Paycom Software stock gains on valuation appeal and strong cash generation
Published on 09/14/2026 at 21:54 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Paycom Software, Inc. stock (ISIN US70432V1026) is trading at USD 220.96 on the New York Stock Exchange as of September 14, 2026, 10:47 a.m. EDT, with investors focusing on its combination of solid growth and strong capital efficiency per a mid-cap technology screen published on September 14, 2026 by Investing.com.
Screening highlights valuation and returns
According to Investing.com on September 14, 2026, Paycom is changing hands at USD 220.96, implying a market capitalization of USD 9.75 billion and a price-earnings multiple of 23.6 times based on the screening methodology used.
The same screen shows Paycom delivering revenue growth of 9.2 percent and a return on invested capital of 27.9 percent, placing it at the top of a group of U.S. mid-cap technology names on capital efficiency metrics per Investing.com.
Recent quarterly figures and guidance
For investors, the operating numbers from the latest quarter are an important cross-check on those valuation metrics. According to an 8-K filing summary for the quarter ended June 30, 2026 reported by Stock Titan, Paycom generated total revenue of USD 531.2 million in that quarter, up 9.8 percent from USD 483.6 million in the same period a year earlier.
Recurring and other revenues accounted for USD 505.2 million, or 95.1 percent of total revenue, and rose 11.0 percent year on year in the June 30, 2026 quarter, underscoring the resilience of the subscription-based model per Stock Titan.
On profitability, Paycom reported GAAP net income of USD 107.4 million for the June 30, 2026 quarter, corresponding to a 20.2 percent net margin and earnings of USD 2.34 per diluted share, up from USD 89.5 million and USD 1.58 per diluted share in the prior-year quarter, meaning net income increased by roughly 20.0 percent while earnings per share rose about 48.1 percent according to Stock Titan.
On a non-GAAP basis, the same filing shows net income of USD 127.7 million, or USD 2.78 per diluted share, while adjusted EBITDA reached USD 235.0 million for the June 30, 2026 quarter, corresponding to an adjusted EBITDA margin of 44.2 percent per Stock Titan.
For the full year 2026, Paycom’s management guides for total revenue between USD 2.197 billion and USD 2.212 billion, which implies growth of approximately 7 to 8 percent versus the prior year, and expects adjusted EBITDA between USD 1.007 billion and USD 1.022 billion, pointing to an adjusted EBITDA margin of about 46 percent at the midpoint according to Stock Titan.
Analyst consensus and index changes
On the sell-side, Paycom currently carries a consensus rating of Hold with a consensus target price of USD 214.23, suggesting limited implied downside relative to the USD 220.96 screening price, according to an overview published by MarketBeat on September 14, 2026.
The same MarketBeat report notes that Paycom’s most recently reported quarter delivered earnings per share of USD 2.78, beating the analyst consensus estimate of USD 2.38 by USD 0.40, while revenue of USD 531.20 million exceeded expectations of USD 513.12 million, highlighting a positive surprise both on the top line and bottom line according to MarketBeat.
Beyond fundamentals, Paycom has seen its role in one benchmark index change. An update on the Alger Russell Innovation Index for the third quarter of 2026 shows that Paycom Software, Inc. has been removed from this index, with the action listed as a deletion for ticker PAYC, according to an index review published on September 14, 2026 by Moomoo.
While removal from an innovation-focused index can reduce passive flows from some products, the valuation screen on September 14, 2026 still identifies Paycom as one of the most attractive U.S. mid-cap technology names on free cash flow yield and capital efficiency metrics, with the screen assigning a 5.9 percent free cash flow yield and a one-year total return of 11.7 percent to the shares according to Investing.com.
Dividend, cash returns and philanthropic move
Paycom is also returning cash directly to shareholders. According to the same 8-K summary cited by Stock Titan, the company’s board declared a regular quarterly cash dividend of USD 0.375 per share on its common stock, payable on September 8, 2026 to stockholders of record at the close of business on August 24, 2026.
This quarterly dividend corresponds to an annualized payment of USD 1.50 per share and a dividend yield of about 0.7 percent at recent share prices, while the dividend payout ratio is reported at 15.94 percent, leaving ample headroom for reinvestment and future shareholder distributions according to MarketBeat.
In addition to shareholder returns, Paycom is maintaining a community and healthcare focus. As reported by The Journal Record on September 14, 2026, Paycom has donated USD 200,000 to Baylor Scott and White Health’s Texas Cancer Interception Institute, supporting early cancer detection initiatives aimed at improving patient outcomes.
Stock level and investor perspective
Per the September 14, 2026 valuation screen, Paycom Software stock is quoted at USD 220.96 on the New York Stock Exchange, with a market capitalization of USD 9.75 billion and a 5.9 percent free cash flow yield as of 10:47 a.m. EDT, positioning the shares moderately above the USD 214.23 consensus target while supported by double-digit returns on invested capital and robust margins.
Key data on Paycom Software stock
- Company: Paycom Software, Inc.
- ISIN: US70432V1026
- Ticker: PAYC
- Trading venue: New York Stock Exchange
- Price (as of September 14, 2026, 10:47): 220.96 USD
- Market capitalization: 9.75 billion USD (as of September 14, 2026)
- Sector / Industry: Software / Human capital management
- Index membership: S&P 500
