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PAYC

Paycom Software NYSE:PAYC Stock Report

Last Price

US$288.56

Market Cap

US$16.7b

7D

-2.3%

1Y

-11.6%

Updated

15 May, 2022

Data

Company Financials +
PAYC fundamental analysis
Snowflake Score
Valuation1/6
Future Growth5/6
Past Performance6/6
Financial Health6/6
Dividends0/6

PAYC Stock Overview

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.

Paycom Software Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Paycom Software
Historical stock prices
Current Share PriceUS$288.56
52 Week HighUS$558.97
52 Week LowUS$259.95
Beta1.54
1 Month Change-9.64%
3 Month Change-16.53%
1 Year Change-11.57%
3 Year Change36.92%
5 Year Change344.69%
Change since IPO1,779.87%

Recent News & Updates

May 13
Is It Time To Consider Buying Paycom Software, Inc. (NYSE:PAYC)?

Is It Time To Consider Buying Paycom Software, Inc. (NYSE:PAYC)?

Paycom Software, Inc. ( NYSE:PAYC ) received a lot of attention from a substantial price movement on the NYSE over the...

Shareholder Returns

PAYCUS SoftwareUS Market
7D-2.3%-3.8%-2.5%
1Y-11.6%-10.3%-10.4%

Return vs Industry: PAYC underperformed the US Software industry which returned -10.3% over the past year.

Return vs Market: PAYC underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is PAYC's price volatile compared to industry and market?
PAYC volatility
PAYC Average Weekly Movement8.6%
Software Industry Average Movement11.4%
Market Average Movement7.8%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: PAYC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: PAYC's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19985,385Chad Richisonhttps://www.paycom.com

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 analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company’s HCM solution provides 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, and Microfence, a proprietary Bluetooth.

Paycom Software Fundamentals Summary

How do Paycom Software's earnings and revenue compare to its market cap?
PAYC fundamental statistics
Market CapUS$16.75b
Earnings (TTM)US$223.27m
Revenue (TTM)US$1.14b

75.0x

P/E Ratio

14.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PAYC income statement (TTM)
RevenueUS$1.14b
Cost of RevenueUS$139.89m
Gross ProfitUS$996.95m
Other ExpensesUS$773.68m
EarningsUS$223.27m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.85
Gross Margin87.69%
Net Profit Margin19.64%
Debt/Equity Ratio2.8%

How did PAYC perform over the long term?

See historical performance and comparison

Valuation

Is Paycom Software undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


4.2%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: PAYC ($288.56) is trading below our estimate of fair value ($301.22)

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 (75x) compared to the US Software industry average (41.9x).

PE vs Market: PAYC is poor value based on its PE Ratio (75x) compared to the US market (15.5x).


Price to Earnings Growth Ratio

PEG Ratio: PAYC is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: PAYC is overvalued based on its PB Ratio (16.6x) compared to the US Software industry average (3.6x).


Future Growth

How is Paycom Software forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


25.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PAYC's forecast earnings growth (25.1% per year) is above the savings rate (1.9%).

Earnings vs Market: PAYC's earnings (25.1% per year) are forecast to grow faster than the US market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PAYC's revenue (18.8% per year) is forecast to grow faster than the US market (8% per year).

High Growth Revenue: PAYC's revenue (18.8% 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 (25.4%)


Past Performance

How has Paycom Software performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


14.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PAYC has high quality earnings.

Growing Profit Margin: PAYC's current net profit margins (19.6%) are higher than last year (16.7%).


Past Earnings Growth Analysis

Earnings Trend: PAYC's earnings have grown by 14.6% per year over the past 5 years.

Accelerating Growth: PAYC's earnings growth over the past year (53.9%) exceeds its 5-year average (14.6% per year).

Earnings vs Industry: PAYC earnings growth over the past year (53.9%) exceeded the Software industry 29.6%.


Return on Equity

High ROE: PAYC's Return on Equity (22.1%) is considered high.


Financial Health

How is Paycom Software's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PAYC's short term assets ($4.4B) exceed its short term liabilities ($4.1B).

Long Term Liabilities: PAYC's short term assets ($4.4B) exceed its long term liabilities ($323.0M).


Debt to Equity History and Analysis

Debt Level: PAYC has more cash than its total debt.

Reducing Debt: PAYC's debt to equity ratio has reduced from 21.6% to 2.8% over the past 5 years.

Debt Coverage: PAYC's debt is well covered by operating cash flow (1208.7%).

Interest Coverage: PAYC earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as PAYC has not reported any payouts.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.6yrs

Average management tenure


CEO

Chad Richison (51 yo)

24.33yrs

Tenure

US$2,958,410

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 ($USD2.96M) is below average for companies of similar size in the US market ($USD13.26M).

Compensation vs Earnings: Chad's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PAYC's management team is seasoned and experienced (6.6 years average tenure).


Board Members

Experienced Board: PAYC's board of directors are considered experienced (7.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PAYC insiders have only sold shares 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 employee growth, exchange listings and data sources


Key Information

  • Name: Paycom Software, Inc.
  • Ticker: PAYC
  • Exchange: NYSE
  • Founded: 1998
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$16.749b
  • Shares outstanding: 58.04m
  • Website: https://www.paycom.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/15 00:00
End of Day Share Price2022/05/13 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.