Added to YB: 2026-07-15
Pitch date: 2026-07-14
PAYC [bullish]
Paycom Software, Inc.
Author Info
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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
$6.8B
Pitch Price
N/A
Price Target
N/A
Dividend
1.02%
EV/EBITDA
10.68
P/E
17.11
EV/Sales
3.55
Sector
Professional Services
Category
value
$PAYC a self-cannibalizing compounder the market has priced for obsolescence.
PAYC: Down 74% from 2021 peak, 3rd-4th pctile of decade valuation. Self-cannibalized service rev (Beti/GONE eliminated ~5% high-margin error fees) lifted retention to 91%, ~83% GM, 24% ROIC. Rev decel 30%→6.5% guided '26. ~14x fwd EPS, 4.2x EV/sales. Founder drew $675M revolver to retire 15% float at lows. Risks: AI per-seat disruption, share loss masking, float rollover, first leverage, C-suite churn. 2026 pivotal.
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