership roles from 2020 to 2023. In her current role, she is responsible for driving the company's product strategy.

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Here are the key risks to Paycom Software (PAYC):

1. Intense Competition and Market Saturation

Paycom operates in a fiercely competitive human capital management (HCM) software market, facing established industry giants such as Automatic Data Processing (ADP) and Paychex, as well as an increasing number of aggressive new entrants. This intense competition can lead to slowing organic revenue growth and pressure on pricing power due to a lack of significant product differentiation. Some analyses suggest that the total addressable market (TAM) for Paycom may be more saturated than the company's management indicates, making it more challenging to gain further market share. Legacy leaders like ADP have also "retrenched and gone on offense," making the competitive landscape even more challenging.

2. Economic Slowdown and Impact on Employment

Paycom's business model relies heavily on a per-employee billing structure for its payroll and HR services. Consequently, an economic downturn that leads to increased unemployment directly and negatively impacts the company's fundamentals and recurring revenue growth. For example, during the COVID-19 pandemic in 2020, a spike in unemployment significantly reduced Paycom's recurring revenue growth rate due to client headcount reductions. This sensitivity to employment levels makes the company vulnerable to broader economic conditions.

3. Data Security and Compliance Risks

As a provider of human capital management solutions, Paycom handles vast amounts of highly sensitive personal and financial data for its clients and their employees. This makes the company a prime target for cyber-attacks, including data breaches, phishing, and malicious software. A data breach that occurred between May and June 2023, which exposed personal information including driver's license numbers for thousands of individuals, underscores this risk and resulted in a class-action lawsuit alleging unauthorized access to customer accounts and re-routing of direct deposits. Such incidents can lead to significant financial liabilities, reputational damage, loss of customer trust, and increased operational costs for remediation and enhanced security measures.

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Paycom Software Inc. (PAYC) operates in the Human Capital Management (HCM) software market, offering a comprehensive suite of cloud-based solutions including payroll processing, talent acquisition, talent management, human resource management, and workforce management systems.

The estimated addressable market for Paycom's main products and services in the United States varies depending on the specific segmentation:

  • The total addressable market (TAM) for Paycom's cloud-based Human Capital Management (HCM) software solutions, primarily targeting mid-sized companies and large enterprises, is estimated to be $22.4 billion.
  • Management estimates the addressable market for its services, primarily targeting small-to-medium size businesses (SMBs) with 50 to 5,000 employees, to be $24 billion in the U.S., with an anticipated annual growth rate of 9-10%.
  • The total addressable market (TAM) for U.S. HCM software is estimated to be around $25 billion, growing at approximately 10% to 12% annually.

For the broader payroll and HCM industry, the market is estimated to be $70 billion, comprised of a $50 billion payroll market and a $20 billion HCM market. The U.S. payroll services market alone is expected to reach $8.44 billion in 2025 and grow to $11.06 billion by 2030.

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Paycom Software (PAYC) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

  1. Continued Product Innovation and Automation: Paycom is heavily investing in and expanding its suite of automated, AI-driven solutions such as "Beti" and "IWant." These products aim to enhance efficiency, reduce manual tasks, and improve overall client experience, thereby driving adoption and sales. Beti, the payroll solution, is noted for significantly reducing payroll processing labor and error correction time, while the AI-powered "IWant" is transforming how clients engage with HR and payroll data, leading to increased client engagement and expanded sales pipelines.

  2. New Client Acquisition and Market Share Expansion: The company continues to prioritize acquiring new clients and increasing its market share. This includes further penetration into the small to mid-sized business market, as well as a strategic shift towards targeting larger enterprises. Efforts in sales execution and streamlined sales processes are aimed at winning new "logos" (clients) across various market segments.

  3. International Expansion: Paycom is actively pursuing growth opportunities through international expansion. Recent efforts include investments in this area and the launch of "Global HCM" with native payroll processing capabilities in countries like Mexico and Canada, indicating a strategic push to broaden its geographical footprint.

  4. Cross-selling and Upselling Additional Modules: With its comprehensive, cloud-based human capital management (HCM) platform, Paycom aims to drive revenue by cross-selling and upselling additional software modules to its existing client base. The introduction of new, innovative products and enhanced automation capabilities is expected to increase "product attach rates" and enable clients to derive more value, leading to the adoption of more services.

