Reading the tape
NYSE: PAYC
Paycom Software, Inc.
Technology · Software - Application
Market Cap
$7.47B
52w High
$267.76
52w Low
$104.90
P/E
14.89
Volume
922.42K
Outstanding Shares
54.58M
Price vs Fundamentals
Why The Stock Is Moving
Likely multiple compressionModerate confidence
1Y Price: -45.11%Revenue (TTM): 9.37%FCF (TTM): 14.99%P/FCF: 3rd pct
What changed
The stock fell 45.11% over the last year. Revenue grew 9.37% over the trailing twelve months. Operating margin moved from 27.88% to 28.3%. Free cash flow grew 14.99% over the trailing twelve months.
What the market seems to be pricing
Visible fundamentals weakened far less than the stock price, and the shares now sit around the 3rd percentile of their historical P/FCF range. That looks more like a rerating of the multiple than a collapse in the business.
What would invalidate this read
This read changes if operating margin (currently 28.3%) continues to decline, or if revenue growth turns negative. The bull case requires the business to hold its current trajectory.
Company profile
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.
CEOChad R. Richison
SectorTechnology
IndustrySoftware - Application
Employees5,770
IPO dateApr 15, 2014
Valuation
Forward P/E—
EV/EBITDA10.86
Enterprise value$8.67B
Stock splits
No stock splits recorded for this ticker.
Profitability & growth
Revenue growth7.8%
Gross margin79.74%▼4.43%vs FY2024
Operating margin28.3%▼17.92%vs FY2024
ROE26.19%▼17.80%vs FY2024
Analyst consensus
RatingHold
Target price$151.75▲10.87%
17
Buy
18
Hold
1
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Aug 5, 2026
Q3 FY26 · EPS est $2.38 · Revenue est $513.09M
View
Dividends
$1.50/shareQuarterlyEx-div May 26, 2026 · in 15dSafePAYC pays a dividend with a 1.1% declared yield, covered 4.8× by free cash flow.
Declared Yield
1.1%
Annual Div / Share
$1.50
CAGR
—
Payout Ratio
17.33%
Safe
Dividend Growth Rate
Dividend Safety
10/10Safe
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2026$1.50+0.0%
2025$1.50+0.0%
2024$1.50—
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$11/yr
$1/mo
In 5 yrs
$11/yr
$1/mo
In 10 yrs
$11/yr
$1/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$11/yr $1/mo | $11/yr $1/mo | $11/yr $1/mo |
Analysis
Dividend Strengths
Well-covered by free cash flow
The dividend is covered 4.8× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.
Risks to Watch
No strong risk signal stands out from the latest period pair.