PAYCPAYC
US • —
$125.68
P/E
14.54
PEG
0.62
FCF Yield
—
Rev Growth YoY
+9.4% YoY
Gross Margin
83.4%
Health Score
6/10
D/E Ratio
—
Confidence
LOW
Business Snapshot
Paycom Software (PAYC) provides a cloud-based human capital management platform that handles payroll, HR, talent acquisition, and time management for businesses. The company operates in the highly competitive human resources software market and positions itself as a direct replacement for legacy payroll systems with its employee-self-service model. With a market cap significantly below the $2B threshold that defines mid-cap status, PAYC operates as a smaller player in a market dominated by larger enterprise software vendors. A defining characteristic of the business is its high gross margin profile, which allows it to generate strong profitability despite its relatively smaller scale.
Financial Health
Paycom carries a net margin of 22.4% and a gross margin of 83.4%, demonstrating a highly profitable underlying business model with strong pricing power and scalable software delivery. The balance sheet is debt-free, with a debt/equity ratio of 0.0x and a current ratio of 1.09x, indicating no leverage risk and adequate short-term liquidity...
Risk Assessment
- DATA COMPLETENESS — Free cash flow, revenue, and market capitalisation figures are unavailable, creating a fundamental data gap that limits full financial analysis.
- INSIDER ACTIVITY — 1 sell transaction vs 0 buys over the last 90 days signals insider caution and a net bearish posture by company executives.
- EARNINGS CREDIBILITY — Only 2 of 4 recent quarters beat analyst estimates, indicating inconsistent earnings quality and below-average guidance precision.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- VALUATION DIVERGENCE — No DCF fair value could be calculated due to negative or unavailable FCF, preventing any reliable intrinsic value comparison....
Paycom carries a net margin of 22.4% and a gross margin of 83.4%, demonstrating a highly profitable underlying business model with strong pricing power and scalable software delivery. The balance sheet is debt-free, with a debt/equity ratio of 0.0x and a current ratio of 1.09x, indicating no leverage risk and adequate short-term liquidity. Return on equity stands at a robust 31.0%, reflecting efficient capital allocation and strong ongoing profitability. However, free cash flow figures are not available in the data, making it impossible to assess cash generation quality or reinvestment capacity. Without FCF visibility, the overall financial health score is tempered despite the solid margins and debt-free balance sheet.
- DATA COMPLETENESS — Free cash flow, revenue, and market capitalisation figures are unavailable, creating a fundamental data gap that limits full financial analysis. - INSIDER ACTIVITY — 1 sell transaction vs 0 buys over the last 90 days signals insider caution and a net bearish posture by company executives. - EARNINGS CREDIBILITY — Only 2 of 4 recent quarters beat analyst estimates, indicating inconsistent earnings quality and below-average guidance precision. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - VALUATION DIVERGENCE — No DCF fair value could be calculated due to negative or unavailable FCF, preventing any reliable intrinsic value comparison.
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