Paycom Software
Market Cap
US$17.1b
Last Updated
2020/01/21 00:54 UTC
Data Sources
Company Financials +
Executive Summary
Paycom Software, Inc. provides cloud-based human capital management (HCM) software service for small to mid-sized companies in the United States.
Rewards
Risk Analysis
Snowflake Analysis
Exceptional growth potential with flawless balance sheet.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
3.4%
PAYC
1.7%
US Software
1.2%
US Market
1 Year Return
117.0%
PAYC
40.0%
US Software
24.2%
US Market
Return vs Industry: PAYC exceeded the US Software industry which returned 39.8% over the past year.
Return vs Market: PAYC exceeded the US Market which returned 24.7% over the past year.
Shareholder returns
| PAYC | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.4% | 1.7% | 1.2% |
| 30 Day | 12.4% | 6.5% | 3.5% |
| 90 Day | 52.2% | 21.0% | 11.7% |
| 1 Year | 117.0%117.0% | 41.2%40.0% | 26.9%24.2% |
| 3 Year | 488.7%488.7% | 143.7%134.0% | 53.0%43.2% |
| 5 Year | 953.5%953.5% | 201.4%179.9% | 75.3%56.0% |
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
13 hours ago | Simply Wall St
Should You Like Paycom Software, Inc.’s (NYSE:PAYC) High Return On Capital Employed?2 weeks ago | Simply Wall St
Did You Miss Paycom Software's (NYSE:PAYC) Magnificent 1078% Share Price Gain?1 month ago | Simply Wall St
Why Paycom Software, Inc. (NYSE:PAYC) Could Be Worth WatchingValuation
Is Paycom Software undervalued compared to its fair value and its price relative to the market?
3.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PAYC ($286.51) is trading below our estimate of fair value ($307.91)
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 (99x) compared to the Software industry average (47.3x).
PE vs Market: PAYC is poor value based on its PE Ratio (99x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: PAYC is poor value based on its PEG Ratio (4.6x)
Price to Book Ratio
PB vs Industry: PAYC is overvalued based on its PB Ratio (34.8x) compared to the US Software industry average (5.9x).
Next Steps
Future Growth
How is Paycom Software forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
21.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PAYC's forecast earnings growth (21.6% per year) is above the savings rate (1.7%).
Earnings vs Market: PAYC's earnings (21.6% per year) are forecast to grow faster than the US market (14.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: PAYC's revenue (21.6% per year) is forecast to grow faster than the US market (7.5% per year).
High Growth Revenue: PAYC's revenue (21.6% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PAYC's Return on Equity is forecast to be high in 3 years time (36.2%)
Next Steps
Past Performance
How has Paycom Software performed over the past 5 years?
47.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PAYC has high quality earnings.
Growing Profit Margin: PAYC's current net profit margins (24%) are lower than last year (29.1%).
Past Earnings Growth Analysis
Earnings Trend: PAYC's earnings have grown significantly by 47.6% per year over the past 5 years.
Accelerating Growth: PAYC's earnings growth over the past year (7.9%) is below its 5-year average (47.6% per year).
Earnings vs Industry: PAYC earnings growth over the past year (7.9%) underperformed the Software industry 20.8%.
Return on Equity
High ROE: PAYC's Return on Equity (35.1%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Paycom Software's financial position?
Financial Position Analysis
Short Term Liabilities: PAYC's short term assets ($1.0B) exceed its short term liabilities ($918.5M).
Long Term Liabilities: PAYC's short term assets ($1.0B) exceed its long term liabilities ($198.7M).
Debt to Equity History and Analysis
Debt Level: PAYC's debt to equity ratio (7%) is considered satisfactory.
Reducing Debt: PAYC's debt to equity ratio has reduced from 38.5% to 7% over the past 5 years.
Debt Coverage: PAYC's debt is well covered by operating cash flow (651.3%).
Interest Coverage: PAYC's interest payments on its debt are well covered by EBIT (57.1x coverage).
Balance Sheet
Inventory Level: PAYC has a low level of unsold assets or inventory.
Debt Coverage by Assets: PAYC's debt is covered by short term assets (assets are 30.6x debt).
