Paycom Software
Market Cap
US$9.5b
Last Updated
2020/04/04 06:11 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
Flawless balance sheet with solid track record.
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
-21.0%
PAYC
-1.0%
US Software
-2.0%
US Market
1 Year Return
-10.1%
PAYC
6.5%
US Software
-15.1%
US Market
Return vs Industry: PAYC underperformed the US Software industry which returned 6.5% over the past year.
Return vs Market: PAYC exceeded the US Market which returned -15.1% over the past year.
Shareholder returns
| PAYC | Industry | Market | |
|---|---|---|---|
| 7 Day | -21.0% | -1.0% | -2.0% |
| 30 Day | -41.5% | -15.0% | -19.7% |
| 90 Day | -39.5% | -8.6% | -23.2% |
| 1 Year | -10.1%-10.1% | 7.6%6.5% | -13.4%-15.1% |
| 3 Year | 185.2%185.2% | 100.0%91.4% | 10.9%3.7% |
| 5 Year | 419.4%419.4% | 162.3%143.8% | 28.4%14.4% |
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
1 week ago | Simply Wall St
Does Paycom Software, Inc.'s (NYSE:PAYC) 32% Earnings Growth Reflect The Long-Term Trend?3 weeks ago | Simply Wall St
How Does Paycom Software's (NYSE:PAYC) P/E Compare To Its Industry, After The Share Price Drop?3 weeks ago | Simply Wall St
Is Paycom Software, Inc. (NYSE:PAYC) Excessively Paying Its CEO?Valuation
Is Paycom Software undervalued compared to its fair value and its price relative to the market?
52.62x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: PAYC ($165.01) is trading above our estimate of fair value ($101.36)
Significantly Below Fair Value: PAYC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: PAYC is poor value based on its PE Ratio (52.6x) compared to the Software industry average (38.3x).
PE vs Market: PAYC is poor value based on its PE Ratio (52.6x) compared to the US market (12.4x).
Price to Earnings Growth Ratio
PEG Ratio: PAYC is poor value based on its PEG Ratio (3.5x)
Price to Book Ratio
PB vs Industry: PAYC is overvalued based on its PB Ratio (18.1x) compared to the US Software industry average (4.1x).
Next Steps
Future Growth
How is Paycom Software forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
14.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PAYC's forecast earnings growth (14.8% per year) is above the savings rate (1.7%).
Earnings vs Market: PAYC's earnings (14.8% per year) are forecast to grow faster than the US market (13.4% per year).
High Growth Earnings: PAYC's earnings are forecast to grow, but not significantly.
Revenue vs Market: PAYC's revenue (19.7% per year) is forecast to grow faster than the US market (7.1% per year).
High Growth Revenue: PAYC's revenue (19.7% per year) is forecast to grow slower 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%)
Next Steps
Past Performance
How has Paycom Software performed over the past 5 years?
44.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PAYC has high quality earnings.
Growing Profit Margin: PAYC's current net profit margins (24.5%) are higher than last year (24.2%).
Past Earnings Growth Analysis
Earnings Trend: PAYC's earnings have grown significantly by 44.1% per year over the past 5 years.
Accelerating Growth: PAYC's earnings growth over the past year (31.8%) is below its 5-year average (44.1% per year).
Earnings vs Industry: PAYC earnings growth over the past year (31.8%) exceeded the Software industry 18.4%.
Return on Equity
High ROE: PAYC's Return on Equity (34.3%) is considered high.
Next Steps
Financial Health
How is Paycom Software's financial position?
Financial Position Analysis
Short Term Liabilities: PAYC's short term assets ($1.9B) exceed its short term liabilities ($1.8B).
Long Term Liabilities: PAYC's short term assets ($1.9B) exceed its long term liabilities ($206.8M).
Debt to Equity History and Analysis
Debt Level: PAYC's debt to equity ratio (6.2%) is considered satisfactory.
Reducing Debt: PAYC's debt to equity ratio has reduced from 36.3% to 6.2% over the past 5 years.
Debt Coverage: PAYC's debt is well covered by operating cash flow (687.2%).
Interest Coverage: PAYC's interest payments on its debt are well covered by EBIT (97.7x 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 57.3x debt).
Next Steps
Dividend
What is Paycom Software's 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 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
How experienced are the management team and are they aligned to shareholders interests?
7.0yrs
Average management tenure
CEO
Chad Richison (49yo)
22.25s
Tenure
US$21,138,558
Compensation
Mr. Chad Richison has served as President, Chief Executive Officer and Founder of Paycom Software, Inc. (“Paycom”) since 1998. He has also served as a Member of Board of Directors at Paycom Software, Inc. ...
CEO Compensation Analysis
Compensation vs Market: Chad's total compensation ($USD21.14M) is above average for companies of similar size in the US market ($USD7.63M).
Compensation vs Earnings: Chad's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 22.25yrs | US$21.14m | 7.39% $703.3m | |
| CFO, Treasurer & Corporate Secretary | 14.17yrs | US$6.46m | 0.70% $66.7m | |
| Chief Operating Officer | 3.08yrs | US$2.02m | 0.070% $6.6m | |
| Chief Information Officer | 2yrs | US$2.04m | 0.10% $9.6m | |
| Chief Sales Officer | 13.25yrs | US$6.64m | 1.21% $115.0m | |
| Head of Investor Relations | 1.25yrs | no data | no data | |
| Director of Recruiting | no data | no data | no data | |
| Head of the San Francisco Office | 7yrs | no data | no data |
7.0yrs
Average Tenure
52yo
Average Age
Experienced Management: PAYC's management team is seasoned and experienced (7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 22.25yrs | US$21.14m | 7.39% $703.3m | |
| Independent Director | 3.42yrs | US$311.47k | 0.0082% $781.9k | |
| Independent Director | 2.17yrs | US$312.35k | 0.0048% $458.5k | |
| Independent Director | 12.75yrs | US$312.47k | 0.14% $13.7m | |
| Lead Independent Director | no data | US$335.10k | 0.044% $4.2m | |
| Independent Director | 3.42yrs | US$307.97k | 0.0082% $781.9k | |
| Independent Director | 5.67yrs | US$312.47k | 0.010% $949.3k |
3.5yrs
Average Tenure
61yo
Average Age
Experienced Board: PAYC's board of directors are considered experienced (3.5 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$9.512b
- 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
| 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 |
| 0PY | BRSE (Berne Stock Exchange) | Yes | Common Stock | CH | CHF | 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, mileage tracker/fixed and variable rates, garnishment management, and GL concierge applications; and talent management applications that include employee self-service, compensation budgeting, performance management, and Paycom learning and course content, as well as my analytics, which offer employment predictor reporting. In addition, the company’s HCM solution offers HR management applications comprising 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/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 | 2020/04/04 06:11 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.