PAYC

Technology

Paycom Software, Inc. · Software - Application · $8B

UQS Score — Balanced Preset
54.1
Good

Paycom Software, Inc. scores 54.1/100 using the Balanced preset.

UQS vs Technology Sector
PAYC
54.1
Sector avg
38.0
Quality
Good
Moat
Weak
Growth
Weak
Risk
Neutral
Valuation
Attractive

What is Paycom Software, Inc.?

Paycom Software delivers cloud-based human capital management software to small and mid-sized businesses across the United States, helping employers manage the full employee lifecycle in a single platform.

The company generates revenue through a subscription SaaS model, charging businesses for access to its HCM suite. Customers use Paycom to handle payroll, talent acquisition, time tracking, performance management, and employee self-service — all within one unified system rather than stitching together multiple vendors.

Paycom was incorporated in 2014 and is headquartered in Oklahoma City, Oklahoma.

  • Payroll and tax management
  • Applicant tracking and onboarding
  • Time, attendance, and scheduling tools
  • Employee self-service and learning platform

Is PAYC a Good Stock to Buy?

UQS Score rates PAYC as Good overall.

Paycom's strongest pillar is Risk, reflecting a relatively stable financial profile for a mid-cap SaaS company. Valuation is rated Attractive, suggesting the market may not be fully pricing in the company's fundamentals relative to peers.

The Moat and Growth pillars both register as Weak, pointing to competitive pressure in the HCM space and a slower near-term expansion trajectory.

See the exact pillar breakdown and full financial metrics by signing up for a Pro account at uqs-score.com. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does PAYC pay dividends?

Yes — Paycom Software, Inc. pays a dividend.

Paycom pays a regular dividend, which is relatively uncommon among pure-play SaaS companies. This reflects a degree of financial maturity and confidence in recurring cash generation, though income-focused investors should weigh it alongside the company's reinvestment priorities.

When does PAYC report earnings?

Paycom Software reports earnings on a quarterly cadence, typical for US-listed equities.

Revenue growth has moderated in recent periods as the company navigates a competitive HCM market and works to deepen adoption of its self-service tools. Risk metrics remain relatively contained, which supports the company's ability to sustain its dividend and invest in product development.

For the most recent quarter's results, visit Paycom's investor relations page directly.

PAYC Price History

-59.5% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Paycom Software, Inc.?

$
Today it would be worth
$3,488
That's a -65.1% total return, or -19.0% annualized.

Based on Paycom Software, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

Frequently Asked Questions

What does Paycom do?

Paycom provides a cloud-based HCM platform for small and mid-sized US businesses. Its single-database system covers payroll, hiring, scheduling, performance management, and employee self-service, allowing companies to manage the entire employment lifecycle without switching between separate software tools.

Does PAYC pay dividends?

Yes, Paycom pays a regular dividend. This is notable for a SaaS-model company and signals financial stability. Investors should check Paycom's investor relations page for the current dividend rate and payment schedule, as specific dates are not covered by our data source.

When does PAYC report earnings?

Paycom follows a standard quarterly earnings cadence. The company typically releases results within a few weeks of each quarter's close. For confirmed dates, refer to Paycom's investor relations page or your brokerage's earnings calendar.

Is PAYC a good stock to buy?

UQS Score rates PAYC as Good overall. The Risk pillar is Strong and Valuation is Attractive, but Moat and Growth are both Weak. Whether that profile fits your portfolio depends on your investment goals. The full pillar breakdown is available to Pro members on uqs-score.com.

Is PAYC overvalued?

The UQS Valuation pillar for PAYC is rated Attractive, suggesting the stock may be reasonably priced relative to its fundamentals when compared to sector peers. Pro members can view the detailed valuation metrics behind this rating.

What is PAYC's market cap bracket?

Paycom is classified as a mid-cap company. This places it in a range that typically offers more growth potential than large-caps but with greater volatility than mega-cap peers in the enterprise software space.

Is PAYC a long-term quality indicator?

From a quality standpoint, PAYC scores Good on the UQS composite. Its Strong Risk profile and Attractive Valuation provide a reasonable foundation, but the Weak Moat rating raises questions about long-term competitive durability in a crowded HCM market.

What sector does PAYC belong to?

Paycom operates in the Technology sector, specifically within cloud-based enterprise software. Its focus on human capital management places it alongside other SaaS vendors targeting HR, payroll, and workforce management for businesses.

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Pro Analysis

PAYC — Score History

4550556065Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 15 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 21, 202654.365.737.032.355.192.8-2.9
May 7, 202657.262.037.029.882.094.3+0.2
May 3, 202657.062.037.029.882.092.8-0.3
Apr 26, 202657.362.037.029.982.095.1+0.1
Apr 19, 202657.262.037.029.982.094.2-0.3
Apr 18, 202657.562.037.029.982.096.3+0.1
Apr 15, 202657.462.037.029.982.095.4+0.1
Apr 14, 202657.362.037.029.682.095.2-0.2
Apr 12, 202657.562.037.029.682.096.8+0.5
Apr 11, 202657.062.037.029.682.093.6+0.1

PAYC — Pillar Breakdown

Quality

65.5/100 (25%)

Paycom Software, Inc. shows solid profitability with healthy returns on capital and reasonable margins.

Capital Efficiency (ROIC)Moderate

How effectively capital is deployed to generate returns.

Return on EquityStrong

Profitability relative to shareholders' equity.

Operating ProfitabilityModerate

Ability to convert revenue into operating profit.

Net ProfitabilityStrong

Bottom-line profit as a share of revenue.

Gross Profit / AssetsWeak

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationModerate

Free cash flow relative to market value.

Growth

32.3/100 (20%)

Paycom Software, Inc. faces growth headwinds with declining or stagnant revenue trends.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

55.1/100 (15%)

Paycom Software, Inc. maintains a reasonable risk profile with manageable debt levels.

Financial LeverageModerate

Debt levels relative to earnings capacity.

Debt/EquityModerate

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageStrong

Earnings capacity relative to interest payments.

Valuation

91.9/100 (15%)

Paycom Software, Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.

Earnings YieldStrong

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorStrong

Enterprise value multiple relative to sector median.

Moat

37/100 (25%)

Paycom Software, Inc. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for PAYC.

Score Composition

Quality
65.5×25%16.4
Growth
32.3×20%6.5
Risk
55.1×15%8.3
Valuation
91.9×15%13.8
Moat
37.0×25%9.3
Total
54.1Good

Financial Data

More Stock Analysis

How is the PAYC UQS Score Calculated?

The UQS (Unified Quality Score) for Paycom Software, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Paycom Software, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Paycom Software, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.