Paycom’s revenue growth has slowed but remains strong, with 9% total revenue growth expected in 2025. Share repurchases are crucial as the stock is far below its 2021 peak. The company sells payroll and HR software with mostly recurring revenue. The stock’s valuation reset is due to decelerating growth, with revenue up 9.1% in Q3 2025, a significant drop from 2021. Paycom’s profitability is solid, with an adjusted EBITDA margin of 39.4% and non-GAAP EPS up 16.2% in Q3. Share repurchases are significant, reducing the share count by about 10% if continued. Despite risks, Paycom’s conservative valuation and growth potential make it a compelling buy. The Motley Fool’s Stock Advisor team does not currently recommend Paycom Software.

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