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PAYC

PAYC

Technology · Software - Application

$129.84-3.60%
Mkt Cap: $6.05BDY: 1.11%

Performance

PAYC (PAYC) Stock Analysis 2026

Rule-based · Updated daily · Not financial advice

PAYC (PAYC) operates in the Software - Application space within the Technology sector. With a market cap of $6.1B, it qualifies as a small-cap company. Growth is moderate and the business remains profitable, offering a balanced risk/reward profile compared to high-multiple peers.

Bull Case6
  • Forward P/E (10.6×) is lower than trailing P/E (15.0×) — analysts expect earnings to improve
  • Revenue growth of 8% YoY shows solid business momentum
  • Earnings grew 23% YoY — bottom-line is expanding fast
  • Exceptional profit margin of 22.4% — the business retains a large share of each dollar earned
  • ROE of 37.1% shows management efficiently converts equity into profit
  • Price is near its 52-week low — potential entry point with asymmetric upside
Bear Case1
  • High debt-to-equity of 94.07× increases financial risk, especially with elevated interest rates

Verdict

Strong Buy

Multiple fundamental strengths with few red flags. Long-term buyers may find this compelling.

AI Insight

Powered by Claude

AI-generated analysis for informational purposes only. Not financial advice.

Related Articles

Revenue & Results

Dividends

Current DY

1.11%

5Y Avg Annual

$0.9750

Last Payment

$0.3750

Ex-Date

05/26/2026

Annual dividends paid per share

2026
Ex-DatePaymentAmountEst. DY
Latest05/26/2026
06/08/2026$0.37501.16%
03/09/2026
03/22/2026$0.37501.16%
11/24/2025
12/07/2025$0.37501.16%
08/25/2025
09/07/2025$0.37501.16%
05/27/2025
06/09/2025$0.37501.16%
03/10/2025
03/23/2025$0.37501.16%
11/25/2024
12/08/2024$0.37501.16%
08/26/2024
09/08/2024$0.37501.16%

Magic Number

Shares needed to self-fund your next purchase

$129.85

Price

÷

$0.3750

Last div. (quarterly)

=

347

shares

Own 347 PAYC shares ($45,056.22) and each quarterly dividend pays for 1 new share — the snowball runs on its own.

Investment target

$45,056.22

New shares / year

+4 shares

If You Had Invested…

Hypothetical return based on historical prices

$

* Dividend reinvestment calculated at ex-date price. For informational purposes only.

Earnings

Next Earnings

Aug 5, 2026

50

days

EPS (TTM)

$8.63

P/E (TTM)

15.0

Fwd P/E

10.6

Earnings History

SEC EDGAR · official filings

SEC filings

SEC Filings

Official EDGAR documents

All filings

Key Statistics

Valuation

Market Cap$6.05B
P/E Ratio15.05
Forward P/E10.56
P/B Ratio
PEG Ratio0.97
EPS (TTM)$8.63

Trading

Open
Day High
Day Low
52W High$248.95
52W Low$104.90
Volume
Avg Volume (3M)1,188,703
Beta0.79

Dividends

Dividend Yield1.11%
Annual Rate$1.50
Ex-Div Date2026-05-26
Payout Ratio17.36%

Profitability

Profit Margin22.44%
Operating Margin36.76%
ROE37.15%
ROA7.88%
Revenue Growth7.80%
Earnings Growth22.60%

Balance Sheet

Total Revenue$2.09B
Total Debt$763.60M
Debt / Equity94.07
Current Ratio1.08
Free Cash Flow$294.76M

Fair Value Estimates

Current price: $129.84

Graham Number

√(22.5 × EPS × Book Value)

$58.84

-54.7% downside

Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.

Bazin Ceiling Price

Avg. Annual DPS (5Y) ÷ 6%

$22.92

-82.4% downside

Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.

These are simplified estimates. Not financial advice.

Buy & Hold Checklist

Quality criteria for long-term holding

8/10

80% score

Pays dividends

3Y hist.

3+ years of dividend history

Dividend consistency (5Y+)

3 yrs

Uninterrupted dividend payments for at least 5 years

ROE above 10%

37.1%

Return on equity — measures how efficiently capital is used

Positive profit margin

22.4%

Net profit margin must be positive — company earns more than it spends

Revenue growth (annual)

+7.8%

Annual revenue must be growing compared to the prior year

Earnings growth (annual)

+22.6%

Annual earnings must be growing compared to the prior year

Debt/Equity below 2×

94.07×

Low financial leverage reduces risk of distress

Current ratio above 1

1.08×

Short-term assets must cover short-term liabilities

Daily liquidity above $5M

$154M/day

High trading volume ensures easy entry and exit

Dividend yield above 0%

1.11%

Stock must distribute income to shareholders

Related Assets

Technology

About 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. The company offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company's HCM solution offers payroll applications comprising better employee transaction interface, payroll and payroll tax management, payroll card, Everyday, Paycom pay, Client Action Center, expense management, garnishment administration, and GL concierge applications; talent acquisition, including applicant tracking, background checks, on-boarding, e-verify, and tax credit services; and talent management applications that include employee self-service, compensation budgeting, performance management, position management, Paycom learning, certification management. The company also offers time and labor management, such as time and attendance, scheduling, time-off requests, and labor allocation solutions. 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; COBRA administration; personnel action and performance discussion forms; Paycom surveys; retirement reporting; report center; and affordable care act applications, as well as Clue, which securely collects, tracks, and manages the vaccination and testing data of the workforce; and MyCom is a communications tool that provides organizations with a central place to share information with employees. Paycom Software, Inc. was founded in 1998 and is based in Oklahoma City, Oklahoma.

Sector

Technology

Industry

Software - Application

Location

Oklahoma City, United States

Employees

5,770