Paycom Software (HAM:0PY) Moat Score: 6/10 (As of Jul. 09, 2026)


HAM:0PY Paycom Software Inc HAM:0PY
71 GF Score
Price €125.65
GF Value €223.99
Valuation Significantly Undervalued
! 3 Warning Signs
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What is Paycom Software Moat Score?

Paycom Software HAM:0PY +2.57% 71 Moat Score is 6 as of Jul. 09, 2026. GuruFocus rates HAM:0PY with a GF Score™ of 71/100 and a GF Value™ of €223.99 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,836 Software companies, Paycom Software ranks better than 97.88% on this metric.

Paycom Software has the Moat Score of 6, which implies that the company might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Paycom Software has Narrow Moat: Paycom has a strong narrow moat with solid customer switching costs and a robust brand in the HR software market. Its proprietary technology and consistent innovation contribute to its competitive edge, though it lacks the scale of a wide moat.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Paycom Software might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Paycom Software  (HAM:0PY) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Paycom Software Moat Score Related Terms

HAM:0PY vs ESTC, CVLT, NAVN: Moat Score Comparison

For the Software - Application subindustry, Paycom Software's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Paycom Software Moat Score vs Software Industry

For the Software industry and Technology sector, Paycom Software's Moat Score distribution charts can be found below:

* The bar in red indicates where Paycom Software's Moat Score falls into.


HAM:0PY
71GF Score
Paycom Software Inc HAM:0PY
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 6 mean?
Paycom Software (HAM:0PY) has a Moat Score of 6 as of Jul. 09, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Paycom Software ranks #60 out of 2836 companies in the Software industry, placing it in the top 2.1%.
Is Paycom Software's Moat Score too high?
Paycom Software's current Moat Score is 6. Based on the distribution chart, Paycom Software ranks #60 out of 2836 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Paycom Software has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Paycom Software's Moat Score compare to ESTC and CVLT?
According to the Software industry distribution chart, Paycom Software ranks #60 out of 2836 companies for Moat Score. This places Paycom Software in the top 2% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Software company?
A good Moat Score depends on the Software industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Paycom Software's current Moat Score is 6. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paycom Software stock overvalued right now?
Based on GuruFocus' analysis, Paycom Software (HAM:0PY) is currently considered Significantly Undervalued. The stock's GF Value™ is €223.99, compared to a current price of €125.65 — trading 43.9% below its estimated fair value. The current Moat Score is 6. Paycom Software's overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Paycom Software (HAM:0PY), the current Moat Score is 6 as of Jul. 09, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Paycom Software (HAM:0PY) Overvalued in 2026?

Based on GuruFocus' analysis, Paycom Software stock appears to be undervalued. The current stock price of €125.65 is trading 43.9% below its estimated GF Value™ of €223.99. GuruFocus considers Paycom Software to be Significantly Undervalued.

Key valuation signals for HAM:0PY:

  • Moat Score: 6
  • GF Value™: €223.99 vs. price of €125.65 (43.9% below fair value)
  • GF Score™: 71/100 with 3 warning signs

No single metric tells the full story. See the HAM:0PY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Paycom Software Business Description

Address 7501 W. Memorial Road, Oklahoma, OK, USA, 73142
Founded in 1998, Paycom is a human capital management software-as-a-service provider addressing customer requirements surrounding payroll, talent acquisition, talent management, HR management, as well as time and labor. The company services businesses of all sizes within the United States and internationally. 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. As of fiscal 2024, the company serviced slightly over 37,500 customers and stored data on over 7 million employees.
71GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€125.65
Price
€223.99
GF Value