PAYC
Technology · Software - Application
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.
- 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
- 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 ClaudeAI-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
| Ex-Date | Payment | Amount | Est. DY |
|---|---|---|---|
Latest05/26/2026 | 06/08/2026 | $0.3750 | 1.16% |
03/09/2026 | 03/22/2026 | $0.3750 | 1.16% |
11/24/2025 | 12/07/2025 | $0.3750 | 1.16% |
08/25/2025 | 09/07/2025 | $0.3750 | 1.16% |
05/27/2025 | 06/09/2025 | $0.3750 | 1.16% |
03/10/2025 | 03/23/2025 | $0.3750 | 1.16% |
11/25/2024 | 12/08/2024 | $0.3750 | 1.16% |
08/26/2024 | 09/08/2024 | $0.3750 | 1.16% |
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
Official EDGAR documents
Key Statistics
Valuation
Trading
Dividends
Profitability
Balance Sheet
Fair Value Estimates
Current price: $129.84
Graham Number
√(22.5 × EPS × Book Value)
$58.84
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
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 yrsUninterrupted 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/dayHigh 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