Is Paycom Software, Inc. (PAYC) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2025
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 1.2% / 30% | 4.9% / 30% | 1.6% / 30% | 2.71% / 5% | ✓ HALAL |
| DJIM | 1.2% / 33% | 4.9% / 33% | 1.6% / 33% | 2.71% / 5% | ✓ HALAL |
| MSCI | 1.2% / 33% | 4.9% / 33% | 1.6% / 33% | 2.71% / 5% | ✓ HALAL |
| S&P | 1.2% / 33% | 4.9% / 33% | 1.6% / 33% | 2.71% / 5% | ✓ HALAL |
| FTSE | 1.2% / 33% | 4.9% / 33% | 1.6% / 50% | 2.71% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 87.2% | |
| Operating Margin | 28.9% | |
| Net Margin | 22.1% | |
| Return on Equity (ROE) | 27.4% | |
| Return on Assets (ROA) | 5.3% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $679M |
| Free Cash Flow | $404M |
| Total Debt | $90M |
| Debt-to-Equity | 5.2 |
| Current Ratio | 1.1 |
| Total Assets | $7.6B |
Price & Trading
| Last Close | $123.03 |
| 50-Day MA | $130.29 |
| 200-Day MA | $183.76 |
| Avg Volume | 1.9M |
| Beta | 0.8 |
|
52-Week Range
$104.90
| |
About Paycom Software, Inc. (PAYC)
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.
Purification Calculator
As a halal stock with 2.71% impermissible income, you need to purify your dividends.
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Frequently Asked Questions
Is Paycom Software, Inc. (PAYC) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Paycom Software, Inc. is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Paycom Software, Inc.'s debt ratio?
Paycom Software, Inc.'s debt ratio is 1.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 1.2%.
Does Paycom Software, Inc. require dividend purification?
Yes, Paycom Software, Inc. has an impermissible income ratio of 2.71%, which means 2.71% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.
What are Paycom Software, Inc.'s key financial metrics?
Paycom Software, Inc. has a market capitalization of $6.4B, trailing P/E ratio of 14.5, and revenue of $2.1B. The company maintains a gross margin of 87.2% and a net margin of 22.1%. Return on equity stands at 27.4%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.