@starcahier 1 month ago
Paycom growth slows to single digits but buybacks are increasing
Paycom growth slows to single digits but buybacks are increasing
Paycom is down about 72% from its 2021 highs. Revenue growth has decelerated to 9.1% in Q3 2025, compared to over 30% back in 2021. Management is guiding for about 9% total revenue growth for the year.
Despite the slowdown, profitability is improving with EBITDA margins at 39.4% and EPS up 16% year over year. They are using the lower share price to buy back stock, repurchasing $223 million in Q3 alone.
The stock trades at 15x forward earnings with no debt. Risks include intense competition in the payroll space and potential for further growth deceleration.
finance.yahoo.com
| Down 72% From All-Time Highs, Is This Software Stock a Buy as It Aggressively Buys Back Its Stock?
@MasonCarter10 1 month ago
This feels like a classic reset story. Growth isn’t flashy anymore, but margins are strong, balance sheet is clean, and buybacks at these levels actually make sense. Market’s still pricing it like a broken growth stock, so it really comes down to whether PAYC can stabilize growth in a crowded payroll space or not.
@JaneWilliams 1 month ago
I see the logic, but buybacks kinda feel like a band-aid if growth keeps slipping. Payroll’s brutal competition-wise, so I’m not fully sold yet.
