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Description
Paycom Software, Inc. provides a comprehensive, cloud-based HCM solution delivered as Software-as-a-Service (‘SaaS’).
The company provides functionality and data analytics that businesses need to manage the complete employment lifecycle, from recrui…
Analysis
Quality compounder
Paycom Software, Inc. earns the quality_compounder label: good underlying economics priced fairly, with no obvious bargain or excess. Worth noting: the cash the business generates has lagged behind what the income statement shows.
On valuation, the picture is fair. The owner-earnings multiple stands at 21.7×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 7% a year, against analyst forecasts of 13%. The price, in other words, assumes less than the experts do.
Growth is moderate; the safety picture is sturdy. The company scores 12/20 on our value-creation score: creating some value. Analysts lean positive.
Flags to be aware of: The financial cushion is thinner than comfortable. Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.
360° rank · history
1007550250
Jan 202395
66
2023202420252026
All-time high
100
Jan 2025
All-time low
66
Jun 2026
Average rank
87
across all years
Detailed & Historical Ranks
Deep dive into 15 detailed ranks and 3 years of history.
Current202520242023
Price/Sales
58
30
23
11
Price/Earnings
76
68
68
61
Price/Book
36
45
41
20
Dividend Yield
93
92
92
1
Value (overall)
90
87
82
25
Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.