Paycom Shares Trade at 8.2% Pretax Yield After 50% Decline; Management Authorizes $2 Billion Buyback
Paycom has shifted from growth to value play after a 50% share price decline, now trading at an 8.2% pretax earnings yield. Management authorized a $2 billion buyback—34% of market cap—while guiding for 7–8% revenue growth and 44% adjusted EBITDA margin in 2026.
Paycom has completed a transition from growth stock to value equity after shares fell 50% over the past year, leaving the human resources software provider trading at an 8.2% pretax earnings yield [1]. Management authorized a $2 billion share repurchase program, equal to 34% of the company's market capitalization, financed through a credit facility [1].
The board's repurchase decision follows management guidance for 7–8% revenue growth and a 44% adjusted EBITDA margin in 2026 [1]. The buyback size—more than one-third of outstanding equity value—signals executive confidence that current valuation materially understates long-term profitability and cash generation in the payroll and workforce management software segment.
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