Paycom Software (PAYC) Stock Analysis

November 11, 2026

This is a peer-relative look at Paycom Software (PAYC): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Commercial & Professional Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Paycom Software (PAYC)
Profile Item	PAYC
Name	Paycom Software, Inc.
Country/Region	United States
GICS Sector	Industrials
GICS Industry Group	Commercial & Professional Services
GICS Industry	Professional Services
GICS Sub-Industry	Human Resource & Employment Services
Market Capitalization	10.69 billion USD
Currency	USD
Exchange	NYSE
Listing Date	April 15, 2014
Security Type	Common Stock

Price Performance

Cumulative Growth

PAYC

GSPC

Paycom Software (PAYC) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…

Trailing total returns for Paycom Software (PAYC) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

Loading price history…

Calendar-year total returns for Paycom Software (PAYC) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Paycom Software (PAYC) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: PAYC	Industry group median
Total Return (1Y)	49.84%	10.68%
Total Return (3Y, Annualized)	13.71%	12.68%
Total Return (5Y, Annualized)	-13.38%	3.62%

Risk Profile

Drawdown History

PAYC

GSPC

Paycom Software (PAYC) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

Loading price history…

Distribution of monthly total returns for Paycom Software (PAYC) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Paycom Software (PAYC) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: PAYC	Industry group median
Volatility (1Y, Annualized)	47.19%	42.02%
Beta (5Y)	0.75	0.79
Max Drawdown (5Y)	-77.09%	-54.59%

Risk-Adjusted Performance

Risk-Return Positioning

Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. PAYC is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Paycom Software (PAYC) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: PAYC	Industry group median
Sharpe Ratio (1Y)	0.97	0.19
Sortino Ratio (1Y)	1.66	0.27

Profitability

ROE (TTM)

Paycom Software (PAYC) posts ROE of 42.22%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

PAYC

Commercial & Professional Services industry group

42.22%

Group distribution

Max: 47.06%
PAYC: 42.22%
Q3: 25.43%
Median: 14.11%
Q1: 3.92%
Min: -20.15%

Largest peers

RELX: 131.86%
ADP: 78.94%
PAYC: 42.22%
CTAS: 41.38%
WM: 31.68%
RSG: 18.48%
TRI: 14.11%

Where Paycom Software (PAYC) stands on ROE within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Paycom Software (PAYC) keeps 23.28% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

PAYC

Commercial & Professional Services industry group

23.28%

Group distribution

PAYC: 23.28%
Max: 23.28%
Q3: 11.35%
Median: 5.65%
Q1: 0.87%
Min: -8.60%

Largest peers

PAYC: 23.28%
RELX: 23.27%
ADP: 20.33%
TRI: 19.69%
CTAS: 17.82%
RSG: 12.92%
WM: 11.78%

Where Paycom Software (PAYC) stands on net margin within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Paycom Software (PAYC) turns 38.03% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

PAYC

Commercial & Professional Services industry group

38.03%

Group distribution

Max: 38.50%
PAYC: 38.03%
Q3: 18.84%
Median: 10.40%
Q1: 5.59%
Min: -12.00%

Largest peers

PAYC: 38.03%
RELX: 32.01%
ADP: 26.73%
CTAS: 24.10%
TRI: 21.93%
RSG: 20.29%
WM: 19.08%

Where Paycom Software (PAYC) stands on operating margin within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Paycom Software (PAYC) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: PAYC	Industry group median
ROE (TTM)	42.22%	14.11%
ROA (TTM)	8.98%	5.83%
Net Margin (TTM)	23.28%	5.65%
Operating Margin (TTM)	38.03%	10.40%
Gross Margin (TTM)	88.39%	36.58%

Growth

Revenue Growth

Paycom Software (PAYC) grew revenue 8.95%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

Paycom Software (PAYC): Revenue Growth across different time periods, set against Commercial & Professional Services industry-group medians.

EPS Growth

Paycom Software (PAYC) grew earnings per share -9.42%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

Paycom Software (PAYC): EPS Growth across different time periods, set against Commercial & Professional Services industry-group medians.

