Added to YB: 2026-07-02
Pitch date: 2026-06-30
PAYC [neutral]
Paycom Software, Inc.
+96.72%
current return
Author Info
Bob’s Payment Stock Substack is a former analyst and portfolio manager. Fundamental buy-and-hold investor. Talking stocks and markets. Focus on Payments, Financial Technology, and Payroll and HCM. Sign up for the newsletter.
Company Info
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.
Market Cap
$10.2B
Pitch Price
$128.54
Price Target
164.00 (-35%)
Dividend
0.65%
EV/EBITDA
14.37
P/E
24.56
EV/Sales
5.12
Sector
Professional Services
Category
value
Paycom Software: Innovation Without Acceleration
PAYC (overview): Founder-led mid-market HCM at ~11x NTM EPS, but adj metrics overstate earnings; normalized P/E ~15x. Recurring rev growth decelerating (28%+ pre-Covid to 7-8% 2026) despite stable macro; Beti cannibalization, sales turnover, rising ADP/Intuit/Workday competition. Fair value $164; author prefers Intuit at 12.5x.
Read full article (13 min)