Added to YB: 2026-08-27
Pitch date: 2026-08-20
PAYC [neutral]
Paycom Software, Inc.
+2.68%
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
$226.25
Price Target
N/A
Dividend
0.65%
EV/EBITDA
14.37
P/E
24.56
EV/Sales
5.12
Sector
Professional Services
Category
growth
Payments and FinTech Earnings Recap: Q2 2026 - Paycom Software, Inc.
PAYC (earnings): recurring rev +11% (up 2pts QoQ) despite tougher comp; FY recurring guide raised to 8-9% from 7-8%, H1 at 10% suggests further upside. FCF guided >$650MM FY26 (+60% YoY); repurchased ~20% of shares since start of 2026 at ~$127 vs $222 now. Author est: >$950MM GAAP EBITDA FY26 = ~11.5x EV/EBITDA, attractive if recurring growth accelerates to DDs. Data-center/AI investment ($100MM last yr) driving ~$100MM R&D savings + $30MM IWant processing savings. Caveat: limited quarterly disclosure obscures upside source (client growth, cross-sell, retention, pricing).
Read full article (2 min)