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Paycom Soft (PAYC)



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Upturn Advisory Summary
10/13/2025: PAYC (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $246.69
1 Year Target Price $246.69
3 | Strong Buy |
0 | Buy |
16 | Hold |
1 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -17.69% | Avg. Invested days 36 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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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 |
Upturn AI SWOT
Paycom Soft

Company Overview
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.
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 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
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
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
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.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
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 | Website https://www.paycom.com |
Full time employees 7306 | Website https://www.paycom.com |
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.

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