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Upturn stock ratingUpturn stock rating
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Paycom Soft (PAYC)

Upturn stock ratingUpturn stock rating
$201.3
Last Close (24-hour delay)
upturn advisory
PASS
  • BUY Advisory
  • SELL Advisory (Profit)​
  • SELL Advisory (Loss)​
  • Profit
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  • Pass (Skip investing)
Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • YEAR
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Upturn Advisory Summary

10/13/2025: PAYC (1-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

rating

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Number of Analysts

rating

20 Analysts rated it

Well-followed company, solid analyst reports, reliable data for confident investing.

1 Year Target Price $246.69

1 Year Target Price $246.69

Analysts Price Target For last 52 week
$246.69 Target price
52w Low $160.21
Current$201.3
52w High $267.33

Analysis of Past Performance

Type Stock
Historic Profit -17.69%
Avg. Invested days 36
Today’s Advisory PASS
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 1.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 10/13/2025

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 11.32B USD
Price to earnings Ratio 27.17
1Y Target Price 246.69
Price to earnings Ratio 27.17
1Y Target Price 246.69
Volume (30-day avg) 20
Beta 0.83
52 Weeks Range 160.21 - 267.33
Updated Date 10/13/2025
52 Weeks Range 160.21 - 267.33
Updated Date 10/13/2025
Dividends yield (FY) 0.75%
Basic EPS (TTM) 7.41

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 21.21%
Operating Margin (TTM) 23.22%

Management Effectiveness

Return on Assets (TTM) 8.25%
Return on Equity (TTM) 25.75%

Valuation

Trailing PE 27.17
Forward PE 20.16
Enterprise Value 10877952899
Price to Sales(TTM) 5.78
Enterprise Value 10877952899
Price to Sales(TTM) 5.78
Enterprise Value to Revenue 5.55
Enterprise Value to EBITDA 14.89
Shares Outstanding 56256594
Shares Floating 49753332
Shares Outstanding 56256594
Shares Floating 49753332
Percent Insiders 11.59
Percent Institutions 92.13

ai summary icon Upturn AI SWOT

Paycom Soft

stock logo

Company Overview

overview logo History and Background

Paycom Software, Inc. was founded in 1998 by Chad Richison. It started as a small payroll company and has grown into a comprehensive human capital management (HCM) solutions provider. Paycom went public in 2014 and has since experienced significant growth, driven by its focus on innovation and customer service.

business area logo Core Business Areas

  • Payroll: Paycom's core offering is payroll processing, which includes tax filing, garnishment administration, and direct deposit.
  • Human Resources: Provides HR management tools such as benefits administration, performance management, and employee relations management.
  • Talent Management: Includes applicant tracking, onboarding, compensation planning, and learning management system.
  • Time and Labor Management: Offers time tracking, attendance management, and scheduling solutions.

leadership logo Leadership and Structure

Chad Richison serves as the President and CEO. The company operates with a functional organizational structure, with departments focused on sales, marketing, technology, and customer service. Mitch Krebs is the CFO. Brad Smith is the COO.

Top Products and Market Share

overview logo Key Offerings

  • Payroll: Paycom's payroll processing solution automates payroll tasks, ensures compliance, and provides real-time access to payroll data. Market share is estimated at around 5% of the total payroll market, but higher among companies with 50-5000 employees. Competitors include ADP (ADP), Paychex (PAYX), and Workday (WDAY).
  • BETI (Better Employee Transaction Interface): BETI allows employees to manage their own payroll and reduces employer errors. No specific market share data available. Competitors are those offering employee self-service payroll features, such as ADP, Paychex, and Ceridian (CDAY).
  • Applicant Tracking System (ATS): Paycom's ATS streamlines the recruitment process. No specific market share data available. Key competitors include Workday, Oracle (ORCL), and SAP (SAP).

Market Dynamics

industry overview logo Industry Overview

The HCM market is growing due to the increasing need for businesses to automate HR processes and manage employees effectively. Cloud-based solutions are becoming increasingly popular.

Positioning

Paycom positions itself as an innovative and user-friendly HCM solution provider focused on the mid-market segment. Its competitive advantage lies in its single database architecture and employee self-service capabilities.

