Is Paycom Software (PAYC) overvalued or fairly valued?

MarketChacha shows Paycom Software's valuation in context — a trailing P/E of about 15.3, a forward P/E of about 11.3, a price-to-book of about 7.8 — alongside its revenue and profit growth and whether reported profit converts into operating cash, so you can judge value for yourself. MarketChacha does not issue ratings, price targets, or buy/sell advice.

Does Paycom Software's reported profit turn into cash?

Over 3 years, operating cash flow fully covered reported profit — earnings are backed by real cash. MarketChacha computes this cash-conversion check (1.31×) from reported figures — education, not a rating.

What is Paycom Software's revenue?

Paycom Software reported revenue of $2.1B for FY2025, with net profit of $453.4M, per official filings.

What is the share price of Paycom Software (PAYC)?

Paycom Software last traded at $138.70 (-3.8% on the day), as of 7/22/2026 — a delayed quote shown for education, not investment advice.

Paycom Software

PAYC · NYSE · Industrials · United States

$138.70-3.8%

Delayed · as reported by Yahoo Finance · as of Jul 22, 2026, 7:31 PM

Snapshot

TickerPAYC

ExchangeNYSE

SectorIndustrials

IndustrySoftware - Application

CountryUnited States

Employees5,770

HeadquartersOklahoma City, United States

Market cap$6.5B

P/E (TTM)15.3

P/B7.8

Volume310.52K

Websitewww.paycom.com

Filings tracked7

About Paycom Software

Paycom Software, Inc. provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. The company offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company's HCM solution offers payroll applications comprising better employee transaction interface, payroll and payroll tax management, payroll card, Everyday, Paycom pay, Client Action Center, expense management, garnishment administration, and GL concierge applications; talent acquisition, including applicant tracking, background checks, on-boarding, e-verify, and tax credit services; and talent management applications that include employee self-service, compensation budgeting, performance management, position management, Paycom learning, certification management. The company also offers time and labor management, such as time and attendance, scheduling, time-off requests, and labor allocation solutions. Its HCM solution provides manager on-the-go that gives supervisors and managers the ability to perform a variety of tasks, such as approving time-off requests and expense reimbursements; direct data exchange; ask here, a tool for direct line of communication to ask work-related questions; document and checklist; government and compliance; benefits administration; COBRA administration; personnel action and performance discussion forms; Paycom surveys; retirement reporting; report center; and affordable care act applications, as well as Clue, which securely collects, tracks, and manages the vaccination and testing data of the workforce; and MyCom is a communications tool that provides organizations with a central place to share information with employees. Paycom Software, Inc. was founded in 1998 and is based in Oklahoma City, Oklahoma.

Profile as reported by Yahoo Finance.

Who owns it

Insiders13.8%
Institutions86.2%
Public & other0.0%

834 institutional holders

As reported by Yahoo Finance.

Top holders

Blackrock Inc.12.68%
Harris Associates L.P.6.84%
Vanguard Portfolio Management LLC5.02%
Vanguard Capital Management LLC4.42%
Two Sigma Investments, LP3.67%
State Street Corporation3.63%
BAILLIE GIFFORD & CO3.23%
Geode Capital Management, LLC2.78%

Largest institutional holders, as reported by Yahoo Finance (as of 3/31/2026).

Forensic scorecard

No major accounting red flags in the fundamentals we have — profit is backed by cash and returns look healthy.

Cash conversion1.31×

Over 3 years, operating cash flow fully covered reported profit — earnings are backed by real cash.

Net margin trend20.1% → 22.1%

Margin has expanded by about 2.0 points — the business is getting more profitable.

Return on equity26.2%

Latest ROE of 26.2% — capital is generating a healthy return.

Growth qualityrev 10% · PAT 15%

Profit growth is broadly tracking revenue growth — the earnings trend looks operational rather than one-off.

Computed by MarketChacha from reported figures (SEC XBRL). Education, not a rating or recommendation.

What's expected next

Next quarter

Rev $528.4M · EPS 2.39

Est. earnings growth +23.3%

Next fiscal year

Rev $2.3B · EPS 12.28

Est. earnings growth +12.5%

Analyst consensus estimates — not the company's own guidance. As reported by Yahoo Finance.

$104.9052-wk range$248.95

Delayed · as reported by Yahoo Finance

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Financials at a glance

Source: SEC XBRL

Annual

Quarterly · last 8

Market cap

$6.5B

Day change

-3.8%

P/E (TTM)

15.3

Fwd P/E

11.3

P/B

7.8

Div yield

1.04%

Beta

0.80

Revenue (FY2025)

$2.1B

Net margin

22.1%

ROE

26.2%

Revenue CAGR (2y)

+10.1%

Profit CAGR (2y)

+15.3%

EPS (FY2025)

8.08

Net profit (FY2025)

$453.4M

Market figures: Delayed · as reported by Yahoo Finance. Financials as reported in company filings.

Ask MarketChacha about PAYC

Get a cited, plain-English answer — the “why”, not just data. Finance research only, never buy/sell advice.

Financials

Yearly

Period	Revenue	Net profit	EPS	Net margin	ROE
FY2025	$2.1B	$453.4M	8.08	22.1%	26.2%
FY2024	$1.9B	$502.0M	8.92	26.7%	31.9%
FY2023	$1.7B	$340.8M	5.88	20.1%	26.2%

Quarterly

Period	Revenue	Net profit	EPS	Net margin
2026Q1	$571.9M	$155.7M	3.04	27.2%
2025Q3	$493.3M	$110.7M	1.96	22.4%
2025Q2	$483.6M	$89.5M	1.58	18.5%
2025Q1	$530.5M	$139.4M	2.48	26.3%
2024Q3	$451.9M	$73.3M	1.31	16.2%
2024Q2	$437.5M	$68.0M	1.20	15.5%
2024Q1	$499.9M	$247.2M	4.37	49.4%
2023Q3	$406.3M	$75.2M	1.30	18.5%
2023Q2	$401.1M	$64.5M	1.11	16.1%
2023Q1	$451.6M	$119.3M	2.06	26.4%

Figures as reported, in reporting currency. Source: SEC XBRL.

Filings & announcements

2026

8-K — Executive/director change, Reg FD disclosure, Exhibits
SEC7/9/2026material
8-K — Shareholder vote results
SEC5/7/2026material
10-Q filing
SEC5/7/2026
8-K — Results of operations, Exhibits
SEC5/6/2026material
8-K — Other events, Exhibits
SEC5/4/2026material
8-K — Material agreement, Material financial obligation, Exhibits
SEC4/23/2026material
8-K — Executive/director change
SEC3/26/2026material

In the news

Education and discussion only — not investment advice. Financials from official filings (SEC/BSE) and reported company statements; market figures (delayed · as reported by yahoo finance) are delayed and shown for reference only. Verify with the linked sources before acting.