Paycom Software, Inc. (PAYC) — Free Cash Flow Yield
Technology
Paycom Software, Inc. provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. The company offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company's HCM solution offers payroll applications comprising better employee transaction interface, payroll and payroll tax management, payroll card, Everyday, Paycom pay, Client Action Center, expense management, garnishment administration, and GL concierge applications; talent acquisition, including applicant tracking, background checks, on-boarding, e-verify, and tax credit services; and talent management applications that include employee self-service, compensation budgeting, performance management, position management, Paycom learning, certification management. The company also offers time and labor management, such as time and attendance, scheduling, time-off requests, and labor allocation solutions. Its HCM solution provides manager on-the-go that gives supervisors and managers the ability to perform a variety of tasks, such as approving time-off requests and expense reimbursements; direct data exchange; ask here, a tool for direct line of communication to ask work-related questions; document and checklist; government and compliance; benefits administration; COBRA administration; personnel action and performance discussion forms; Paycom surveys; retirement reporting; report center; and affordable care act applications, as well as Clue, which securely collects, tracks, and manages the vaccination and testing data of the workforce; and MyCom is a communications tool that provides organizations with a central place to share information with employees. Paycom Software, Inc. was founded in 1998 and is based in Oklahoma City, Oklahoma.
| Metric | Value |
|---|---|
| FCF Yield | 4.1% |
| Technology Sector Avg FCF Yield | 4.0% |
| Annual Free Cash Flow | $404M |
| Market Cap | $9.8B |
| P/E Ratio | 23.1x |
Paycom Software, Inc.'s FCF yield of 4.1% is above the Technology sector average (4.0%).
Frequently Asked Questions
What is Paycom Software, Inc.'s (PAYC) free cash flow yield?
Paycom Software, Inc.'s (PAYC) free cash flow yield is 4.1%. That is above the Technology sector average (4.0%).
Is PAYC's free cash flow yield good?
At 4.1%, PAYC's free cash flow yield is considered fair — yields above 10% are generally excellent, 7–10% good, 4–7% fair, and below 4% weak, though context varies by sector and growth stage.
How much free cash flow does Paycom Software, Inc. generate?
Paycom Software, Inc. generated $404M in free cash flow, against a market cap of $9.8B.
How is free cash flow yield calculated?
Free cash flow yield = (Free Cash Flow ÷ Market Capitalization) × 100%. Free cash flow equals operating cash flow minus capital expenditures.
Data from public filings. Not investment advice. Calculate your own FCF yield →