  5. Enhanced Client Retention through Operational Efficiencies: By providing high-ROI solutions and improving operational efficiencies through automation, Paycom aims to significantly boost client satisfaction and retention. Automation has led to a notable decline in internal support tickets and inbound client call volumes, which are positive indicators for client loyalty. Strong client retention is a critical component of Paycom's recurring revenue model and overall growth.

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Capital Allocation Decisions (Last 3-5 Years)

Share Repurchases

  • Paycom's board of directors authorized an increase to its stock repurchase plan to $1.5 billion through August 15, 2026, as of July 31, 2024.
  • Since July 2023, the company repurchased approximately 2.3 million shares for nearly $413 million. Since the beginning of 2023, Paycom repurchased 4.1 million shares of common stock for $806 million.
  • As of October 31, 2025, approximately $1.1 billion remained available under the current buyback authorization.

Capital Expenditures

  • Approximately $100 million was invested in AI-focused capital expenditures for Phoenix and Oklahoma City data centers, largely completed by Q3 2025, to support AI initiatives such as iOne.
  • Capital expenditures for the expansion of its corporate headquarters commenced in Q4 2021 and continued throughout 2022, with an estimated cost of $70 million to $75 million, with construction expected to be completed in the first half of 2024.
  • Paycom anticipates capital expenditures to be in the single digits as a percentage of revenue for the upcoming year (presumably 2026).

Better Bets than Paycom Software (PAYC)

Trade Ideas

Select ideas related to PAYC. For more, see Trefis Trade Ideas.

Unique KeyDateTickerCompanyCategoryTrade Strategy6M Fwd Rtn12M Fwd Rtn12M Max DD
CNM_11212025_Dip_Buyer_FCFYield11212025CNMCore & MainDip BuyDB | FCFY OPMDip Buy with High FCF Yield and High Margin
Buying dips for companies with high FCF yield and meaningfully high operating margin
18.3%18.3%-1.6%
VRRM_11212025_Dip_Buyer_FCFYield11212025VRRMVerra MobilityDip BuyDB | FCFY OPMDip Buy with High FCF Yield and High Margin
Buying dips for companies with high FCF yield and meaningfully high operating margin
5.5%5.5%-1.2%
LII_11212025_Dip_Buyer_ValueBuy11212025LIILennox InternationalDip BuyDB | P/E OPMDip Buy with Low PE and High Margin
Buying dips for companies with tame PE and meaningfully high operating margin
7.1%7.1%0.0%
ADP_11212025_Monopoly_xInd_xCD_Getting_Cheaper11212025ADPAutomatic Data ProcessingMonopolyMY | Getting CheaperMonopoly-Like with P/S Decline
Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple
2.9%2.9%-1.2%
CW_11212025_Quality_Momentum_RoomToRun_10%11212025CWCurtiss-WrightQualityQ | Momentum | UpsideQuality Stocks with Momentum and Upside
Buying quality stocks with strong momentum but still having room to run
5.7%5.7%-0.4%
PAYC_11072025_Dip_Buyer_ValueBuy11072025PAYCPaycom SoftwareDip BuyDB | P/E OPMDip Buy with Low PE and High Margin
Buying dips for companies with tame PE and meaningfully high operating margin
-0.8%-0.8%-1.6%
PAYC_9302024_Dip_Buyer_ValueBuy09302024PAYCPaycom SoftwareDip BuyDB | P/E OPMDip Buy with Low PE and High Margin
Buying dips for companies with tame PE and meaningfully high operating margin
31.6%25.8%-4.0%

Recent Active Movers

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Peer Comparisons for Paycom Software

Peers to compare with:

Financials

PAYCHPQHPEIBMCSCOAAPLMedian
NamePaycom S.HP Hewlett .Internat.Cisco Sy.Apple  
Mkt Price160.4123.2624.49305.0978.16273.40119.28
Mkt Cap9.021.932.6284.9309.24,074.4158.8
Rev LTM2,00155,29534,29665,40257,696408,62556,496
Op Inc LTM5583,6241,64411,54412,991130,2147,584
FCF LTM3902,80062711,85412,73396,1847,327
FCF 3Y Avg3312,9781,40011,75313,879100,5037,366
CFO LTM6433,6972,91913,48313,744108,5658,590
CFO 3Y Avg5433,6723,89613,49814,736111,5598,697

