Founded in 1998, Paycom is a human capital management software-as-a-service provider addressing customer requirements surrounding payroll, talent acquisition, talent management, human resources management, and time and labor. The company primarily generates revenue through the sale of subscriptions providing access to its HCM platform. To a lesser extent, the company also generates revenue from implementation services provided to customers as well as interest income generated from customer funds.
The chart shows the growth of an initial investment of $10,000 in PAYCOM SOFTWARE, INC., comparing it to the performance of the S&P 500 index.
All prices have been adjusted for splits and dividends.
PAYCOM SOFTWARE, INC. (PAYC) has returned -22.50% so far this year and -35.31% over the past 12 months. Looking at the last ten years, PAYC has achieved an annualized return of 13.32%, outperforming the Benchmark (SPY), which averaged 12.23% per year.
The table below presents the monthly returns of PAYCOM SOFTWARE, INC. (PAYC) with color gradation from worst to best to easily spot seasonal factors.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | -15.48% | -8.14% | -2.05% | 1.69% | ||||||||
| 2025 | 0.27% | 7.08% | -0.30% | 3.73% | 13.78% | -10.69% | 0.63% | -1.72% | -7.09% | -10.27% | -13.75% | -0.40% |
| 2024 | -7.19% | -4.68% | 9.38% | -5.21% | -22.54% | -2.96% | 16.67% | -6.46% | 3.01% | 25.36% | 11.64% | -11.57% |
| 2023 | 2.32% | -10.80% | 5.41% | -3.34% | -3.53% | 16.11% | 15.17% | -19.64% | -12.73% | -5.27% | 19.08% | 13.69% |
| 2022 | -19.24% | 0.96% | 1.68% | -18.88% | 0.51% | -2.94% | 17.74% | 6.44% | -5.30% | 3.97% | -3.99% | -8.23% |
| 2021 | -15.61% | -2.79% | -3.02% | 1.15% | -14.78% | 9.95% | 10.46% | 21.77% | 1.97% | 10.11% | -20.16% | -6.46% |
| 2020 | 19.20% | -11.98% | -29.36% | 35.24% | 17.48% | 4.39% | -8.62% | 4.66% | 2.76% | 15.38% | 14.55% | 7.87% |
| 2019 | 23.66% | 22.75% | 2.96% | 5.99% | 4.38% | 7.30% | 4.39% | 3.95% | -15.60% | 0.97% | 30.87% | -4.35% |
| 2018 | 13.88% | 8.42% | 8.19% | 7.43% | -7.48% | -6.76% | 8.54% | 33.67% | -0.07% | -18.84% | 5.94% | -9.98% |
| 2017 | 0.09% | 16.64% | 5.52% | 4.31% | 8.00% | 4.19% | 2.19% | 5.47% | 0.35% | 9.59% | 3.92% | -1.65% |
| 2016 | 8.27% | 4.77% | 6.51% | 9.56% | 6.96% | -1.92% | 3.73% | -13.63% | 0.98% |
The charts below present risk-adjusted performance metrics for PAYCOM SOFTWARE, INC. (PAYC) and compare them to a Benchmark (SPY). These indicators evaluate an investment's returns against its associated risks.
The Sharpe ratio helps investors understand how much return they're getting for the level of risk taken. A higher Sharpe ratio indicates better risk-adjusted performance, meaning more reward for each unit of risk.
These values reflect how efficiently the investment has delivered returns relative to its volatility over different time periods. All figures are annualized and based on daily total returns.
The chart below shows the rolling Sharpe ratio of PAYC compared to the benchmark. This view highlights how the investment's risk-adjusted performance has changed over time.
The current PAYCOM SOFTWARE, INC. volatility is 2.47%, representing the standart deviation of percentage change in the investments's value, either up or down over the past month. The chart below shows the rolling one-month volatility.
The Drawdowns chart displays portfolio losses from any high point along the way. It shows the maximum percentage drop from a peak to a trough over a specified period, indicating the risk of significant losses.
Although chart shows positive values, it represents the percentage drop from the peak, so a value of 10% means the portfolio has dropped 10% from its highest point.
The income statement provides a summary of a company's revenues, expenses, and profits over a specific period. It shows how much money the company earned (revenues) and how much it spent (expenses), leading to the net income or profit. This statement is crucial for understanding a company's financial performance and profitability.
