Paycom Software, Inc. (PAYC) Stock

Paycom Software, Inc. (PAYC) is a Technology stock trading at $226.63 (as of 2026-08-20), with a market capitalization of $10.21B and a trailing P/E of 22.0. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Paycom Software, Inc. offers a cloud-based human capital management platform delivered via software-as-a-service. The system supports modules for recruiting and onboarding, time and labor management, payroll and tax-related functions, and talent management, serving small- to mid-sized employers in the United States.

Understand Paycom Software, Inc.: how it makes money

Paycom provides cloud-based human capital management software (HCM) delivered as software-as-a-service for small to mid-sized companies, helping manage hiring, time and labor, and the employee life cycle, and it makes money primarily through recurring subscription revenue tied to clients using its modules and applications.

Paycoms profit model is anchored in recurring, retained HCM subscriptions (Annual Revenue Retention Rate is 91%), with expansion and productivity tied to clients adopting and buying more product modules (for example, Betty adoption, paid modules, and clients embracing Betty).

Business quality (Exceptional): Strong retention and recurring revenue underpin high margins, but growth execution depends on ongoing client adoption of additional modules and products.

Valuation: Trades at 15× trailing earnings · $6B market cap.

Bull case

Retention supports revenue durability: Annual Revenue Retention Rate is 91%, indicating clients continue to stay with the platform over time.
Recurring revenue is a large share of total revenue: Recurring Revenue is 0.45 USD_B, and Recurring and Other Revenue is 0.54 USD_B, supporting a repeatable revenue stream.
Module and product adoption can drive incremental growth: Betty adoption exists alongside a broader platform, with Percent of Current Clients on Betty at 50% and Clients Embracing Betty at 10000, and Number of Paid Modules at 29.

Bear case

Revenue durability is sensitive to retention: If Annual Revenue Retention Rate declines from the current 91%, the recurring revenue base could weaken.
Adoption of key product areas is not universal yet: Only 50% of current clients are on Betty, with Betty Adoption Rate at 40%, so future growth may require converting the remaining client base to additional product usage.
Sales momentum may matter for new adoption and client adds: Client expansion linked to products shows measurable activity (Clients Added to Betty at 3000, Sales Teams at 55, and Sales Representatives Placed in the Field (Latest Class) at 67), so any slowdown in sales execution could impact net additions.

Valuation — source: SEC EDGAR (first-party)
Price	$226.63
Market Cap	$10.21B
P/E Ratio	22.0
EV / EBITDA	11.4
Price / Book	17.87
Price / Sales	4.91
FCF Yield	8.5%
DCF Value (model)	$180.68
DCF Upside vs Price	-20.3%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$2.05B
Net Margin	22.1%
Revenue Growth (YoY)	9.8%
EPS Growth (YoY)	47.2%
FCF Growth (YoY)	-7.5%

Financial Health — source: SEC EDGAR
Altman Z-Score	2.26 (grey)

Valuation vs Sector & Industry
Stock P/E	22.0
Sector P/E (Technology)	33.9
Industry P/E (Business Services)	30.0
vs Sector	-35.0%
vs Industry	-26.4%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($890.73M)
Institutional Holders Tracked	10
Congressional Trades (recent)	10

Company
Sector	Technology
Industry	Business Services
CEO	Chad R. Richison
Employees	7,306
Country	US
IPO Date	2014-04-15

Related Companies (Business model: SaaS / Subscription Software (Enterprise); 8 closest by market cap; US-domiciled)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.