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US payroll and human capital management software company selling a single-database HR/payroll platform directly to employers.
US payroll and human capital management software company selling a single-database HR/payroll platform directly to employers.
Charges employers recurring fees each pay period, scaled by headcount, and earns some interest on client funds held between collecting payroll taxes and paying them, so revenue tracks employment as well as new client wins. It sells through its own direct salespeople rather than resellers. Founder Chad Richison is chief executive and a major shareholder.
Moat: narrow (switching costs, installed base). Single-database HCM platform embedded in payroll operations creates real switching costs, though bookings growth has slowed.
Headquarters: Oklahoma City, Oklahoma, US · Founded: 1998 · Employees: 5,770
Size Paycom Software (PAYC) is a United States Information Technology company (Packaged Software) with a market value of $10.5B, the 749th largest of 3,117 United States companies the cockpit tracks. Shares closed at $237.32 on 6 Nov 2026.
Performance Over six months the shares gained 73.4%, against +12.8% for the median peer and -1.1% for the United States market (cap-weighted) — 3rd highest of 21 in its peer set.
Growth Revenue grew 9.2% over the last twelve months (peer median +19.1%); the operating margin is 30.3% (peer median 11.2%).
Valuation It trades at 15.9× forward earnings against a peer median of 31.3× (4th cheapest of 19).
Price implies For today's price to make sense, revenue must grow about 3% a year for seven years (Req g). Recent delivered growth is +20%, so the hurdle is -16 pp: the price already allows for a slowdown.
Capital Return on invested capital runs 34.3 points above its cost of capital (8.4% WACC).
Short interest Short interest is 5.6% of the free float (15 Oct 2026).
Next results Next results expected around 10 Feb 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | $2.14B | $2.05B | $1.88B | $1.69B | $1.38B |
| Revenue growth | — | +9% | +11% | +23% | — |
| Gross profit | $1.59B | $1.46B | $1.34B | $1.25B | $1.03B |
| EBITDA | $942M | $896M | $910M | $673M | $558M |
| Net income | $488M | $453M | $502M | $341M | $281M |
| Free cash flow | $567M | $408M | $341M | $292M | $232M |
| Capital expenditure | $231M | $275M | $197M | $197M | $137M |
| Total debt | $983M | $90.3M | $83.4M | $75.9M | $70.0M |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Paycom Software PAYC | $10.5B | +73% | +9% | 30% | 15.9× | 3.3% |
| Automatic Data Processing ADP | $120B | +44% | +6% | 27% | 24.0× | 6.6% |
| Paylocity PCTY | $9.03B | +56% | +11% | 22% | 19.0× | 2.3% |
| Workday WDAY | $46.5B | +51% | +14% | 13% | 16.0× | 19.7% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | PAYC | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +3.2% | -3.7% | 9th highest of 21 |
| 6-month return | +73.4% | +12.8% | 3rd highest of 21 |
| Distance from 52-week high | -13.8% | -25.2% | 7th highest of 21 |
| Revenue growth (TTM) | +9.2% | +19.1% | 4th lowest of 21 |
| Operating margin | 30.3% | 11.2% | 5th highest of 21 |
| Forward P/E | 15.9× | 31.3× | 4th cheapest of 19 |
| Growth the price implies (Req g, 7 yrs) | 3.3% | 19.9% | 4th least demanding of 20 |
| Growth delivered (Del g) | +19.5% | +23.5% | 7th lowest of 20 |
| Hurdle (Req g minus delivered) | -16.2 pp | -3.7 pp | 5th least demanding of 20 |
| ROIC minus cost of capital | +34.3 pp | -1.9 pp | 3rd highest of 18 |
| EV / EBITDA | 11.8× | 18.7× | 2nd cheapest of 12 |
| Net debt / EBITDA | 0.8× | -1.4× | 4th most indebted of 14 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Paycom Software PAYC | United States | $10.5B | +73% | +9% | 30% | 15.9× | 3.3% | +19.5% |
| Wisetech Global WTC.AX | Australia | $10.3B | +15% | +71% | 31% | 32.6× | 30.1% | +32.3% |
| SailPoint SAIL | United States | $11.0B | +57% | +20% | -19% | 53.5× | 42.0% | +24.7% |
| Capcom 9697.T | Japan | $11.0B | +25% | +21% | 41% | 27.0× | -2.2% | +15.4% |
| Figma FIG | United States | $10.0B | -9% | +43% | -124% | 54.8× | 22.2% | +43.4% |
| HubSpot HUBS | United States | $10.0B | +2% | +21% | 4% | 12.5× | 25.1% | +28.8% |
| Procore Technologies PCOR | United States | $11.4B | +41% | +16% | -1% | 33.8× | 19.9% | +27.0% |
| Oracle Financial Services Software OFSS.NS | India | $9.43B | +8% | +28% | 52% | 22.7× | 22.0% | +9.0% |
| Full Truck Alliance Co. Ltd. Sponsored ADR YMM | United States | $9.35B | +4% | +9% | 34% | 12.8× | -10.9% | +36.0% |
| Hinge Health HNGE | United States | $9.34B | +107% | +50% | 19% | 39.6× | 34.1% | +49.9% |
| Chime Financial CHYM | United States | $11.9B | +70% | +18% | -1% | 35.2× | 18.2% | +24.8% |
| Elastic ESTC | United States | $9.12B | +65% | +16% | -1% | 24.4× | 13.0% | +23.4% |
| Paylocity PCTY | United States | $9.03B | +56% | +11% | 22% | 19.0× | 2.3% | +22.8% |
| JFrog FROG | United States | $12.5B | +43% | +26% | -13% | 89.6× | 37.7% | +28.7% |
| Dynatrace DT | United States | $12.5B | +7% | +18% | 14% | 22.6× | 18.8% | +23.5% |
| Trimble TRMB | United States | $12.6B | -11% | +7% | 18% | 13.6× | 15.3% | +2.6% |
| Netskope NTSK | United States | $8.70B | +83% | +30% | -94% | n/a | n/a | n/a |
| 360 Security Technology 601360.SS | China | $8.63B | -26% | +7% | -4% | 172.6× | 55.2% | -5.7% |
| DigitalOcean DOCN | United States | $8.55B | -56% | +28% | 12% | 44.7× | 41.6% | +23.1% |
| CSG Digital Power Grid Research Institute 301638.SZ | China | $8.52B | -37% | +18% | 10% | n/a | 18.0% | +8.2% |
| Nemetschek NEM.DE | Germany | $8.39B | +10% | +13% | 26% | 29.9× | 11.1% | +14.8% |