DB:0PY

Stock Analysis Report

Paycom Software

Executive Summary

Paycom Software, Inc. provides cloud-based human capital management (HCM) software service for small to mid-sized companies in the United States.

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Paycom Software's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

7.2%

DB:0PY

2.2%

DE Software

3.2%

DE Market


1 Year Return

75.6%

DB:0PY

3.1%

DE Software

-9.7%

DE Market

0PY outperformed the Software industry which returned 5.7% over the past year.

0PY outperformed the Market in Germany which returned -9.6% over the past year.


Share holder returns

0PYIndustryMarket
7 Day7.2%2.2%3.2%
30 Day7.7%-4.3%-4.4%
90 Day20.4%-4.9%-2.0%
1 Year75.6%75.6%4.5%3.1%-6.9%-9.7%
3 Year397.2%397.2%48.1%42.1%11.8%2.2%
5 Year1600.0%1600.0%102.3%87.9%26.9%9.5%

Price Volatility Vs. Market

How volatile is Paycom Software's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Paycom Software undervalued based on future cash flows and its price relative to the stock market?

91.61x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Paycom Software's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Paycom Software's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Paycom Software is overvalued based on earnings compared to the DE Software industry average.

Paycom Software is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

Paycom Software is poor value based on expected growth next year.


Price Based on Value of Assets

Paycom Software is overvalued based on assets compared to the DE Software industry average.


Next Steps

Future Growth

How is Paycom Software expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

18.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Paycom Software's revenue is expected to grow significantly at over 20% yearly.

Paycom Software's earnings are expected to grow by 18.4% yearly, however this is not considered high growth (20% yearly).

Paycom Software's revenue growth is expected to exceed the Germany market average.

Paycom Software's earnings growth is expected to exceed the Germany market average.

Paycom Software's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Paycom Software will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Paycom Software performed over the past 5 years?

51.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Paycom Software has delivered over 20% year on year earnings growth in the past 5 years.

Paycom Software's 1-year earnings growth is less than its 5-year average (6.7% vs 51.5%)

Paycom Software's earnings growth has not exceeded the DE Software industry average in the past year (6.7% vs 19.1%).


Return on Equity

Paycom Software has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Paycom Software used its assets more efficiently than the DE Software industry average last year based on Return on Assets.


Return on Capital Employed

Paycom Software's use of capital has not improved over the past 3 years (Return on Capital Employed).


Next Steps

Financial Health

How is Paycom Software's financial position?


Financial Position Analysis

Paycom Software is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Paycom Software's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Paycom Software's level of debt (7.7%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (40.4% vs 7.7% today).

Debt is well covered by operating cash flow (620%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 62.9x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 38.4x debt.


Next Steps

Dividend

What is Paycom Software's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Paycom Software's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Paycom Software's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Paycom Software has not reported any payouts.

Unable to verify if Paycom Software's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Paycom Software has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Paycom Software's dividends in 3 years as they are not expected to pay a notable one for Germany.


Next Steps

Management

What is the CEO of Paycom Software's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

Chad Richison (49yo)

21.6yrs

Tenure

US$16,938,845

Compensation

Mr. Chad Richison has served as President, Chief Executive Officer and Founder of Paycom Software, Inc. (“Paycom”) since 1998. He has also served as a Member of Board of Directors at Paycom Software, Inc.  ...


CEO Compensation Analysis

Chad's remuneration is higher than average for companies of similar size in Germany.

Chad's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

6.3yrs

Average Tenure

52yo

Average Age

The average tenure for the Paycom Software management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

2.9yrs

Average Tenure

61yo

Average Age

The average tenure for the Paycom Software board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Chad Richison (49yo)

    Founder

    • Tenure: 21.6yrs
    • Compensation: US$16.94m
  • Jon Evans (53yo)

    Chief Operating Officer

    • Tenure: 2.4yrs
    • Compensation: US$1.44m
  • Tiffany McGowen

    Director of Recruiting

    • Tenure: 0.0yrs
  • Kristy Ross

    Head of the San Francisco Office

    • Tenure: 6.3yrs
  • Craig Boelte (56yo)

    CFO, Treasurer & Corporate Secretary

    • Tenure: 13.5yrs
    • Compensation: US$5.06m
  • Jeffrey York (52yo)

    Chief Sales Officer

    • Tenure: 12.6yrs
    • Compensation: US$5.18m
  • Brad Smith (49yo)

    Chief Information Officer

    • Tenure: 1.3yrs
    • Compensation: US$1.58m
  • James Samford

    Head of Investor Relations

    • Tenure: 0.6yrs

Board Members

  • Ric Duques (75yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$270.17k
  • Janet Haugen (60yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: US$247.42k
  • Robert Levenson (78yo)

    Director

    • Tenure: 12.1yrs
    • Compensation: US$274.92k
  • Ted Peters (69yo)

    Lead Independent Director

    • Tenure: 0.0yrs
    • Compensation: US$296.42k
  • J.C. Watts (61yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$270.42k
  • Jason Clark (49yo)

    Director

    • Tenure: 5.0yrs
    • Compensation: US$274.92k
  • Chad Richison (49yo)

    Founder

    • Tenure: 21.6yrs
    • Compensation: US$16.94m

Company Information

Paycom Software, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Paycom Software, Inc.
  • Ticker: 0PY
  • Exchange: DB
  • Founded: 1998
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$14.522b
  • Listing Market Cap: US$13.088b
  • Shares outstanding: 57.65m
  • Website: https://www.paycom.com

Number of Employees


Location

  • Paycom Software, Inc.
  • 7501 West Memorial Road
  • Oklahoma City
  • Oklahoma
  • 73142
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PAYCNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2014
0PYDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2014
0KGHLSE (London Stock Exchange)YesCommon StockGBUSDApr 2014
PAYC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 2014

Biography

Paycom Software, Inc. provides cloud-based human capital management (HCM) software service for small to mid-sized companies in the United States. It provides functionality and data analytics that businesse ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 21:49
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.