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Liabilities And Equity (USD) | 7.60B | 5.86B | 4.20B | 3.90B | 3.22B | 2.61B | 2.49B | 1.52B | 1.36B | 1.08B | 876.77M | 798.94M |
| Equity Attributable To Parent (USD) | 1.73B | 1.58B | 1.30B | 1.18B | 893.71M | 655.64M | 526.63M | 334.75M | 135.40M | 116.53M | 98.31M | 74.14M |
| Equity Attributable To Noncontrolling Interest (USD) | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity (USD) | 1.73B | 1.58B | 1.30B | 1.18B | 893.71M | 655.64M | 526.63M | 334.75M | 135.40M | 116.53M | 98.31M | 74.14M |
| Other Non-current Liabilities (USD) | - | - | - | 313.87M | 301.87M | 203.35M | 174.13M | 124.10M | 44.31M | 33.37M | 25.07M | - |
| Long-term Debt (USD) | - | - | - | 29.00M | 29.16M | 30.89M | 32.63M | 34.39M | 35.30M | 29.82M | 25.86M | - |
| Noncurrent Liabilities (USD) | 498.80M | 377.20M | 359.86M | 342.87M | 331.02M | 234.24M | 206.77M | 158.49M | 79.61M | 63.19M | 50.93M | 46.03M |
| Other Current Liabilities (USD) | 5.36B | 3.88B | 2.52B | 2.36B | 1.98B | 1.71B | 1.75B | 1.01B | 1.13B | 890.39M | 719.74M | 674.15M |
| Wages (USD) | - | - | - | - | - | - | - | 10.74M | 7.02M | 4.77M | 2.90M | 1.58M |
| Accounts Payable (USD) | 6.60M | 23.90M | 13.88M | 16.05M | 5.77M | 6.79M | 5.05M | 6.29M | 6.49M | 3.74M | 4.90M | 3.04M |
| Current Liabilities (USD) | 5.37B | 3.91B | 2.53B | 2.38B | 1.99B | 1.72B | 1.75B | 1.03B | 1.14B | 898.89M | 727.53M | 678.77M |
| Liabilities (USD) | 5.87B | 4.28B | 2.89B | 2.72B | 2.32B | 1.95B | 1.96B | 1.19B | 1.22B | 962.09M | 778.46M | 724.80M |
| Other Non-current Assets (USD) | 1.72B | 1.51B | 835.80M | 681.88M | 556.13M | 458.09M | 377.36M | 280.34M | 57.60M | 56.18M | 56.78M | 57.63M |
| Intangible Assets (USD) | 37.40M | 46.20M | 50.11M | 54.02M | 58.03M | - | - | - | - | - | - | - |
| Fixed Assets (USD) | - | - | 498.20M | 402.45M | 348.95M | 285.22M | 238.46M | 176.96M | 147.71M | 96.85M | 58.86M | 47.92M |
| Noncurrent Assets (USD) | 1.76B | 1.56B | 1.38B | 1.14B | 963.11M | 743.31M | 615.82M | 457.30M | 205.30M | 153.03M | 115.64M | 105.55M |
| Other Current Assets (USD) | 5.79B | 4.26B | 2.77B | 2.73B | 2.23B | 1.85B | 1.86B | 1.06B | 1.14B | 920.43M | 756.51M | 691.25M |
| Prepaid Expenses (USD) | 47.50M | 44.40M | 37.61M | 34.06M | 23.73M | 17.85M | 13.56M | 7.66M | 4.98M | 4.48M | 3.53M | 1.95M |
| Inventory (USD) | 1.70M | 1.40M | 1.38M | 1.61M | 1.13M | 1.15M | 1.16M | 797.00K | 979.00K | 675.00K | 1.09M | 195.00K |
| Current Assets (USD) | 5.84B | 4.30B | 2.81B | 2.76B | 2.25B | 1.86B | 1.87B | 1.06B | 1.15B | 925.58M | 761.14M | 693.39M |
| Assets (USD) | 7.60B | 5.86B | 4.20B | 3.90B | 3.22B | 2.61B | 2.49B | 1.52B | 1.36B | 1.08B | 876.77M | 798.94M |
S&P Dow Jones Indices announced a significant S&P 500 rebalance effective March 23, 2026, adding Vertiv Holdings and Lumentum Holdings while removing Match Group and Paycom. The rebalance reflects a broader market shift toward technology infrastructure and photonics companies supporting AI and cloud computing. Index inclusion typically creates short-term buying pressure for new members and selling pressure for removed stocks, though long-term performance depends on fundamentals.
Reinhart Partners acquired approximately $95.28 million worth of Paycom shares (537,726 shares) in Q4 2025, increasing its stake to 2.9% of fund assets. However, the article notes significant headwinds for Paycom, including a 70% stock decline since 2021, slowing revenue growth from 30% to under 10%, and concerns about AI disruption to its SaaS payroll and HR software business model.
Sather Financial Group increased its stake in Paycom Software by 18,035 shares (worth ~$3.2 million) in Q4 2025, bringing its total position to 268,030 shares valued at $42.71 million. Despite the additional investment, the position's value declined by $9.32 million due to share price depreciation. Paycom trades near five-year lows with significantly decelerated growth (10% in first nine months of 2025 vs. 25%+ historically), but now offers a more attractive valuation at a P/E ratio of 19 compared to pandemic-era multiples exceeding 150.
As companies focus on cost-cutting and operational efficiency in 2026, software platforms that automate payroll, accounts payable, and human capital management are positioned to benefit. Three stocks highlighted are ADP (a blue-chip dividend king with consistent growth), BILL Holdings (a turnaround story in business payments automation), and Paycom Software (specializing in employee self-service HCM automation with potential 40% upside).
Paycom Software has declined 72% from its 2021 peak but maintains solid fundamentals with 9.1% revenue growth, double-digit recurring revenue growth, expanding EBITDA margins, and aggressive share buybacks. Trading at 15x forward earnings with zero debt, the analyst views it as a buying opportunity despite competitive pressures and growth deceleration risks.
During the third-quarter earnings season, several high-profile companies experienced significant stock price drops after reporting their results. The article highlights three beaten-down stocks that the author believes are still worth investing in despite market reactions.
Asset management firm Amiral Gestion nearly tripled its position in Paycom Software, acquiring 54,000 shares worth approximately $11 million in Q3 2025, demonstrating strong conviction in the human capital management platform provider.
Paycom reported slower revenue growth and limited adjusted net income gains in Q1 2025, but CEO Chad Richison highlighted the role of automation and sales execution in driving growth. The company modestly increased its full-year 2025 guidance, and the stock rose after the report despite the slower growth.
Paycom Software's fourth-quarter results exceeded expectations, with revenue rising 14% and adjusted net income growing 18% year-over-year. However, the company's guidance for 2025 suggested a slowdown in growth, leading to uncertainty among investors.
Paycom Software reported a strong fourth-quarter earnings beat with impressive revenue growth, although client count growth remained flat. The company showcased robust performance, with revenue, adjusted EPS, and adjusted EBITDA all exceeding expectations. However, the flat client count growth was a point of concern.
