Growth and business quality are strong, valuation is the relative weak spot (avg 70/100).
Broad-market heuristics · Not a buy/sell signal
Valuation and growth
Valuation
Growth
25–30x, paying a growth premium
20–25x, moderate cash flow premium
Above 10% CAGR, strong compounder
Above 10% CAGR, strong compounder
Business Quality & Capital Allocation
Shrinking >2%, active buybacks
Expanded 1–3pp, steady progress
Net debt/FCF of 1.4x, somewhat elevated
Above 20%, exceptional capital efficiency
Paycom Software (PAYC) quality: score, margins and returns
Paycom Software (PAYC) scores 86/100 on Intrinsiqq's quality score (a high-quality business), a weighted blend of 8 metrics each scored 0 to 100, on 30.3% operating margins and 26.8% ROIC. Every metric is computed from SEC filings; this is analysis, not investment advice.
Frequently asked
Is Paycom Software (PAYC) a high-quality business?+
Paycom Software scores 86 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which rates it a high-quality business on these measures. Recent figures include a 30.3% operating margin and a 26.8% return on invested capital. Quality and price are separate questions: even a great business can be a poor investment if you overpay, so read this score alongside the valuation. The metric-by-metric breakdown is on this scorecard.
What does Paycom Software's quality score measure?+
Intrinsiqq's quality score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, change in share count, and balance-sheet strength, each computed from PAYC's SEC filings rather than opinion or sentiment. A higher score means a more durable, capital-efficient business; it is not a buy or sell signal. Open each metric on this page to see exactly where Paycom Software scores well and where it falls behind.
What is Paycom Software's return on invested capital (ROIC)?+
Paycom Software earns about 26.8% on its invested capital, which is exceptional. ROIC measures how much profit a company generates per dollar put to work; sustained ROIC above its cost of capital is one of the clearest signs of a real competitive moat. Compare it to PAYC's margins and growth on this scorecard to judge durability.
How profitable is Paycom Software?+
Paycom Software runs an operating margin of about 30.3% and a net margin of about 22.8%. Revenue has grown at roughly 19.5% a year recently. High, stable margins usually point to pricing power and operating discipline. Margins are most telling next to growth and returns on capital, all of which feed this quality score. This is analysis from SEC filings, not investment advice.
SourceQuality score computed from the 10-Q filed 28 Jul 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 12 Oct 2026. How this is calculated.
Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically. Checks use broad-market heuristics, so sector norms may differ, and the valuation checks are more cyclical than the quality checks.
Peers
Services-Prepackaged Software · Pick stocks to compare with PAYC
Held by ETFs
PAYC is in 142 US ETFs. The largest of them, with PAYC's weight in each:
Spot a number that looks wrong? Check it in PAYC's SEC filings or
Download this analysis as a PDF (Pro)
Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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