| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 35 | 28.5x | 17.3x | Bottom tier | |
Growth | 69 | 9.2% | 7.1% | Top tier | |
Quality | 95 | 26.3% | 4.5% | Top tier | |
Safety | 74 | 0.9x | 2.6x | Top tier | |
Capital Return | 73 | 0.42% | 0.06% | Top tier | |
Momentum | 94 | 9.1% | -1.6% | Top tier | |
Sentiment | 44 | 12 | 3 | Around median |
The floor: what the company is worth if growth stopped today
62% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Paycom Software provides a unified platform for automating human capital management and payroll, bringing together products such as IWant, Project Arc, Career and Succession Planning, and Paycom Learning within its system. The revenue model relies primarily on recurring fees and other services associated with platform usage, along with interest on client funds; in fiscal Q2 2026, recurring and other revenues were $505 million out of total revenue of $531 million, or approximately 95% of the mix.
In fiscal Q2 2026, revenue increased 10% year over year to $531 million, while recurring and other revenues grew 11%. GAAP net income was $107 million, up 20%, or $2.34 per diluted share, representing a net income margin of approximately 20.2%. Adjusted earnings before interest, taxes, depreciation, and amortization reached $235 million, with the margin expanding 320 basis points to 44.2%.
EDGAR data confirms the continuation of a highly profitable base before the latest earnings call results; fiscal Q1 2026 recorded revenue of $571.9 million, gross profit of $484.5 million, net income of $155.7 million, and earnings per share of $3.04. On a trailing-twelve-month basis ending in fiscal 2026, revenue was $2.1 billion, gross profit was $1.7 billion, net income was $469.7 million, and earnings per share were approximately $9.18.
The average analyst target is $201.18, compared with a wide target range of $130 to $270 and a neutral consensus rating, reflecting a clear divide over the value of margin improvement and the sustainability of growth. The average target is below the 52-week range high of $242.5, while the highest target exceeds that high and the lowest target approaches the range low of $104.9; therefore, the estimates incorporate widely divergent scenarios rather than a unified bullish view.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Paycom's revenue in fiscal Q2 2026 was approximately $531 million, up 10% year over year, while recurring and other revenues were $505 million, up 11%. Management said the strength was broad-based rather than driven by a single exceptional factor, with continued demand for automating human resources processes and improved client satisfaction. Net income increased 20% to $107 million, and the adjusted earnings before interest, taxes, depreciation, and amortization margin reached 44.2% after expanding by 320 basis points.
Paycom uses its IWant product to automate events and tasks within its platform and said the tool has become a primary way for new employees to interact with the system. The company spent more than $100 million in fiscal 2025 to prepare data centers that host its proprietary models. It expects this investment to save approximately $100 million in research and development and more than $30 million in third-party IWant response fees in fiscal 2026, while emphasizing the accuracy of results before launching new functions.
Automated analysis for informational purposes only — not investment advice.
Paycom launched Asset Management in July 2026 as the forty-fifth product it has developed, hosted, distributed, and serviced. The product enables the tracking, deployment, and retrieval of physical and digital assets and takes the company into an additional market it described as multibillion-dollar. Career and Succession Planning, which was announced earlier in fiscal 2026, helps clients identify talent gaps and career readiness, but management explained that the two products' contribution to Q2 revenue was not yet material.
Paycom expects fiscal 2026 revenue of between $2.197 billion and $2.212 billion, equivalent to annual growth of between 7% and 8%. It also expects recurring and other revenue growth of between 8% and 9%, with approximately $105 million of interest on client funds, assuming interest rates remain unchanged. Adjusted earnings before interest, taxes, depreciation, and amortization guidance ranges from $1.007 billion to $1.022 billion, with a 46% margin at the midpoint of the range and free cash flow exceeding $650 million.
Paycom repurchased approximately 2.6 million shares in fiscal Q2 2026 for $346 million, equivalent to approximately 6% of its outstanding shares according to company figures. During the first half of the year, it reduced outstanding shares by 20% through the repurchase of approximately 11 million shares for about $1.4 billion and ended the quarter with approximately 44 million shares outstanding. In contrast, the company drew $900 million from its $2.1 billion revolving credit facility to support the repurchases, with a cash and cash equivalents balance of $198 million.
The fiscal 2026 revenue growth range of 7% to 8% suggests a slowdown from Q2 growth of 10%, and management also noted a more difficult comparison in Q4. The company did not provide separate revenue figures for the new products, instead saying their contribution in fiscal Q2 2026 was not material. The neutral analyst rating and target range extending from $130 to $270 also reflect significant disagreement over the sustainability of growth and margins, while the use of $900 million from the credit facility to finance repurchases increases the importance of monitoring liquidity and capital allocation.