Growth & Margins

PAYCHPQHPEIBMCSCOAAPLMedian
NamePaycom S.HP Hewlett .Internat.Cisco Sy.Apple  
Rev Chg LTM9.7%3.2%13.8%4.5%8.9%6.0%7.4%
Rev Chg 3Y Avg16.0%-3.9%6.5%2.6%3.7%1.8%3.2%
Rev Chg Q9.2%4.2%14.4%9.1%7.5%9.6%9.1%
QoQ Delta Rev Chg LTM2.1%1.1%3.7%2.1%1.8%2.1%2.1%
Op Mgn LTM27.9%6.6%4.8%17.7%22.5%31.9%20.1%
Op Mgn 3Y Avg29.3%7.4%7.2%16.4%24.2%30.8%20.3%
QoQ Delta Op Mgn LTM-0.2%-0.2%-1.4%0.6%0.4%0.1%-0.1%
CFO/Rev LTM32.1%6.7%8.5%20.6%23.8%26.6%22.2%
CFO/Rev 3Y Avg29.8%6.8%12.7%21.4%26.1%28.4%23.8%
FCF/Rev LTM19.5%5.1%1.8%18.1%22.1%23.5%18.8%
FCF/Rev 3Y Avg18.2%5.5%4.6%18.6%24.6%25.6%18.4%

Valuation

PAYCHPQHPEIBMCSCOAAPLMedian
NamePaycom S.HP Hewlett .Internat.Cisco Sy.Apple  
Mkt Cap9.021.932.6284.9309.24,074.4158.8
P/S4.50.41.04.45.410.04.4
P/EBIT14.66.819.925.122.531.321.2
P/E19.98.6572.736.029.941.033.0
P/CFO14.05.911.221.122.537.517.6
Total Yield6.0%14.1%2.3%5.0%5.4%2.8%5.2%
Dividend Yield0.9%2.5%2.1%2.2%2.1%0.4%2.1%
FCF Yield 3Y Avg2.9%10.6%5.5%6.4%6.0%3.1%5.7%
D/E0.00.50.70.20.10.00.2
Net D/E-0.00.30.60.20.00.00.1

Returns

PAYCHPQHPEIBMCSCOAAPLMedian
NamePaycom S.HP Hewlett .Internat.Cisco Sy.Apple  
1M Rtn-0.3%-1.8%14.4%0.6%2.7%-1.5%0.2%
3M Rtn-26.1%-11.9%2.7%7.9%17.0%7.1%4.9%
6M Rtn-29.1%-4.0%34.5%6.6%15.2%36.3%10.9%
12M Rtn-21.8%-27.0%16.2%40.5%34.5%7.5%11.8%
3Y Rtn-45.9%-1.9%71.1%143.1%81.3%120.2%76.2%
1M Excs Rtn-4.8%-5.6%12.9%-2.2%-0.0%-3.7%-3.0%
3M Excs Rtn-30.4%-16.2%-1.7%3.6%12.7%2.8%0.6%
6M Excs Rtn-41.4%-16.3%22.3%-5.7%3.0%24.0%-1.3%
12M Excs Rtn-37.9%-42.9%-0.7%25.0%19.9%-8.4%-4.6%
3Y Excs Rtn-127.5%-83.5%-11.2%59.6%-1.2%28.4%-6.2%

Financials

Segment Financials

Revenue by Segment
$ Mil20242023202220212020
Cloud-based HCM solution delivered as Software-as-a-Service1,6941,375  738
Implementation and other  1916 
Recurring  1,037826 
Total1,6941,3751,056841738


Price Behavior

Price Behavior
Market Price$160.41 
Market Cap ($ Bil)9.0 
First Trading Date04/15/2014 
Distance from 52W High-39.4% 
   50 Days200 Days
DMA Price$172.69$213.28
DMA Trenddowndown
Distance from DMA-7.1%-24.8%
 3M1YR
Volatility34.8%35.3%
Downside Capture112.4497.83
Upside Capture-55.4058.14
Correlation (SPY)24.3%55.5%
PAYC Betas & Captures as of 11/30/2025

