Paycom reported second-quarter earnings, with sales up 10% year over year to $531 million and an adjusted EBITDA margin of 44%, up 330 basis points year over year. Management raised full-year guidance, now expecting revenue of $2.21 billion and adjusted EBITDA margin of 46% at the midpoint.
Paycom’s unified architecture positions it well for agentic AI deployments and cross-platform analytics over more acquisitive peers.
Given its exposure to cyclical small and midsize businesses, Paycom faces downside risk from declines in labor force participation rates and new business formations.
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Metric
|
PAYC
|
PCTY
|
ADP
|
|---|---|---|---|
Price/Earnings (Normalized) | 22.72 | 17.80 | 24.55 |
Price/Book Value | 16.91 | 6.47 | 18.00 |
Price/Sales | 5.32 | 4.58 | 5.02 |
Price/Cash Flow | 12.93 | 13.43 | 16.81 |
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Metric
|
PAYC
|
PCTY
|
ADP
|
|---|---|---|---|
Quick Ratio | 0.08 | 0.09 | 0.15 |
Current Ratio | 1.07 | 1.09 | 1.05 |
Interest Coverage | 42.96 | — | 12.67 |
|
Metric
|
PAYC
|
PCTY
|
ADP
|
|---|---|---|---|
Return on Assets (Normalized) | 10.73% | 7.06% | 7.01% |
Return on Equity (Normalized) | 41.93% | 31.37% | 71.57% |
Return on Invested Capital (Normalized) | 32.87% | 27.78% | 35.68% |
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1-Day Chart
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Name
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Price
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Morningstar Rating for Stocks
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United States