PAYC
Paycom Software, Inc.
PAYC's fundamentals are strong and it looks cheap: trading at 24x earnings, less than half its usual 57x. Analysts expect strong earnings growth, though they disagree widely on how much.
PAYC Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| Strong | |
| Healthy |
PAYC's revenue, profitability, cash flow and balance sheet are all currently healthy.
PAYC PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 17x | $249 | — |
| Cheap | 21x | $216 | -13% |
| Current | 24x | $249 | — |
| Fair | 57x | $591 | +138% |
| Expensive | 127x | $1,325 | +433% |
Historical ranges are pointers, not guarantees.
PAYC's PE is in its cheap range at 24x. If earnings grow as analysts expect, today's price would be 17x next year's earnings.
PAYC Forward outlook
| Metric | Outlook |
|---|---|
| Strongly improving | |
| Strong growth | |
| Growth | |
| Strongly improving | |
| Moderate | |
| Low |
Analysts expect earnings and revenue growth for PAYC, with profitability improving. However, they disagree widely on these estimates.
PAYC Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $14.94 | +43% |
| Q3 2026 | $10.43 | +29% |
| Q2 2026 | $9.40 | +27% |
| Q1 2026 | $8.64 | +23% |
| Q4 2025 | $8.08 | -9.4% |
| Q3 2025 | $8.06 | -2.8% |
| Q2 2025 | $7.41 | -11% |
| Q1 2025 | $7.03 | -14% |
| Q4 2024 | $8.92 | +52% |
PAYC earned $10.43 per share over the past year, up 29% from the year before.
PAYC Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $543.8M | +10% |
| Q2 2026 | $531.2M | +9.8% |
| Q1 2026 | $571.9M | +7.8% |
| Q4 2025 | $544.3M | +10% |
| Q3 2025 | $493.3M | +9.2% |
| Q2 2025 | $483.6M | +11% |
| Q1 2025 | $530.5M | +6.1% |
| Q4 2024 | $493.9M | +14% |
PAYC's revenue has grown year over year every quarter since late 2020: $544M last quarter, up 10% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 36% | +13 points |
| Q2 2026 | 32% | +8.5 points |
| Q1 2026 | 37% | +1.9 points |
| Q4 2025 | 29% | -1.2 points |
| Q3 2025 | 23% | -0.4 points |
| Q2 2025 | 23% | +1.5 points |
| Q1 2025 | 35% | -22 points |
| Q4 2024 | 30% | +5.5 points |
PAYC's operating margin was 36% last quarter, up 13 points from the same quarter a year ago.
PAYC Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $163.8M | +105% |
| Q2 2026 | $190.1M | +213% |
| Q1 2026 | $182.6M | +26% |
| Q4 2025 | $122.6M | +12% |
| Q3 2025 | $79.8M | +79% |
| Q2 2025 | $60.8M | -30% |
| Q1 2025 | $144.8M | +43% |
| Q4 2024 | $109M | +41% |
PAYC generated $659M in free cash flow over the past year, up 67% from the year before.
PAYC Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -3.1% | -1.4M shares |
| 1 year | -21% | -11.9M shares |
| 3 years | -23% | -13.5M shares |
| 5 years | -24% | -13.7M shares |
| Available history | -24% | -13.9M shares |
PAYC has 45M diluted shares, down 21% from a year ago, with $1.5B in buybacks over the past year.
| Quarter | Spent |
|---|---|
| Q3 2026 | $1.2M |
| Q2 2026 | $335.4M |
| Q1 2026 | $1.1B |
| Q4 2025 | $106.6M |
| Q4 2024 | $1,000 |
| Q3 2024 | $42M |
| Q4 2023 | $211.6M |
| Q4 2022 | — |
PAYC spent $1.5B buying back its own shares over the past year.
PAYC Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 0.6x | Very low |
| Q2 2026 | 0.9x | Very low |
| Q1 2026 | 0.7x | Very low |
| Q4 2025 | -0.5x | Net Cash |
| Q3 2025 | -0.6x | Net Cash |
| Q2 2025 | -0.8x | Net Cash |
| Q1 2025 | -0.8x | Net Cash |
| Q4 2024 | -0.5x | Net Cash |
PAYC's net debt is less than a year of its operating earnings (EBITDA), after holding more cash than debt a year ago.
PAYC Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 63.8 | Neutral |
| Stochastic | 73.3 | Neutral |
PAYC's weekly RSI is 64 (neutral) and its Stochastic is 73 (neutral).
PAYC PE vs Technology Sector
| Metric | PAYC | Sector median | Relative |
|---|---|---|---|
| PE | 24x | 28x | 14% below |
| PE % | 20 | 35 | 15 pts below |
PAYC is trading at 24x earnings, a 14% discount to the Technology sector's median of 28x.
PAYC Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $243.8 | 2.1% above |
| 20 week MA | $213.2 | 17% above |
| 50 week MA | $167.3 | 49% above |
| 100 week MA | $191.7 | 30% above |
| 200 week MA | $209.8 | 19% above |
PAYC has climbed back above all five of its weekly moving averages, and it's now 19% above its 200-week average.
PAYC Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $268.9 | $462.1 | +72% |
| 2021 | $462.1 | $423.8 | -8.3% |
| 2022 | $423.8 | $305.2 | -28% |
| 2023 | $305.2 | $206.7 | -32% |
| 2024 | $206.7 | $206.7 | 0% |
| 2025 | $206.7 | $160.4 | -22% |
| 2026 YTD | $160.4 | $248.8 | +55% |
PAYC is up 55% so far in 2026, after finishing lower in five of the previous six years.