Paycom Software, Inc.
$248.86
+0.02 (+0.01%) · delayed · Nov 13, 2026
Five-year price
52w $104.90 to $275.22
- Market cap
- $14.0B
- Enterprise value
- $13.6B
- P/E
- 30.8×
- 32.6× on 3y avg EPS
- EV / EBIT
- 24.0×
- FCF yield
- 2.9%
- ROIC
- 30.5%
- Debt / equity
- —
- Piotroski F
- 6/9
Value scorecard · FY2025
Does it pass the value tests?
Quality
100
- ●ROIC > 12% (5y avg)5y avg ROIC 33.7%
- ●ROE > 15% (5y avg)5y avg ROE 26.0%
- ●Stable operating marginsMargin volatility 3.2% (σ, 5y)
- ●Earnings convert to cashFCF / net income 86% (5y avg)
- ●Growing revenueRevenue CAGR 5y 19.5%
- ●Shrinking share countDiluted shares -3.7% over 5y
Value
0
- ○P/E below 15P/E 30.8
- ○EV/EBIT below 12EV/EBIT 24.0
- ○FCF yield above 6%FCF yield 2.9%
- ○Price below Graham NumberGraham Number $74.90
- ○P/B below 3P/B 8.1
Safety
75
- –Debt / equity below 0.5D/E n/a
- ●Debt payable in < 4 yrs of earningsNet debt $-0.4B
- ●Interest coverage > 8xCoverage 166.8x
- ○Current ratio > 1.5Current ratio 1.09
- ●Piotroski F-score ≥ 6F-score 6/9
Graham Defensive
43
- ●Adequate size (revenue > $2B)Revenue $2.1B
- ○Strong condition (current ratio ≥ 2)Current ratio 1.09
- ●Earnings stability (no loss, 10y)10 years of data
- ○Uninterrupted dividendsDividends paid every year on record
- ●Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 306%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 32.6
- ○P/E × P/B ≤ 22.5Product 263.2
Valuation lab
What do you have to believe?
At $248.86, the market is pricing in about 12.4% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt −$370M · 56M shares · 5y revenue CAGR 19.5%
Intrinsic value
$434.59
Price
$248.86
Margin of safety
43%
What the price implies
The market is paying for 12.4% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
70% of the value sits beyond year 10. That means the answer depends mostly on the long-run assumptions.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 329 | 433 | 566 | 738 | 841 | 1,056 | 1,375 | 1,694 | 1,883 | 2,052 |
| Gross profit | — | — | — | — | — | — | 1,163 | 1,417 | 1,549 | 1,706 |
| Operating income | 102 | 130 | 174 | 226 | 186 | 254 | 379 | 451 | 634 | 567 |
| Operating margin | 30.9% | 30.0% | 30.7% | 30.7% | 22.1% | 24.0% | 27.5% | 26.6% | 33.7% | 27.6% |
| Pre-tax income | 101 | 128 | 175 | 226 | 186 | 256 | 390 | 472 | 649 | 619 |
| Income tax | 31 | 4 | 38 | 46 | 42 | 60 | 108 | 132 | 147 | 166 |
| Net income | 70 | 123 | 137 | 181 | 143 | 196 | 281 | 341 | 502 | 453 |
| EPS (diluted) | 1.19 | 2.10 | 2.34 | 3.09 | 2.46 | 3.37 | 4.84 | 5.88 | 8.92 | 8.08 |
| Diluted shares | 59 | 59 | 59 | 58 | 58 | 58 | 58 | 58 | 56 | 56 |
Who owns it
Superinvestors
Filings wire