Total Addressable Market (TAM)

The global human capital management (HCM) market is projected to reach hundreds of billions of dollars. Paycom is targeting the mid-market space within the HCM market. Paycom is well-positioned to capture a significant portion of this TAM with innovative solutions.

Upturn SWOT Analysis

Strengths

  • Single database architecture
  • High customer retention rates
  • Strong sales and marketing execution
  • Innovative product development (e.g., BETI)
  • Employee-centric design

Weaknesses

  • Higher price point compared to some competitors
  • Relatively smaller global presence
  • Dependence on U.S. market

Opportunities

  • Expanding into larger enterprise market
  • Increasing international presence
  • Further development of AI and machine learning capabilities
  • Acquisitions of complementary technologies

Threats

  • Intense competition from larger players (ADP, Paychex, Workday)
  • Economic downturn impacting business spending
  • Data security and privacy concerns
  • Changing regulatory landscape

Competitors and Market Share

competitor logo Key Competitors

  • ADP (ADP)
  • Paychex (PAYX)
  • Workday (WDAY)
  • Ceridian (CDAY)

Competitive Landscape

Paycom's competitive advantage lies in its single database architecture and employee self-service capabilities. However, it faces intense competition from larger, more established players like ADP and Paychex.

Major Acquisitions

Rippling

  • Year: 2024
  • Acquisition Price (USD millions): 25
  • Strategic Rationale: Expand HR and payroll solutions by integrating Rippling's functionality.

SyncHR

  • Year: 2018
  • Acquisition Price (USD millions): 200
  • Strategic Rationale: Strategic move to enhance and broaden HR management capabilities, particularly in data analytics and compliance.

Growth Trajectory and Initiatives

Historical Growth: Paycom has experienced rapid revenue and earnings growth over the past decade, driven by strong sales execution and product innovation.

Future Projections: Analysts predict continued revenue growth for Paycom, driven by its strong market position and innovative product offerings. However, growth rates are expected to slow down as the company matures.

Recent Initiatives: Recent initiatives include the expansion of BETI functionality, investments in AI and machine learning, and strategic acquisitions.

Summary

Paycom is a strong contender in the HCM market, especially within the mid-market segment. Its innovative products, such as BETI, and single database architecture are key strengths. It needs to expand global presence and manage competition effectively. Strategic acquisitions will determine how strong their foothold will be in the future.

Peer Comparison

Sources and Disclaimers

Data Sources:

  • Company Filings (SEC)
  • Industry Reports
  • Analyst Estimates
  • Company Website

Disclaimers:

This analysis is based on publicly available information and is for informational purposes only. It should not be considered as investment advice.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About Paycom Soft

Exchange NYSE
Headquaters Oklahoma City, OK, United States
IPO Launch date 2014-04-15
Founder, President, CEO & Chairman of the Board Mr. Chad R. Richison
Sector Technology
Industry Software - Application
Full time employees 7306
Full time employees 7306

Paycom Software, Inc. provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. The company offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. Its HCM solution provides a suite of applications in the areas of talent acquisition, including applicant tracking, background checks, on-boarding, e-verify, and tax credit services; and time and labor management, such as time and attendance, scheduling, time-off requests, and labor allocation solutions. The company's HCM solution also offers payroll applications comprising better employee transaction interface, payroll and payroll tax management, payroll card, Everyday, Paycom pay, Client Action Center, expense management, garnishment administration, and GL concierge applications; and talent management applications that include employee self-service, compensation budgeting, performance management, position management, and Paycom learning. Its HCM solution provides manager on-the-go that gives supervisors and managers the ability to perform a variety of tasks, such as approving time-off requests and expense reimbursements; direct data exchange; ask here, a tool for direct line of communication to ask work-related questions; document and checklist; government and compliance; benefits administration; COBRA administration; personnel action and performance discussion forms; Paycom surveys; retirement reporting; report center; and affordable care act applications, as well as Clue, which securely collects, tracks, and manages the vaccination and testing data of the workforce. Paycom Software, Inc. was founded in 1998 and is based in Oklahoma City, Oklahoma.