Value
7.1/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 7.8 |
| P/S | 8.2 |
| EV/EBITDA | 5.6 |
| Fwd P/E | 9.1 |
| PEG | 7.1 |
| Analyst target | 5.0 |
- ▸Forward P/E: 11.1x
- ▸PEG: 0.99
- ▸Attractively valued
PAYC · Why this verdict
Why Paycom Software (PAYC) is rated HOLD
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictHOLD
Overall score5.7/10
ConfidenceMEDIUM
MacroNEUTRAL
Per-dimension breakdown
Quality
7.2/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 10.0 |
| ROA | 5.3 |
| Gross margin | 10.0 |
| Op margin | 10.0 |
| Net margin | 10.0 |
| Current ratio | 4.2 |
| FCF quality | 4.9 |
| Moat | 6.9 |
| Rule of 40 | 3.0 |
| Piotroski F | 7.8 |
- ▸Excellent ROE: 37%
- ▸Strong margins: 22%
- ▸Earnings quality warning: 63% FCF/NI
- ▸Rule of 40: 22 (fail)
Growth
5.5/10data confidence 67%| Component | Sub-score |
|---|---|
| Rev growth | 4.4 |
| EPS growth | 6.5 |
Momentum
3.0/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 4.5 |
| MACD | 0.0 |
| OBV | 1.0 |
| MA position | 3.0 |
| Volume | 6.6 |
- ▸Volume distribution (falling OBV)
- ▸Below 200-MA, MA slope -7.9%/30d — confirmed downtrend
Sentiment
6.6/10data confidence 100%| Component | Sub-score |
|---|---|
| Analyst rating | 7.3 |
| Price target | 7.0 |
| erm sentiment | 5.2 |
Insider
5.2/10data confidence 50%| Component | Sub-score |
|---|---|
| materiality | 5.0 |
| holder change | 5.4 |
- ▸Insider selling (low materiality) — $351,250 (0.006% of mkt cap)
Peer rank
4.4/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 7.0 |
| quality rank | 8.5 |
| growth rank | 2.2 |
- ▸Superior ROE vs peers
- ▸Best-in-class margins
Technical
5.8/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 8.2 |
| support resistance | 8.9 |
| 52w position | 0.0 |
| gap | 6.0 |
Risk (lower is worse)
5.5/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 5.1 |
| days to cover | 6.7 |
| volatility | 0.6 |
| put call | 8.0 |
| implied vol | 2.5 |
| max pain risk | 7.0 |
| beta | 8.3 |
| debt equity | 5.4 |
- ▸High IV: 65%
Catalyst
5.3/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 5.6 |
| earnings timing | 5.0 |
| surprise avg | 4.9 |
| dividend safety | 6.0 |
- ▸Dividend: 110.0%
How the verdict was assembled
Engine trigger
Maintain position. Not compelling to add more.
Engine technical detail
verdict_path:
L4:PATH_F_HOLDPassed (5)
- INSIDER:OK
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:55d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (3)
- MOMENTUM:3.0<4.5
- ASYMMETRY:0.3<1.5@spot
- DEATH_CROSS:HARD_BLOCK
Warning (1)
- 8K_CSUITE_CHANGE:5.02 (officer departure/appointment)
Reward-to-Risk
0.32
Upside
+3.1%
Downside
9.5%
Sizing output
AVOID
SetupUNKNOWN — No clear chart pattern; technical signals are mixed
EdgeNO_EDGE — No clear edge identified
SuitabilityMODERATE — Balanced profile
Investment implication
None of the engine's positive-conviction paths (C-quality, D-momentum) triggered — the F-path HOLD reflects balanced signals. Strongest-cleared gate: INSIDER:OK. Top dim: Quality at 7.2; weakest: Momentum at 3.0. No conviction either direction.
The strongest dimensions are Quality at 7.2, Value at 7.1, and Sentiment at 6.6; the weakest are Momentum at 3.0, Peer rank at 4.4, and Insider at 5.2. The V9 engine flagged 3 failed gates with 1 warning, producing an asymmetric reward-to-risk of 0.32 and an engine sizing output of AVOID.