Paycom Software Inc (PAYC) Stock Analysis
Verdict: HOLD
Beti payroll automation defends 80.1% gross margins, but top-line deceleration to 9.4% and a price above consensus limit near-term upside.
Investment score: 61/100
Analysis as of
Is Paycom Software Inc stock worth reviewing? AI model thesis
The model rates Paycom Software as HOLD. While 80.1% gross margins and Q2 EPS outperformance ($2.78 vs $2.42 est) demonstrate strong operational efficiency, top-line revenue growth has normalized to 9.37%, and current share price ($238.66) trades past analyst consensus ($201.18).
7-factor investment score
- Valuation: 55/100 (weight 20%)
- Financial Health: 78/100 (weight 15%)
- Technical Momentum: 80/100 (weight 15%)
- Earnings Quality: 68/100 (weight 15%)
- Insider Sentiment: 30/100 (weight 10%)
- Analyst Consensus: 50/100 (weight 10%)
- Risk-Adjusted Return: 55/100 (weight 15%)
Paycom Software Inc opportunities and risks
What speaks for PAYC
- Beti payroll automation adoption expands margin leverage
What speaks against PAYC
- Structural deceleration in top-line revenue growth
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| PAYC | 25.2x | 5.0x | 12.8x | 80.1% | 22.8% | 7.0% |
| ADP | 26.0x | 5.2x | 18.1x | 48.2% | 20.1% | 4.4% |
| PAYX | 25.8x | 6.9x | 16.1x | 74.3% | 27.0% | 5.2% |
| PCTY | 31.5x | 4.8x | 16.6x | 69.2% | 15.2% | 5.3% |
| RHI | 39.1x | 0.9x | 30.2x | 36.8% | 2.2% | 4.7% |
| KFY | 15.8x | 1.5x | 7.5x | 25.6% | 9.4% | 7.5% |
| Peer median | 26.0x | 4.8x | 16.6x | 48.2% | 15.2% | 5.2% |
Frequently asked questions about Paycom Software Inc (PAYC)
Is PAYC stock a good investment?
The cached TradeMates AI model rates Paycom Software Inc as HOLD with an investment score of 61/100. The model rates Paycom Software as HOLD. While 80.1% gross margins and Q2 EPS outperformance ($2.78 vs $2.42 est) demonstrate strong operational efficiency, top-line revenue growth has normalized to 9.37%, and current share price ($238.66) trades past analyst consensus ($201.18). This is algorithmic model output, not personal investment advice.
Is PAYC stock a buy?
The TradeMates model verdict for PAYC is HOLD with an investment score of 61/100. Treat this as a model signal to review, not a personal buy recommendation.