Paycom Software
Market Cap
US$19.7b
Last Updated
2021/05/06 23:24 UTC
Data Sources
Company Financials +
Executive Summary
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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with high 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
Stable Share Price: PAYC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: PAYC's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-17.0%
PAYC
-4.2%
US Software
-1.7%
US Market
1 Year Return
21.7%
PAYC
39.5%
US Software
51.8%
US Market
Return vs Industry: PAYC underperformed the US Software industry which returned 41.7% over the past year.
Return vs Market: PAYC underperformed the US Market which returned 52.8% over the past year.
Shareholder returns
| PAYC | Industry | Market | |
|---|---|---|---|
| 7 Day | -17.0% | -4.2% | -1.7% |
| 30 Day | -13.4% | -1.8% | 1.5% |
| 90 Day | -24.7% | -5.3% | 3.1% |
| 1 Year | 21.7%21.7% | 40.5%39.5% | 54.4%51.8% |
| 3 Year | 198.7%198.7% | 123.9%117.3% | 63.0%52.8% |
| 5 Year | 742.3%742.3% | 301.5%279.7% | 127.2%101.9% |
Long-Term 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
2 days ago | Simply Wall St
Should You Investigate Paycom Software, Inc. (NYSE:PAYC) At US$354?3 weeks ago | Simply Wall St
We Think Paycom Software (NYSE:PAYC) Can Stay On Top Of Its Debt1 month ago | Simply Wall St
Read This Before Buying Paycom Software, Inc. (NYSE:PAYC) SharesValuation
Is Paycom Software undervalued compared to its fair value and its price relative to the market?
10.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PAYC ($327.15) is trading below our estimate of fair value ($364.31)
Significantly Below Fair Value: PAYC is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: PAYC is poor value based on its PE Ratio (130x) compared to the US Software industry average (49.8x).
PE vs Market: PAYC is poor value based on its PE Ratio (130x) compared to the US market (20.4x).
Price to Earnings Growth Ratio
PEG Ratio: PAYC is poor value based on its PEG Ratio (4.8x)
Price to Book Ratio
PB vs Industry: PAYC is overvalued based on its PB Ratio (25.3x) compared to the US Software industry average (7.8x).
Future Growth
How is Paycom Software forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
27.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PAYC's forecast earnings growth (27.4% per year) is above the savings rate (2%).
Earnings vs Market: PAYC's earnings (27.4% per year) are forecast to grow faster than the US market (15.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: PAYC's revenue (21.5% per year) is forecast to grow faster than the US market (9.2% per year).
High Growth Revenue: PAYC's revenue (21.5% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if PAYC's Return on Equity is forecast to be high in 3 years time
Past Performance
How has Paycom Software performed over the past 5 years?
24.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PAYC has high quality earnings.
Growing Profit Margin: PAYC's current net profit margins (16.6%) are lower than last year (25.2%).
Past Earnings Growth Analysis
Earnings Trend: PAYC's earnings have grown significantly by 24.1% per year over the past 5 years.
Accelerating Growth: PAYC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: PAYC had negative earnings growth (-26.1%) over the past year, making it difficult to compare to the Software industry average (22.1%).
Return on Equity
High ROE: PAYC's Return on Equity (19.5%) is considered low.
Financial Health
How is Paycom Software's financial position?
Financial Position Analysis
Short Term Liabilities: PAYC's short term assets ($2.6B) exceed its short term liabilities ($2.4B).
Long Term Liabilities: PAYC's short term assets ($2.6B) exceed its long term liabilities ($235.7M).
Debt to Equity History and Analysis
Debt Level: PAYC's debt to equity ratio (2.6%) is considered satisfactory.
Reducing Debt: PAYC's debt to equity ratio has reduced from 21.6% to 2.6% over the past 5 years.
Debt Coverage: PAYC's debt is well covered by operating cash flow (1200%).
Interest Coverage: PAYC's interest payments on its debt are well covered by EBIT (138.4x coverage).
Balance Sheet
Dividend
What is Paycom Software current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate PAYC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate PAYC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if PAYC's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if PAYC's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of PAYC's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.2yrs
Average management tenure
CEO
Chad Richison (50 yo)
23.33yrs
Tenure
US$211,131,206
Compensation
Mr. Chad R. Richison has served as President, Chief Executive Officer and Founder of Paycom Software, Inc. (“Paycom”) since 1998. He has been a Member of Board of Directors at Paycom Software, Inc. since 1...
CEO Compensation Analysis
Compensation vs Market: Chad's total compensation ($USD211.13M) is above average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Chad's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: PAYC's management team is considered experienced (4.2 years average tenure).
Board Members
Experienced Board: PAYC's board of directors are considered experienced (4.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Paycom Software, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Paycom Software, Inc.
- Ticker: PAYC
- Exchange: NYSE
- Founded: 1998
- Industry: Application Software
- Sector: Software
- Market Cap: US$19.695b
- Shares outstanding: 57.74m
- Website: https://www.paycom.com
Number of Employees
Location
- Paycom Software, Inc.
- 7501 West Memorial Road
- Oklahoma City
- Oklahoma
- 73142
- United States
Listings
Biography
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. It offers functionality and data...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/06 23:24 |
| End of Day Share Price | 2021/05/06 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.