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Paycom Software, Inc. (PAYC) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Paycom Software, Inc.

PAYCMarket cap $9.85BPrice $222.4

Country🇺🇸United States

SectorIndustrials

IndustryProfessional Services

Runs a single-database payroll and HR software platform that lets employees manage their own paychecks, benefits, and time-off requests. Its "Beti" tool has employees self-audit payroll, slashing errors before checks even get cut.

In Bastion Portfolios?

52W Return+11%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+14%8

Revenue Forecast

Rev CAGR (1y)+8%5

Rev CAGR (3y)+8%6

Rev CAGR (5y)+7%6

Earnings Forecast

EPS Growth Y+1+44%9

EPS Growth Y+2+9%6

EPS Growth Y+3+12%7

Quality

Margins

EBIT Margin30%9

Net Income Margin23%8

Free Cash Flow Margin27%9

Debt

Net Debt/EBITDA1.06

Efficiency

ROE41%10

ROA11%9

Earnings Stability1010

GEAR+VERY STRONG85

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)175

P/E Ratio (Forward 3y)145

P/BV17.21

EV Multiples

EV/EBITDA Fwd116

EV/EBIT Fwd137

Yield

Free Cash Flow Yield5.8%7

Dividend Yield0.7%2

Momentum

Short term

1 month return-4%5

3 month return+55%10

YTD return+41%9

Mid term

Price vs 52wHigh91%8

1 year return+10%6

Long term

3 year return-16%2

5 year return-55%1

Risk Shield

Price Risk

Beta1.04

Volatility46%3

Free Cash Flow

Free Cash Flow Margin27%9

Free Cash Flow Yield5.8%7

Quality

ROCE31%10

Earnings Stability1010

Net Debt/EBITDA1.06

02Growth

Is it actually growing, and how fast?

PAYCPaycom Software

Revenue FY25$1.9B

GROWTH RATING↗

AVERAGE60 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+14%8

Revenue, next 1Y+8%5

Revenue, next 3Y, CAGR+8%6

Revenue, next 5Y, CAGR+7%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+44%9

EPS growth, FY27E+9%6

EPS growth, FY28E+12%7

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 14%/yr over the last 3 years, ahead of 70% of companies worldwide.8/10

Earnings are set to grow in step with sales (EPS about 12%/yr vs revenue 8%/yr).

WATCH

A mid-pack grower, ahead of 60% of companies worldwide.

Revenue is set to grow 8%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 14%/yr over the last 3 years; forecasts see it cooling to 8%/yr.

Over five years revenue is set to grow 7%/yr, ahead of 50% of companies worldwide.6/10

WEAKNESSES

None flagged.

BOTTOM LINE

Maturing Grower

A middle-of-the-pack grower that is slowing. The one thing to watch: the pace is cooling.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE51 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-4%5

3-month return+55%10

YTD return+41%9

MID & LONG-TERM▾SCORE

% of 52-week high91%8

1-year return+10%6

3-year return-16%2

5-year return-55%1

MOMENTUM ASSESSMENT

STRENGTHS

It's up 10% over the past year, but 9% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over three months (+55%) and so far this year (+41%).

WATCH

Returns sit at the market level over the past month (-4%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-16% over three years and -55% over five), behind 80% of the market.

BOTTOM LINE

Early Turnaround

A poor multi-year track record but a sharp recent rally. Momentum is turning up, yet the trend is young and unproven — it needs follow-through to confirm rather than fade. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Paycom Software, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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Loading charts…

02Growth

Is it actually growing, and how fast?

PAYCPaycom Software

Revenue FY25$1.9B

GROWTH RATING↗

AVERAGE60 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+14%8

Revenue, next 1Y+8%5

Revenue, next 3Y, CAGR+8%6

Revenue, next 5Y, CAGR+7%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+44%9

EPS growth, FY27E+9%6

EPS growth, FY28E+12%7

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 14%/yr over the last 3 years, ahead of 70% of companies worldwide.8/10

Earnings are set to grow in step with sales (EPS about 12%/yr vs revenue 8%/yr).

WATCH

A mid-pack grower, ahead of 60% of companies worldwide.

Revenue is set to grow 8%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 14%/yr over the last 3 years; forecasts see it cooling to 8%/yr.

Over five years revenue is set to grow 7%/yr, ahead of 50% of companies worldwide.6/10

WEAKNESSES

None flagged.

BOTTOM LINE

Maturing Grower

A middle-of-the-pack grower that is slowing. The one thing to watch: the pace is cooling.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE51 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-4%5

3-month return+55%10

YTD return+41%9

MID & LONG-TERM▾SCORE

% of 52-week high91%8

1-year return+10%6

3-year return-16%2

5-year return-55%1

MOMENTUM ASSESSMENT

STRENGTHS

It's up 10% over the past year, but 9% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over three months (+55%) and so far this year (+41%).

WATCH

Returns sit at the market level over the past month (-4%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-16% over three years and -55% over five), behind 80% of the market.

BOTTOM LINE

Early Turnaround

04Value

Are you paying a fair price for it?

Stop guessing on Paycom Software, Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community