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Paycom Software Inc

Paycom Software Inc

PAYC
$147.94USD↓-1.69%-2.54 today

MARKET CAP

7.0B

P/E (TTM)

15.4x

FWD P/E

12.6x

DAY RANGE

$145 – $153

52W RANGE

$105
$249

AI Summary

Stalk
StalkMedium

Under the High Quality Dislocated Assets strategy, PAYC remains in a Stage 2 advance within a broader secular downtrend, but the recent momentum breakout has left price extended and overbought near the declining 200 DMA. Given exhaustion signals and elevated overbought context, tactical entries are premature; favor pullbacks into the rising 9/21 EMAs or the breakthrough zone for higher-probability engagement.

  • ↑Q1 revenue $572M (+8% YoY) and EPS $3.15 vs $2.99 est.
  • ↑Recurring revenue $544M (+9% YoY) with 48.2% adj. EBITDA margin.
  • ↓Negative earnings yield suggests valuation above profit levels.
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The case for & against

Bull & Bear analysis

Bullish

Paycom Software, Inc. (NYSE: PAYC) is a leading provider of cloud-based human capital management (HCM) software, specializing in payroll and HR technology automation. The company operates within the HR technology sector, characterized by strong momentum towards automation and enhanced client experiences. Paycom currently serves approximately 5% of its total addressable market, suggesting significant growth potential as it continues to enhance product offerings, particularly through their proprietary automation tools like IWANT and Betty.

Bull says

  • ↑Q1 revenue $572M (+8% YoY) and EPS $3.15 vs $2.99 est.
  • ↑Recurring revenue $544M (+9% YoY) with 48.2% adj. EBITDA margin.
  • ↑8.4M shares bought back (15% of float) under $2B authorization.
  • ↑IWANT AI tool first in industry, boosting client engagement.
  • ↑Strong upward revisions trend amid robust profitability and liquidity.
  • ↑<5% TAM penetration offers significant market share runway

Bear says

  • ↓Negative earnings yield suggests valuation above profit levels.
  • ↓Revenue guidance of $2.175–$2.195B hints at growth deceleration.
  • ↓91% client retention still leaves churn risk if needs unmet.
  • ↓Macro volatility and interest rates could dampen client spend.
  • ↓Intense rival innovation may erode Paycom’s client base.
  • ↓Weak momentum and growth factors point to limited upside

Investment themes with PAYC

SPY↑ +0.09%

NVDA · AAPL · GOOGL
Others↑ +0.32%

Miscellaneous or uncategorized companies

ATAI · SVIX · SVXY

Earnings Call · Q1 2025 · Mgmt. Guidance

Updated 06-08-2026bullish

Transcript signals

Bull points

  • We are executing very well and delivering strong ROI for our clients as they are experiencing the benefits of our full solution automation strategy.
  • Recent product enhancements and client focused initiatives are driving positive trends across our client usage metrics, and our net promoter score increased another 16 points year over year.
  • According to a Forrester study, GON's automation delivers an ROI of up to 800% for clients.

Bear points

  • Rate cuts in 2024 represented a headwind to interest on funds held for clients, which declined 10% year over year to approximately $31 million in the first quarter of 2025.
  • Our expectation for interest on funds held for clients remains unchanged at approximately $110 million in 2025, down 12% year over year.
Read full transcript analysis ›