PAYC (Paycom Software) Quality Rank

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

PAYC Paycom Software Inc PAYC
81 GF Score
Price $144.22
GF Value $256.25
Valuation Significantly Undervalued
! 3 Warning Signs
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What is Paycom Software Quality Rank?

The Quality Rank measures the business quality of a company relative to other companies. It is ranked based on the strength of the balance sheet, as well as the profitability and growth of the business. The ranked companies are split in equal numbers and then ranked from 1 to 10, with 10 being the highest.

The rank of balance sheet (30%)

The rank of balance sheet is done through the ranking of:
  • Interest coverage
  • Zscore
  • Debt to revenue
  • Equity to asset
  • Cash to debt

The rank of Profitability (70%)

The ranking of Profitability is done by ranking:
  • Operating margin mean rank (10-year mean average profit margine)
  • Operating margin growth rank
  • Fscore
  • Predictability rank
  • Revenue growth rank (5 year), when the growth is higher than 25%, set it as 25%
  • Num of year profit (number of years that is profitable within the last 10 years)
  • ROIC median (10-year median of ROIC)

Paycom Software Quality Rank Related Terms

PAYC
81GF Score
Paycom Software Inc PAYC
Quality Rank is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Is Paycom Software (PAYC) Overvalued in 2026?

Based on GuruFocus' analysis, Paycom Software stock appears to be undervalued. The current stock price of $144.22 is trading 43.7% below its estimated GF Value™ of $256.25. GuruFocus considers Paycom Software to be Significantly Undervalued.

Key valuation signals for PAYC:

  • Quality Rank:
  • GF Value™: $256.25 vs. price of $144.22 (43.7% below fair value)
  • GF Score™: 81/100 with 3 warning signs

No single metric tells the full story. See the PAYC 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.
81GF Score

Get the complete analysis for PAYC

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

$144.22
Price
$256.25
GF Value