PAYCNYSEServices-Prepackaged SoftwareFiscal year ends December 31
Paycom Software, Inc.
Financials through Q2 FY2026, quarter ended Jun 30, 2026Last filing: 10-Q on Aug 6, 2026
$253.00+1.36 (+0.54%)
Close on Oct 19, 2026
- Market cap
- $11.61B
- P/E (TTM)
- 26.9
- Dividend yield
- 0.15%
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
83.2%−2.2 pts over 5 years
Operating margin
27.6%+5.5 pts over 5 years
Net margin
22.1%+5.1 pts over 5 years
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +8.9% | +14.3% | +19.5% | +24.8% | |
| Gross profit | +10.2% | +13.6% | +18.9% | +24.6% | |
| Operating income | -10.6% | +14.4% | +25.0% | +32.3% | |
| Net income | -9.7% | +17.2% | +25.9% | +36.0% | |
| EPS, diluted | -9.4% | +18.6% | +26.9% | +36.5% | |
| Free cash flow | +19.6% | +20.6% | +25.1% | +31.5% | |
| Dividend per share | 0.0% | – | – | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 46.3% | 24.3% | 27.4% | |
| Return on assets | 7.2% | 5.6% | 6.7% | |
| Current ratio | 1.03 | 1.09 | 1.09 | |
| Debt to equity | 0.14 | 0.05 | – | |
| Net debt to EBITDA | -6.74× | -6.49× | – | |
| Interest coverage | 98.2× | 9795.9× | 166.8× | |
| Inventory turnover | 61.2× | 107.0× | 222.8× | |
| Capex to revenue | 13.3% | 11.2% | 13.2% | |
| Diluted shares | 59M | 58M | 56M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Paycom Software generated $2.38B from operations and spent $1.97B on capital expenditure, dividends and share buybacks. 46% of that went back into the business.
Generated
$2.38B
Used
$1.97B
Capital expenditure$909.79M46%Dividends$234.40M12%Share buybacks$829.60M42%
DuPont analysis
Return on equity split into margin, efficiency and leverage
Net margin22.1%
×Asset turnover0.30×
×Equity multiplier4.07×
=Return on equity, FY202527.4%
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 22.1% | 0.30× | 4.07× | 27.4% |
| FY2024 | 26.7% | 0.37× | 3.49× | 34.9% |
| FY2023 | 20.1% | 0.42× | 3.26× | 27.4% |
| FY2022 | 20.5% | 0.39× | 3.43× | 27.1% |
| FY2021 | 18.6% | 0.36× | 3.76× | 25.3% |
| FY2020 | 17.0% | 0.33× | 4.31× | 24.3% |
| FY2019 | 24.5% | 0.37× | 4.65× | 41.9% |
| FY2018 | 24.2% | 0.37× | 4.99× | 44.5% |
| FY2017 | 28.5% | 0.33× | 5.40× | 50.7% |
| FY2016 | 21.4% | 0.34× | 6.43× | 46.3% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
5of 8 tests passed in fiscal 2025. Some tests lack the figures they need.
- ProfitableNet income above zero$453.40M
- Cash generatingOperating cash flow above zero$678.90M
- Return on assets improvedROA up on the prior year12.0% → 7.7%
- Earnings backed by cashOperating cash flow above net income$678.90M vs $453.40M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose1.10 → 1.09
- No dilutionShare count did not rise56M → 56M
- Gross margin improvedGross margin up on the prior year82.23% → 83.17%
- More efficientAsset turnover rose0.45 → 0.35