Paycom Software, Inc. PAYC
Paycom Software, Inc. (PAYC) earns a Piotroski F-score of 5/9 (mixed financial health), with an Altman Z″ in the grey zone. It pays a dividend yielding 1.38% (safety: safe). FY2025 revenue was $2.1B at a 22.1% net margin.
Quality score trend · recomputed for each fiscal year
Each year's score is computed from that year's filing — a rising Piotroski F or Altman Z″ means improving financial health, a fall is worth a look.
Analyst price target
Recent analyst actions
| Date | Firm | Rating |
|---|---|---|
| 2026-06-26 | TD Cowen | Buy (main) |
| 2026-05-07 | Citigroup | Neutral (main) |
| 2026-05-07 | TD Cowen | Buy (main) |
| 2026-05-07 | Barclays | Equal-Weight (main) |
| 2026-05-07 | Mizuho | Neutral (main) |
| 2026-05-07 | BTIG | Buy (main) |
Wall Street analyst consensus — a sentiment gauge, not our scoring.
How it ranks in Services · percentile among 982 companies
Percentile vs other Services companies we cover — e.g. “stronger than 90%” means only 10% score higher on that measure.
Piotroski F breakdown · 5/9 tests passed
- Positive return on assets
- Positive operating cash flow
- Rising ROA
- Cash flow exceeds net income
- Lower long-term debt
- Rising current ratio
- No share dilution
- Rising gross margin
- Rising asset turnover
Altman Z″ components · grey zone
| Component | Value |
|---|---|
| Working capital / assets | 0.062 |
| Retained earnings / assets | 0.297 |
| EBIT / assets | 0.075 |
| Equity / liabilities | 0.295 |
Sector peers · similar-size Services companies compare side by side →
| Ticker | Company | Piotroski F | Altman Z″ | P / E | Revenue growth |
|---|---|---|---|---|---|
| PAYC | Paycom Software, Inc. | 5/9 | 2.19 | 13.6 | +8.9% |
| DT | Dynatrace, Inc. | 5/9 | 3.05 | 77.7 | +18.8% |
| NET | Cloudflare, Inc. | 3/9 | 1.95 | — | +29.8% |
| U | Unity Software Inc. | 5/9 | -0.19 | — | +2% |
| YMM | Full Truck Alliance Co. Ltd. | 4/9 | 17.05 | — | +16% |
| PCTY | Paylocity Holding Corp | 8/9 | 2.15 | 21.1 | +11% |
| TYL | TYLER TECHNOLOGIES INC | 8/9 | 3.8 | 39.3 | +9.1% |
About Paycom Software, Inc.
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. The company's HCM solution 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; talent acquisition, including applicant tracking, background checks, on-boarding, e-verify, and tax credit services; and talent management applications that include employee self-service, compensation budgeting, performance management, position management, Paycom learning, certification management. The company also offers time and labor management, such as time and attendance, scheduling, time-off requests, and labor allocation solutions. 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; and MyCom is a communications tool that provides organizations with a central place to share information with employees. Paycom Software, Inc. was founded in 1998 and is based in Oklahoma City, Oklahoma.
FAQ
Is PAYC financially healthy?
Paycom Software, Inc.'s Piotroski F-score is 5/9 (8–9 is excellent, 0–3 weak), and its Altman Z″ distress score is in the grey zone.
Does PAYC pay a dividend, and is it safe?
Yes. Paycom Software, Inc. pays a dividend yielding about 1.38% with a 18.7% payout ratio, rated “safe” for safety.
How profitable is PAYC?
In FY2025, Paycom Software, Inc. had a net margin of 22.1% and a return on equity of 26.2%.
Is PAYC overvalued or undervalued?
Paycom Software, Inc. trades at about 26.1× trailing earnings — below its 10-year norm (10-year range 16.7×–154.4×, median 63.4×). Stocktoria reports the data, not buy/sell advice.
What is the analyst price target for PAYC?
The average Wall-Street price target for Paycom Software, Inc. is $151.12, about 28.5% below the recent price, from 16 analysts (consensus: buy).
Is PAYC a good stock to buy?
Stocktoria doesn't give buy or sell advice, but here is the data on Paycom Software, Inc.: a Piotroski F-score of 5/9, an Altman Z″ in the grey zone, a P/E of about 13.6×, a dividend yield of 1.38%. Weigh these quality and valuation signals against your own goals.
Computed from company filings · US · as of 2025-12-31. Facts plus Stocktoria's own computed scores — not investment advice.