Paycom: Solid Earnings, Expanding Margins, And Attractive Valuation
Paycom Software, Inc. looks undervalued after strong Q3 2026 earnings, recurring revenue growth, and AI adoption. Read why ...
Model output · Signal date 2026-11-06
Paycom Software, Inc. (PAYC) Stock Forecast Nov. 6, 2026
Analysis updated on Nov. 6, 2026 (UTC) · Alpha · vs marketSwitch to Total · NYSE
Rating · 90D
Unlock rating and forecasts
90-day forecast
Sign up free to reveal
30-day forecast
Alpha
Rank in coverage
of 5150 stocks scored
Rank correlation · 90D
75.0%
Spearman, 357 dates
Market Cap
$11.27B
large-cap · #37 of 60 peers
Summary
Paycom Software, Inc. (PAYC) stock forecast summary
Our AI scores Paycom Software, Inc. every trading day against every stock it covers. Create a free account and follow it to see its rating and price target.
Paycom Software, Inc. is a large-cap company with a market capitalization of $11.27B. It ranks number 37 by market capitalization among the 60 Services-Prepackaged Software issuers in our coverage with a current forecast.
For PAYC, the Spearman rank correlation between our 90-day forecasts and the returns that followed is 75.0%, measured on 357 forecast dates between 2022-08-19 and 2026-08-07 on this stock's own recent history. A rank correlation runs from -100% to +100%: it measures whether higher forecasts were followed by higher returns, and a value near zero or below means the model has shown little skill on this stock. On the 30-day forecasts the same correlation is 46.0%, measured on 400 forecast dates between 2022-08-19 and 2026-10-07. Across our coverage, the out-of-sample test on 4629 stocks from 2025-01-06 to 2026-08-04 produced a positive net return in 92.9% of rebalance periods (factor-neutral book, net of estimated costs). Full backtest report
Expected return relative to the market over the horizon: a positive alpha means the model expects the stock to beat the market, whatever the market does. Ratings: strong buy ≥ +3.1%, buy ≥ +1.5%, sell < -0.5%, strong sell < -1.8% (top 15%, next 20%, middle 30%, next 20%, bottom 15% of the 2026-11-06 signals)
A free account shows the exact forecast, rating and rank of 3 tickers you follow, PAYC included.
Price
PAYC price chart and AI forecast
Cross-section · 2026-11-06
How PAYC ranks among 5150 stocks
90D Alpha forecasts of every company scored, cut into five relative ratings at the 15th, 35th, 65th and 85th percentiles (dashed lines).
Fundamentals · 2026-09-30
Paycom Software, Inc. (PAYC) fundamentals
Trailing twelve months. The industry median and the rank (1 = highest) are taken over the Services-Prepackaged Software peers listed below that report each metric.
Valuation & Market
| Metric | PAYC | Rank |
|---|---|---|
| Market Cap | $11.27B | 37/60 |
| P/E Ratio | 23.97x | 28/40 |
| P/B Ratio | 15.93x | 8/51 |
| Dividend Yield | 0.65% | 6/7 |
| EPS | $10.43 | – |
| Book Value/Share | $15.69 | – |
| Revenue/Share | $52.43 | – |
| FCF/Share | $14.62 | – |
Profitability & Margins
| Metric | PAYC | Rank |
|---|---|---|
| ROE | 72.1% | 3/42 |
| ROA | 8.4% | 18/44 |
| ROIC | 37.6% | 6/53 |
| Gross Margin | 85.1% | 7/55 |
| Operating Margin | 31.0% | 9/58 |
| Net Margin | 21.6% | 13/46 |
| EBT Margin | 30.3% | 10/58 |
| Tax Rate | 28.8% | – |
Financial Health
| Metric | PAYC | Rank |
|---|---|---|
| Current Ratio | 1.06x | 42/57 |
| Quick Ratio | 1.06x | 8/8 |
| D/E Ratio | 7.61x | 4/52 |
| Financial Leverage | 8.61x | 4/51 |
