Paycom
PAYC
$219.16
-5.40%
Paycom Software, Inc. is a leading provider of cloud-based human capital management (HCM) software, offering a unified platform for payroll, talent management, HR, and compliance solutions to mid-market and enterprise clients. The company differentiates itself through its single-database architecture and employee self-service tools, positioning it as a niche disruptor in the HCM space. Currently, investor attention is focused on Paycom's recent acceleration in revenue growth and stock price surge, driven by successful product adoption and operational efficiency, despite earlier concerns about AI-related headwinds and slowing growth. The company's strong financial performance and strategic positioning have sparked renewed optimism among investors, as reflected in its robust market cap and positive analyst sentiment.…
PAYC
Paycom
$219.16
Related headlines
PAYC 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Paycom's 12-month outlook, with a consensus price target around $216.56 and implied upside of -1.2% versus the current price.
Average Target
$216.56
0 analysts
Implied Upside
-1.2%
vs. current price
Analyst Count
—
covering this stock
Price Range
$160 - $285
Analyst target range
Paycom is covered by 16 analysts, with a consensus recommendation of 'Buy' and a mean rating of 2.45 (where 1 is Strong Buy and 5 is Sell). The average target price is $216.56, which implies a downside of -6.5% from the current price of $231.67. The distribution of ratings is not provided, but the consensus leans bullish, with recent actions from firms like Guggenheim and BTIG reiterating Buy ratings, while others maintain Neutral or Equal Weight stances. This mixed sentiment reflects a cautious optimism, as the stock has already rallied significantly, potentially limiting near-term upside.
PAYC Technical Analysis
Paycom's stock has demonstrated a robust recovery and is currently in a strong uptrend, with a 1-year price change of +3.19% and a 3-month change of +68.34%. The stock is trading at $231.67, which is 94.5% of its 52-week range (low: $104.90, high: $244.98), indicating it is near the upper end of its yearly range, a sign of strong momentum and investor confidence. This positioning suggests the stock is in a bullish phase, though it may be approaching overbought conditions given its proximity to the 52-week high.
Beta
0.79
0.79x market volatility
Max Drawdown
-51.4%
Largest decline past year
52-Week Range
$105-$245
Price range past year
Annual Return
-2.3%
Cumulative gain past year
| Period | PAYC Return | S&P 500 |
|---|---|---|
| 1m | +2.0% | -0.9% |
| 3m | +60.3% | +5.6% |
| 6m | +73.1% | +15.0% |
| 1y | -2.3% | +18.1% |
| ytd | +43.8% | +12.3% |
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PAYC Fundamental Analysis
Paycom's revenue trajectory has been solid, with the most recent quarter (Q4 2025) reporting revenue of $544.3 million, a 10.21% year-over-year increase. Over the past four quarters, revenue has grown from $483.6 million in Q2 2025 to $544.3 million in Q4 2025, indicating a steady acceleration. The company's recurring revenue segment, which constitutes the bulk of total revenue, continues to drive growth, while implementation and other revenue remains a smaller contributor. This consistent growth underscores the resilience of Paycom's subscription-based model and its ability to expand its client base.
Quarterly Revenue
$544300000.0B
2025-12
Revenue YoY Growth
+10.2%
YoY Comparison
Gross Margin
79.1%
Latest Quarter
Free Cash Flow
$406100000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is PAYC Overvalued?
Given Paycom's positive net income, the PE ratio is the most appropriate valuation metric. The trailing PE is 19.60, while the forward PE is 16.61, implying that the market expects earnings growth of approximately 18% over the next year. This forward discount suggests that analysts anticipate continued earnings expansion, which is supported by the company's strong operating performance and revenue growth. The gap between trailing and forward PE indicates that the market is pricing in future profitability improvements, making the stock attractive relative to its earnings potential.
PE
19.6x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 11x~124x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
10.9x
Enterprise Value Multiple