 1M2M3M6M1Y3Y
Beta1.510.911.021.031.081.12
Up Beta1.091.671.751.761.301.21
Down Beta1.491.331.161.431.071.18
Up Capture44%-46%-31%-13%49%49%
Bmk +ve Days12253873141426
Stock +ve Days7172759126396
Down Capture225%132%161%144%107%105%
Bmk -ve Days7162452107323
Stock -ve Days12243566122354

[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
 Comparison of PAYC With Other Asset Classes (Last 1Y)
 PAYCSector ETFEquityGoldCommoditiesReal EstateBitcoin
Annualized Return-22.0%19.3%17.8%72.1%8.6%4.4%-8.2%
Annualized Volatility35.1%18.8%19.4%19.3%15.2%17.0%35.0%
Sharpe Ratio-0.650.800.722.700.340.09-0.08
Correlation With Other Assets 56.0%55.7%-1.9%16.2%51.7%18.9%

ETFs used for asset classes: Sector ETF = XLI, Equity = SPY, Gold = GLD, Commodities = DBC, Real Estate = VNQ, and Bitcoin = BTCUSD
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
 Comparison of PAYC With Other Asset Classes (Last 5Y)
 PAYCSector ETFEquityGoldCommoditiesReal EstateBitcoin
Annualized Return-18.0%13.8%14.7%18.7%11.5%4.6%30.8%
Annualized Volatility44.3%17.2%17.1%15.5%18.7%18.9%48.6%
Sharpe Ratio-0.290.650.700.970.500.160.57
Correlation With Other Assets 46.6%53.6%4.8%9.9%42.8%25.1%

ETFs used for asset classes: Sector ETF = XLI, Equity = SPY, Gold = GLD, Commodities = DBC, Real Estate = VNQ, and Bitcoin = BTCUSD
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
 Comparison of PAYC With Other Asset Classes (Last 10Y)
 PAYCSector ETFEquityGoldCommoditiesReal EstateBitcoin
Annualized Return15.8%13.5%14.8%15.3%7.0%5.3%69.2%
Annualized Volatility44.7%19.9%18.0%14.7%17.6%20.8%55.8%
Sharpe Ratio0.500.600.710.860.320.220.90
Correlation With Other Assets 50.3%58.4%0.7%17.1%48.5%16.7%

ETFs used for asset classes: Sector ETF = XLI, Equity = SPY, Gold = GLD, Commodities = DBC, Real Estate = VNQ, and Bitcoin = BTCUSD
Smart multi-asset allocation framework can stack odds in your favor. Learn How

Short Interest

Short Interest: As Of Date12152025
Short Interest: Shares Quantity2,471,590
Short Interest: % Change Since 11302025-3.1%
Average Daily Volume715,765
Days-to-Cover Short Interest3.45
Basic Shares Quantity56,100,000
Short % of Basic Shares4.4%

Earnings Returns History

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 Forward Returns
Earnings Date1D Returns5D Returns21D Returns
11/5/2025-10.7%-8.7%-10.5%
8/6/20254.5%-0.8%0.5%
5/7/20259.0%12.5%16.4%
2/12/20252.4%3.5%0.6%
10/30/202421.4%34.2%34.9%
7/31/20240.4%-8.4%-1.7%
5/1/2024-10.5%-7.5%-21.8%
2/7/2024-1.6%-4.9%-8.8%
...
SUMMARY STATS   
# Positive12711
# Negative121713
Median Positive7.4%10.0%6.9%
Median Negative-7.5%-7.5%-10.5%
Max Positive21.4%34.2%34.9%
Max Negative-38.5%-31.5%-25.7%

SEC Filings

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Report DateFiling DateFiling
93020251106202510-Q 9/30/2025
6302025807202510-Q 6/30/2025
3312025508202510-Q 3/31/2025
12312024220202510-K 12/31/2024
93020241031202410-Q 9/30/2024
6302024801202410-Q 6/30/2024
3312024502202410-Q 3/31/2024
12312023215202410-K 12/31/2023
93020231102202310-Q 9/30/2023
6302023803202310-Q 6/30/2023
3312023504202310-Q 3/31/2023
12312022216202310-K 12/31/2022
93020221103202210-Q 9/30/2022
6302022804202210-Q 6/30/2022
3312022505202210-Q 3/31/2022
12312021217202210-K 12/31/2021