Paycom shares fall 50%, now offering 8.2% earnings yield with $2B buyback boosting value play

Paycom's stock has dropped 50% over the past year, shifting its appeal from growth to a value investment with an 8.2% pretax earnings yield. Management projects 7%–8% revenue growth and a 44% adjusted EBITDA margin by 2026, signaling solid long-term profitability. A $2 billion share buyback, representing 34% of market cap and funded by credit, shows strong confidence in the company's future. Despite risks like AI-driven revenue cannibalization, Paycom's high client retention and stable margins make it attractive for long-term investors.