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PAYC

9/9 Score

Paycom Software, Inc.

Analysis Date: February 1, 2026

Buffettology Criteria

All 9 of 9 criteria passed

  • High ROE

    Return on Equity > 12%

    Value: 26.6%

  • High ROIC

    Return on Invested Capital > 9%

    Value: 18.9%

  • Cash Machine

    FCF / Assets > 5%

  • Fair Valuation

    Earnings Yield > 3.5%

    Value: 6.0%

  • Share Buybacks

    Share Count is Dropping

    Value: -2.6%

  • Defensible Moat

    Gross Profit Margin > 40%

    Value: 81.8%

  • Simple Business

    Not in a speculative sector (e.g., Biotech)

    Value: Technology

  • Conservative Debt

    Debt to Equity < 1.5

    Value: 0.05x

  • Consistent Growth

    5-Year Growth is Positive

    Value: 184.7%

Analysis Summary

Well now, this PAYC business looks like it's got some real staying power. The high returns on capital and the strong, defensible moat are certainly attractive. While the growth engine has been firing on all cylinders, the valuation is reasonable, putting it in the "watch list" category for this old investor.

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