Next Steps
Dividend
What is Paycom Software's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate PAYC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate PAYC's dividend yield against the top 25% of dividend payers, as the company has not reported any 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
What is the CEO of Paycom Software's salary, the management and board of directors tenure and is there insider trading?
6.8yrs
Average management tenure
CEO
Chad Richison (49yo)
22yrs
Tenure
US$16,938,845
Compensation
Mr. Chad Richison has served as President, Chief Executive Officer and Founder of Paycom Software, Inc. (“Paycom”) since 1998. He has also served as a Member of Board of Directors at Paycom Software, Inc. ...
CEO Compensation Analysis
Compensation vs Market: Chad's total compensation ($USD16.94M) is above average for companies of similar size in the US market ($USD10.76M).
Compensation vs Earnings: Chad's compensation has increased by more than 20% in the past year.
Management Age and Tenure
6.8yrs
Average Tenure
52yo
Average Age
Experienced Management: PAYC's management team is seasoned and experienced (6.8 years average tenure).
Board Age and Tenure
3.3yrs
Average Tenure
61yo
Average Age
Experienced Board: PAYC's board of directors are considered experienced (3.3 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Chad Richison (49yo)
Founder
- Tenure: 22yrs
- Compensation: US$16.94m
Jon Evans (53yo)
Chief Operating Officer
- Tenure: 2.8yrs
- Compensation: US$1.44m
Tiffany McGowen
Director of Recruiting
Kristy Ross
Head of the San Francisco Office
- Tenure: 6.8yrs
Craig Boelte (56yo)
CFO, Treasurer & Corporate Secretary
- Tenure: 13.9yrs
- Compensation: US$5.06m
Jeffrey York (52yo)
Chief Sales Officer
- Tenure: 13yrs
- Compensation: US$5.18m
Brad Smith (49yo)
Chief Information Officer
- Tenure: 1.8yrs
- Compensation: US$1.58m
James Samford
Head of Investor Relations
- Tenure: 1yrs
Board Members
Ric Duques (75yo)
Independent Director
- Tenure: 3.2yrs
- Compensation: US$270.17k
Janet Haugen (60yo)
Independent Director
- Tenure: 1.9yrs
- Compensation: US$247.42k
Robert Levenson (78yo)
Independent Director
- Tenure: 12.5yrs
- Compensation: US$274.92k
Ted Peters (69yo)
Lead Independent Director
- Compensation: US$296.42k
J.C. Watts (61yo)
Independent Director
- Tenure: 3.2yrs
- Compensation: US$270.42k
Jason Clark (49yo)
Independent Director
- Tenure: 5.4yrs
- Compensation: US$274.92k
Chad Richison (49yo)
Founder
- Tenure: 22yrs
- 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: PAYC
- Exchange: NYSE
- Founded: 1998
- Industry: Application Software
- Sector: Software
- Market Cap: US$17.080b
- Shares outstanding: 57.66m
- Website: https://www.paycom.com
Number of Employees
Location
- Paycom Software, Inc.
- 7501 West Memorial Road
- Oklahoma City
- Oklahoma
- 73142
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PAYC | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Apr 2014 |
| 0PY | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Apr 2014 |
| 0KGH | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Apr 2014 |
| PAYC * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Apr 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 businesses need to manage the employment life cycle from recruitment to retirement. The company’s HCM solution offers a suite of applications in the areas of talent acquisition, including applicant tracking, candidate tracker, background checks, on-boarding, e-verify, and tax credit services; and time and labor management, such as time and attendance, scheduling/schedule exchange, time-off requests, labor allocation, labor management reports/push reporting, and geofencing/geotracking. Its HCM solution also provides payroll applications comprising payroll and tax management, Paycom pay, expense management, garnishment management, mileage tracker/fixed and variable rates, and GL concierge applications; and talent management applications that include employee self-service, compensation budgeting, performance management, executive dashboard, and Paycom learning and course content. In addition, the company’s HCM solution offers HR management applications, which comprise document and task management, government and compliance, benefits administration/benefits to carrier, COBRA administration, personnel action forms, surveys, and affordable care act applications. Paycom Software, Inc. was founded in 1998 and is headquartered in Oklahoma City, Oklahoma.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/21 00:54 |
| End of Day Share Price | 2020/01/17 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.