Paycom Software, Inc. · Software

PAYC

Low riskNext report: In 7 days (est.)

View price ↗

The short version

A high-quality, profitable business with steady sales. Institutions are trimming.

Going well

Profitable every year for 10 years
Brings in more cash than it spends
Buying back shares: share count down 3.5% in 3 years

Money moves

No insider buying or selling in the last 30 days
Institutions cut 8.3% from their holdings in the quarter ending June 2026 (289 bought, 323 sold)
Held by Ray Dalio (Bridgewater), Terry Smith (Fundsmith)

Facts from SEC filings, not a recommendation.

What the price means

Price as of Oct 26

$268.15-2.3% that day

Company value: $12.1B; Share price times all shares
Price vs profit (P/E): 28.5x; You pay about $29 for each $1 of yearly profit
Price vs sales: 5.6x; Company value is 5.6 times a year of sales
Dividend yield: 0.1%; Yearly dividend as a share of today's price
Cash vs value: 2%; Cash as a share of company value

From PAYC's last IEX trade and its SEC filings (profits and sales over the last four quarters). A starting point for research, not a verdict.

The business over time

Last 12 quarters, from SEC filings

Sales, Jun '26

$531.2M+9.8% vs a year earlier

Sep '23Tap a barJun '26

Last 12 months: $2.1B, up 9.2% from the 12 months before. Over 5 years, sales grew about 20% a year.

What the price assumes

Your guesses, our math

Move the sliders to your own view of PAYC. Starting points are the company's recent numbers.

Sales growth+9% a yearRecently: +9.2% a yearProfit margin23%Last 12 months: 22.8%P/E at the end29xToday: 28.5x. Many steady companies trade at 12x to 25xShare count change-1% a yearBelow zero means buybacks; above zero means new shares (dilution)

Sales in 5 years$3.3B

Profit in 5 years$758M

Price these guesses point to$512.55+91% vs $268.15 todayAbout +14% a year, before dividends

What today's price needs: with a 23% margin and a 29x P/E, sales could shrink about 4.2% a year for 5 years and still match today's price.

Simple math on your guesses, not a forecast or a price target. Real results depend on many things these sliders leave out.

Price

Price chart by TradingView.

Business quality

The checklist Warren Buffett-style investors use. Annual numbers for 2025.

6/6Strong

PassReturn on equity 15%+Earns a lot on the money owners have in the business.27.4%
PassNet margin 10%+Keeps at least 10 cents of profit from each dollar of sales.22.1%
PassProfitable every yearSteady profits, not one good year.10 of 10 years
PassFree cash flow positiveBrings in more cash than it spends to run and grow.$408.0M
PassShare count not growingNot diluting owners. Falling means buybacks.-3.5% in 3 years
PassGross margin 40%+Pricing power: sells for well above what it costs to make.83.2%

Revenue: $2.1B; +8.9% vs prior year
5-year growth: +19.5%/yr; revenue, per year
Current ratio: 1.09x; short-term assets / bills due
Free cash flow: $408.0M; 19.9% of revenue

From annual reports filed with the SEC. Not in this company's SEC data, so not scored: debt under half of equity. A checklist is a starting point for research, not a verdict.