Paycom Software (PAYC) Fundamental Analysis: Revenue, Earnings & Valuation

9.71 / 10

Outperform

Fundamentally, PAYC scores 9.7/10, earning an Outperform rating. Revenue‑MV and Cash‑UP are bullish, while PB‑ROE and Asset‑MV lag. Key factor Q‑scores show solid cash and revenue advantages, delivering 5‑7% monthly returns in top quartiles, underscoring robust financial health.

Analysis Checks(6/10)

Revenue-MV

Value-0.54

Score3/3

Weight160.64%

1M Return6.62%

Operating cycle

Value8.99

Score1/3

Weight-23.81%

1M Return-1.02%

Profit-MV

Value0.88

Score1/3

Weight-68.01%

1M Return-3.17%

Net income-Revenue

Value0.51

Score2/3

Weight12.87%

1M Return0.58%

PB-ROE

Value0.15

Score0/3

Weight-93.29%

1M Return-4.90%

Cash-UP

Value-0.05

Score2/3

Weight-128.83%

1M Return-8.52%

Long-term debt to working capital ratio (%)

Value1.06

Score2/3

Weight7.94%

1M Return0.32%

Asset-MV

Value-0.55

Score1/3

Weight109.17%

1M Return4.13%

Inventory turnover days

Value1.62

Score2/3

Weight2.44%

1M Return0.11%

Cash-MV

Value-0.10

Score3/3

Weight120.88%

1M Return5.94%

Is PAYC undervalued or overvalued?

PAYC scores 9.71/10 on fundamentals and holds a Discounted valuation at present. Backed by its 27.42% ROE, 22.10% net margin, 14.24 P/E ratio, 3.73 P/B ratio, and -8.96% earnings growth, these metrics solidify its Outperform investment rating.