Fact based stock research
Paycom Software (NYSE:PAYC)

US70432V1026

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Paycom Software stock research in summary

paycom.com

ANALYSIS: With an Obermatt Combined Rank of 98 (better than 98% compared with investment alternatives), Paycom Software (Application Software, USA) shares have much better financial characteristics than comparable stocks. Shares of Paycom Software are a good value (attractively priced) with a consolidated Value Rank of 86 (better than 86% of alternatives), are safely financed (Safety Rank of 100, which means low debt burdens), but show below-average growth (Growth Rank of 37). ...read more

RECOMMENDATION: A Combined Rank of 98, is a strong buy recommendation based on Paycom Software's financial characteristics. As the company Paycom Software's key financial metrics exhibit good value (Obermatt Value Rank of 86) but low growth (Obermatt Growth Rank of 37) while being safely financed (Obermatt Safety Rank of 100), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 86% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	86
Growth Rank	37
Safety Rank	100
Combined Rank	98

Country	USA
Industry	Application Software
Index	S&P 500
Size class	Medium

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Paycom Software

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	25	82	87	86
GROWTH
GROWTH	79	11	29	37
SAFETY
SAFETY	95	96	93	100
SENTIMENT
SENTIMENT	65	61	95	^new
360° VIEW
360° VIEW	95	93	100	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 31-Mar-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better Paycom Software is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	25	82	87	86
GROWTH
GROWTH	79	11	29	37
SAFETY
SAFETY	95	96	93	100
COMBINED
COMBINED	90	91	93	98

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of Paycom Software the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 86 (better than 86% compared with alternatives) for 2025, Paycom Software shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Paycom Software. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 97% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 33 which means that the stock price compared with what market professionals expect for future profits is higher than 67% of comparable companies, indicating a low value concerning Paycom Software's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 49 which means that the stock price compared with what market professionals expect for future profit levels is higher than 51% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 46 is also low. Compared with invested capital, the stock price is higher than for 54% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 86, is a buy recommendation based on Paycom Software's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Paycom Software? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Paycom Software only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	11	23	30	33
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	61	68	68	49
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	20	41	45	46
DIVIDEND YIELD
DIVIDEND YIELD	1	92	92	97
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	25	82	87	86

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Paycom Software; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 37 (better than 37% compared with alternatives), Paycom Software shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Paycom Software. Sales Growth has a below market rank of 40, which means that, currently, professionals expect the company to grow less than 60% of its competitors. The same is valid for Capital Growth, with a rank of 30, and Profit Growth, with a rank of 47. Currently, professionals expect the company to grow its profits less than 53% of its competitors). Only shareholders are optimistic. Stock Returns are above average at a rank of 83, which means that the stock returns have recently been above 83% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 37, is a hold recommendation for growth and momentum investors. That picture may be the result for a company that has reached the bottom. All went south for Paycom Software, and it still looks bad, but some investors already see light at the end of the tunnel, rewarding the stock with recent above-market stock returns. It could also mean that investors are correcting an overreaction to negative news. If that were the case, the positive stock returns are not yet a sign of recovery. Investors should look closely at the Value and Sentiment indicators before they make a stock purchasing decision, because growth is unlikely to be the driving argument behind this investment. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is low here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	62	47	48	40
PROFIT GROWTH
PROFIT GROWTH	60	43	32	47
CAPITAL GROWTH
CAPITAL GROWTH	67	21	29	30
STOCK RETURNS
STOCK RETURNS	55	7	63	83
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	79	11	29	37

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Paycom Software.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 100 (better than 100% compared with alternatives) for 2025, the company Paycom Software has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Paycom Software is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Paycom Software. Leverage is at a rank of 100, meaning the company has a below-average debt-to-equity ratio. It has less debt than 100% of its competitors. Liquidity is also good at a rank of 98, meaning the company generates more profit to service its debt than 98% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 46, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 54% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 100 (better than 100% compared with alternatives), Paycom Software has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Paycom Software. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Paycom Software and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	71	81	59	100
REFINANCING
REFINANCING	23	37	46	46
LIQUIDITY
LIQUIDITY	100	100	100	98
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	95	96	93	100

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Paycom Software and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	13	13	^new
OPINIONS CHANGE
OPINIONS CHANGE	50	50	53	^new
PRO HOLDINGS
PRO HOLDINGS	21	96	100	^new
MARKET PULSE
MARKET PULSE	96	67	98	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	65	61	95	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Paycom Software.
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