| Interest Coverage | 16.7x | 19/47 |
| Working Capital | $248M | 39/57 |
Cash Flow
| Metric | PAYC | Rank |
|---|---|---|
| Operating Cash Flow | $810M | 27/58 |
| Free Cash Flow | $659M | 21/49 |
| Capital Spending | -$151M | 38/49 |
| OCF Growth YoY | 25.9% | 30/51 |
| FCF Growth YoY | 67.1% | 7/43 |
| FCF/Sales | 27.9% | 20/49 |
| CapEx/Sales | 6.4% | 6/49 |
Operational Efficiency
| Metric | PAYC | Rank |
|---|---|---|
| Asset Turnover | 0.39x | 39/49 |
| Receivables Turnover | 42.0x | 2/49 |
| Inventory Turnover | 167.4x | 2/7 |
| Fixed Assets Turnover | 4.0x | 44/48 |
| Days Sales Outstanding | 9 days | 48/49 |
| Days Inventory | 2 days | 6/7 |
| Payables Period | 22 days | 32/52 |
| Cash Conversion Cycle | -11 days | 4/5 |
Income Statement
| Metric | PAYC | Rank |
|---|---|---|
| Total Revenue | $2.36B | 29/52 |
| Operating Income | $732M | 17/58 |
| Net Income | $510M | 15/46 |
| R&D Expense | $223M | 50/58 |
| SG&A Expense | $1.11B | 42/57 |
| Cost of Goods Sold | $352M | 40/56 |
Dividend & Shareholder Information
| Metric | PAYC | Rank |
|---|---|---|
| Dividends Per Share | $1.62 | – |
| Payout Ratio | 15.5% | 7/7 |
| Shares Outstanding | 45M | – |
| Net Income Growth | 12.6% | 16/30 |
| EPS Growth | 29.4% | 16/36 |
Balance Sheet Highlights (USD millions)
| Total Current Assets | $4.39B | 72.1% of assets |
| Cash & Short-term Investments | $194M | 3.2% of assets |
| Accounts Receivable | $56M | 0.9% of assets |
| Inventory | $2M | 0.0% of assets |
| Total Liabilities | $5.38B | 88.4% of assets |
| Short-term Debt | $4.12B | 67.7% of assets |
Quarterly Financial Reports
PAYC quarterly financials and insider trading
Industry Peers · Services-Prepackaged Software
Paycom Software, Inc. (PAYC) industry peers
Companies classified under the same SEC industry code as Paycom Software, Inc. (Services-Prepackaged Software): 60 common-stock issuers with a forecast this week, one row per issuer, largest first. This is a classification match, not a curated list of competitors.
Reveal all forecasts · See exact % predictions for all competitors
Sign up free| Company | 90-Day AI Forecast (Alpha) | Market Cap |
|---|---|---|
| PAYC Paycom Software, Inc. | $11.27B | |
| MSFT Microsoft Corp | $3.94T | |
| PLTR Palantir Technologies Inc. | $385.38B | |
| ORCL Oracle Corp | $351.06B | |
| SAP Sap Se | $286.79B | |
| CRWD Crowdstrike Holdings, Inc. | $222.09B | |
| SHOP Shopify Inc. | $191.59B | |
| CRM Salesforce, Inc. | $175.83B | |
| NET Cloudflare, Inc. | $95.00B | |
| ADBE Adobe Inc. | $93.14B | |
| CDNS Cadence Design Systems Inc | $87.78B | |
| SNPS Synopsys Inc | $84.38B | |
| NTES Netease, Inc. | $82.37B | |
| DDOG Datadog, Inc. | $64.29B | |
| ADSK Autodesk, Inc. | $54.70B | |
| XYZ Block, Inc. | $50.49B | |
| VEEV Veeva Systems Inc | $49.18B | |
| TTWO Take Two Interactive Software Inc | $40.18B | |
| TEAM Atlassian Corp | $38.90B | |
| RBLX Roblox Corp | $35.28B | |
| TWLO Twilio Inc | $31.26B | |
| OKTA Okta, Inc. | $29.49B | |
| CRWV Coreweave, Inc. | $25.59B | |
| MDB Mongodb, Inc. | $25.20B | |
| RBRK Rubrik, Inc. | $21.92B | |
| PTC Ptc Inc. | $21.12B | |
| SSNC Ss&C Technologies Holdings Inc | $18.24B | |
| GEN Gen Digital Inc. | $17.67B | |
| TYL Tyler Technologies Inc | $17.11B | |
| NTNX Nutanix, Inc. | $15.79B | |
| CHKP Check Point Software Technologies Ltd | $15.22B | |
| MANH Manhattan Associates Inc | $14.82B | |
