Paycom Software, Inc. (PAYC) intrinsic value & 10-year financials
Paycom Software, Inc. (PAYC) has a Graham intrinsic value of $268.38 per share. At $251.64 on Oct 17, 2026, the stock trades 6% below that value. Over the last 10 fiscal years revenue grew 22.6% a year to $2.1B, with an average return on invested capital of 43.3%.
- Graham intrinsic value
- $268.38
- Share price (Oct 17, 2026)
- $251.64
- Price vs Graham value
- 6% below
- Market cap
- $14.1B
- Revenue (FY2025)
- $2.1B
- Revenue growth (10-yr CAGR)
- 22.6%
- ROIC (10-yr avg)
- 43.3%
- Free cash flow (FY2025)
- $408.0M
PAYC 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2025 | $2.1B | $453.4M | $8.08 | $408.0M | 27.6% | 31.2% |
| FY2024 | $1.9B | $502.0M | $8.92 | $341.0M | 33.7% | 42.6% |
| FY2023 | $1.7B | $340.8M | $5.88 | $292.4M | 26.6% | 34.7% |
| FY2022 | $1.4B | $281.4M | $4.84 | $232.4M | 27.5% | 37.6% |
| FY2021 | $1.1B | $196.0M | $3.37 | $198.7M | 24.0% | 32.9% |
| FY2020 | $841.4M | $143.5M | $2.46 | $133.1M | 22.1% | 29.3% |
| FY2019 | $737.7M | $180.6M | $3.09 | $131.3M | 30.7% | 47.1% |
| FY2018 | $566.3M | $137.1M | $2.34 | $124.9M | 30.7% | 60.8% |
| FY2017 | $433.0M | $66.8M | $1.13 | $70.8M | 18.2% | 65.0% |
| FY2016 | $329.1M | $43.8M | $0.74 | $55.0M | 17.6% | 51.5% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
Paycom Software, Inc. is a consistent compounder, expanding top-line revenue at 22.5% annually over the past decade.
Paycom Software, Inc. has earned high returns on invested capital, averaging 43.3% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.
Paycom Software, Inc. has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, Paycom Software, Inc. is modeled at 15.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $268.38 per share.