PAYC PAYC

Name: PAYC Crucible Score
Creator: Kaladin Capital Intelligence

UnknownUnknownN/A📅 Scored March 19, 2026

Price at analysis: $119.82

Crucible Score

74.3

B+

Quality × Value Composite

KQI — Quality

69.6

Fundamental Quality Index

KVI — Value

80.1

A-

Valuation Attractiveness Index

Crucible Verdict — PAYC

Paycom Software (PAYC) presents a quality-value disconnect, with strong financial metrics (85 score) offset by weak growth prospects (48) and poor diversification (27). The 24% discount to fair value reflects concerns about PAYC's ability to sustain premium valuations amid slowing expansion. Management's insider selling despite strong earnings beats signals caution about near-term momentum.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality

85.0

Growth Profile

47.7

Moat Durability

75.3

Management Effectiveness

77.7

Diversification & Resilience

27.2

Market Position

58.0

Weakest dimension: Diversification & Resilience (27.2)

◆ KVI Value Dimensions

DCF Margin of Safety

70.6

FCF Yield & Cash Returns

73.6

Relative Valuation

95.0

Growth-Adjusted Value

79.8

Historical Valuation

94.3

Macro Context

92.3

◆ DCF Valuation Scenarios

Bear Case

$95.42

Base Case

$148.63

Bull Case

$218.75

Price at Analysis

$119.82

Scenario	Fair Value	Rev CAGR (5yr)	Terminal Margin	WACC
🔴 Bear	$95.42	7.0%	26.0%	9.3%
🟢 Base	$148.63	10.0%	29.0%	8.8%
🟢 Bull	$218.75	13.0%	33.0%	8.3%

Key Assumptions: Revenue growth decelerating from ~14% historical CAGR as PAYC matures in the mid-market HCM space; operating margins anchored around the 26-34% historical range with bear case reflecting competitive pressure and bull case reflecting operating leverage on recurring revenue. Capex intensity of ~12% reflects continued investment in data centers and product development, consistent with trailing averages. WACC derived from CAPM using 0.81 beta and 5.5% ERP, with scenario adjustments of +/-50bps.

◆ Financial Snapshot

Profitability

Gross Margin80.8%

Operating Margin27.6%

Net Margin22.1%

ROIC19.7%

ROE28.9%

Balance Sheet

Balance SheetCR: 1.09

Cash ConversionFCF/EPS: 0.90x

Capital IntensityCapex/Rev: 13.2%

Altman Z-Score1.73 (Distress)

Piotroski F-Score6/9 (Good)

Growth

Revenue CAGR-33.6% CAGR (suspect)

Earnings CAGR-30.6% CAGR (suspect)

Growth ConsistencyCV: 3.10

Segment Breadth2/2 growing (100%)

Quarterly TrendMargin↘, WC↓, Exp↓

Earnings CredibilityTends to Beat

◆ Analyst Consensus & Leadership

Leadership & Governance

CEOJason Schulman · 7 years

CEO Ownership10.9%

Compensation73% performance-based

Insider ActivitySelling

Capital AllocationROIC 19.7% vs WACC 1.8%

Earnings Beat Rate79% (17/22)

◆ Related Companies in Our Universe

Other Unknown companies scored by the Crucible:

ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+

Methodology All Scores Crucible Briefs Performance @KaladinCI

Analysis conducted March 19, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.