Growth Metrics

Paycom Software (PAYC) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: PAYC	Industry group median
Revenue Growth (YoY)	8.95%	6.05%
Revenue Growth (3Y CAGR)	14.27%	6.33%
EPS Growth (YoY)	-9.42%	5.05%
EPS Growth (3Y CAGR)	18.63%	9.63%

Financial Strength

Current Ratio (MRQ)

Paycom Software (PAYC) has current ratio of 1.06, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

PAYC

Commercial & Professional Services industry group

1.06

Group distribution

Max: 3.63
Q3: 2.14
Median: 1.55
Q1: 1.09
PAYC: 1.06
Min: 0.45

Largest peers

CTAS: 1.45
TRI: 1.08
PAYC: 1.06
ADP: 1.03
WM: 0.82
RSG: 0.75
RELX: 0.45

Where Paycom Software (PAYC) stands on current ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Paycom Software (PAYC) has debt-to-equity ratio of 1.16, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

PAYC

Commercial & Professional Services industry group

1.16

Group distribution

Max: 2.37
Q3: 1.25
PAYC: 1.16
Median: 0.88
Q1: 0.35
Min: 0.00

Largest peers

RELX: 7.10
WM: 2.37
RSG: 1.17
PAYC: 1.16
ADP: 1.10
CTAS: 0.52
TRI: 0.36

Where Paycom Software (PAYC) stands on debt-to-equity ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Paycom Software (PAYC) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: PAYC	Industry group median
Current Ratio (MRQ)	1.06	1.55
Debt / Equity (MRQ)	1.16	0.88
Net Debt / EBITDA	0.75	2.51

Dividends

Dividend Yield (TTM)

Paycom Software (PAYC) has dividend yield of 0.60%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

PAYC

Commercial & Professional Services industry group

0.60%

Group distribution

Max: 4.33%
Q3: 1.80%
Median: 0.60%
PAYC: 0.60%
Q1: 0.00%
Min: 0.00%

Largest peers

ADP: 2.21%
TRI: 2.18%
RELX: 1.66%
WM: 1.52%
RSG: 1.02%
CTAS: 0.83%
PAYC: 0.60%

Where Paycom Software (PAYC) stands on dividend yield within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Paycom Software (PAYC) has payout ratio of 14.34%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

PAYC

Commercial & Professional Services industry group

14.34%

Group distribution

Max: 99.58%
Q3: 41.99%
Median: 17.27%
PAYC: 14.34%
Q1: 0.00%
Min: -17.94%

Largest peers

TRI: 79.09%
ADP: 60.28%
RELX: 53.59%
WM: 48.03%
CTAS: 36.88%
RSG: 35.25%
PAYC: 14.34%

Where Paycom Software (PAYC) stands on payout ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Paycom Software (PAYC) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: PAYC	Industry group median
Dividend Yield (TTM)	0.60%	0.60%
Dividend Payout Ratio (TTM)	14.34%	17.27%

Valuation

P/E Ratio (TTM)

Paycom Software (PAYC) trades at P/E ratio of 22.69, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

PAYC

Commercial & Professional Services industry group

22.69

Group distribution

Max: 49.47
Q3: 33.76
Median: 24.16
PAYC: 22.69
Q1: 16.01
Min: 1.89

Largest peers

CTAS: 43.86
TRI: 34.53
RSG: 34.19
WM: 31.01
ADP: 26.89
RELX: 24.05
PAYC: 22.69

Where Paycom Software (PAYC) stands on P/E ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Paycom Software (PAYC) trades at 4.88 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

PAYC

Commercial & Professional Services industry group

4.88

Group distribution

Max: 7.17
PAYC: 4.88
Q3: 3.35
Median: 1.33
Q1: 0.69
Min: 0.11

Largest peers

CTAS: 7.64
RELX: 7.17
TRI: 6.09
ADP: 5.38
PAYC: 4.88
RSG: 4.36
WM: 3.60

Where Paycom Software (PAYC) stands on P/S ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Paycom Software (PAYC) trades at 14.62 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

PAYC

Commercial & Professional Services industry group

14.62

Group distribution

PAYC: 14.62
Max: 11.25
Q3: 6.08
Median: 2.92
Q1: 1.55
Min: -2.78

Largest peers

RELX: 169.44
ADP: 23.57
CTAS: 17.07
PAYC: 14.62
WM: 9.52
RSG: 6.15
TRI: 4.35

Where Paycom Software (PAYC) stands on P/B ratio within its Commercial & Professional Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Paycom Software (PAYC) metric values compared with Commercial & Professional Services industry-group medians
Metric	Current stock: PAYC	Industry group median
P/E Ratio (TTM)	22.69	24.16
P/S Ratio (TTM)	4.88	1.33
P/B Ratio (MRQ)	14.62	2.92
Free Cash Flow Yield (TTM)	5.69%	5.35%