Is the business good?
How good a business is PAYC?
Paycom Software, Inc. earns 35% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
35%
Return on invested capital · cost of capital 9.0% · 26 points above what the capital costs: growth creates value
- Operating margin
- 28%
Operating margin · Software - Application median 8.2% · 12 months to Q1 2026
- Cash conversion
- 0.95×
Cash conversion · 0.98× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −9.1%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 22% |
| FY2021 | 24% |
| FY2022 | 28% |
| FY2023 | 27% |
| FY2024 | 34% |
| FY2025 | 28% |
Details›
- Gross margin12 months to Q1 2026
- 83%
- Operating margin12 months to Q1 2026
- 28%
- Net margin12 months to Q1 2026
- 22%
- Free cash flow margin
- 21%
- R&D as % of revenue
- 13%
- Revenue, trailing twelve months
- $2.09B
- Free cash flow, trailing twelve months
- $446M
- Net income, trailing twelve months
- $470M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 35%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Application
Ranks #27 of 90 by Smart Score