| BSY Bentley Systems Inc | $13.49B | |
| GWRE Guidewire Software, Inc. | $13.23B | |
| DT Dynatrace, Inc. | $12.55B | |
| FROG Jfrog Ltd | $12.45B | |
| PCOR Procore Technologies, Inc. | $11.45B | |
| SAIL Sailpoint, Inc. | $10.97B | |
| FIG Figma, Inc. | $10.03B | |
| HUBS Hubspot Inc | $10.00B | |
| PCTY Paylocity Holding Corp | $9.19B | |
| ESTC Elastic N.V. | $9.04B | |
| NTSK Netskope Inc | $8.70B | |
| APPF Appfolio Inc | $8.18B | |
| DSGX Descartes Systems Group Inc | $8.09B | |
| GTLB Gitlab Inc. | $8.01B | |
| DBX Dropbox, Inc. | $7.82B | |
| TTAN Servicetitan, Inc. | $7.80B | |
| S Sentinelone, Inc. | $7.58B | |
| DUOL Duolingo, Inc. | $7.51B | |
| GLBE Global-E Online Ltd. | $7.26B | |
| ZETA Zeta Global Holdings Corp. | $7.26B | |
| PATH Uipath, Inc. | $6.78B | |
| QLYS Qualys, Inc. | $6.59B | |
| CVLT Commvault Systems Inc | $6.48B | |
| NAVN Navan, Inc. | $6.33B | |
| KVYO Klaviyo, Inc. | $5.90B | |
| NICE Nice Ltd. | $5.80B | |
| BOX Box Inc | $5.76B | |
| OCTV Octave Intelligence Plc | $5.63B |
Where PAYC sits on the market map
Technology · Services-Prepackaged Software
News
Paycom Software, Inc. (PAYC) stock news
Paycom Software gears up to report Q3 earnings: What's in store?
Paycom Software, Inc. PAYC is set to report third-quarter 2026 results on Nov. 4, after market close. The Zacks Consensus ...
Paycom Software, Inc. (PAYC) Q4 2025 Earnings Call Transcript
Good afternoon. My name is Cameron, and I will be your conference operator today. At this time, I would like to welcome everyone to Paycom's Fourth Quarter and Year-end 2025 Financial Results ...
FAQ
Paycom Software, Inc. (PAYC) stock forecast FAQ
What is the Paycom Software, Inc. (PAYC) stock forecast?
Our AI scores Paycom Software, Inc. every trading day against every stock it covers. Create a free account and follow it to see its rating and price target.
How accurate are Paycom Software, Inc. stock predictions?
For PAYC, the Spearman rank correlation between our 90-day forecasts and the returns that followed is 75.0%, measured on 357 forecast dates between 2022-08-19 and 2026-08-07 on this stock's own recent history. A rank correlation runs from -100% to +100%: it measures whether higher forecasts were followed by higher returns, and a value near zero or below means the model has shown little skill on this stock. On the 30-day forecasts the same correlation is 46.0%, measured on 400 forecast dates between 2022-08-19 and 2026-10-07. Across our coverage, the out-of-sample test on 4629 stocks from 2025-01-06 to 2026-08-04 produced a positive net return in 92.9% of rebalance periods (factor-neutral book, net of estimated costs). Full backtest report
How often are Paycom Software, Inc. forecasts updated?
Paycom Software, Inc. forecasts are refreshed on trading days as the daily model run completes. The forecast on this page was produced on Nov. 6, 2026.
Which companies are Paycom Software, Inc.'s industry peers?
60 issuers in our coverage, PAYC included, share the SEC industry code Services-Prepackaged Software. The largest are: Microsoft Corp (MSFT), Palantir Technologies Inc. (PLTR), Oracle Corp (ORCL), Sap Se (SAP), Crowdstrike Holdings, Inc. (CRWD), Shopify Inc. (SHOP).
This analysis is generated automatically using our proprietary AI systems and should not be considered personalized investment advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a financial advisor before making investment decisions.