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
|Historical stock prices|
|Current Share Price||US$512.63|
|52 Week High||US$302.44|
|52 Week Low||US$529.92|
|1 Month Change||5.92%|
|3 Month Change||32.96%|
|1 Year Change||36.31%|
|3 Year Change||315.15%|
|5 Year Change||890.97%|
|Change since IPO||3,239.61%|
Recent News & Updates
Calculating The Fair Value Of Paycom Software, Inc. (NYSE:PAYC)
Does the October share price for Paycom Software, Inc. ( NYSE:PAYC ) reflect what it's really worth? Today, we will...
Paycom: In-Depth Valuation Analysis
The DCF model indicates that Paycom stock is overvalued by 18%. A Relative valuation analysis against the market's largest 500 companies indicates a 64% overvaluation. Our model anticipates a single-digit return for the upcoming 10-year period.
There Are Reasons To Feel Uneasy About Paycom Software's (NYSE:PAYC) Returns On Capital
There are a few key trends to look for if we want to identify the next multi-bagger. One common approach is to try and...
At US$457, Is It Time To Put Paycom Software, Inc. (NYSE:PAYC) On Your Watch List?
Paycom Software, Inc. ( NYSE:PAYC ) received a lot of attention from a substantial price increase on the NYSE over the...
|PAYC||US Software||US Market|
Return vs Industry: PAYC matched the US Software industry which returned 35.7% over the past year.
Return vs Market: PAYC exceeded the US Market which returned 30.5% over the past year.
Stable Share Price: PAYC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: PAYC's weekly volatility (4%) has been stable over the past year.
About the Company
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.
Paycom Software Fundamentals Summary
|PAYC fundamental statistics|
Is PAYC overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|PAYC income statement (TTM)|
|Cost of Revenue||US$108.25m|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Nov 02, 2021
|Earnings per share (EPS)||2.91|
|Net Profit Margin||18.11%|
How did PAYC perform over the long term?See historical performance and comparison
Is Paycom Software undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: PAYC ($512.63) is trading above our estimate of fair value ($424.87)
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 (175.9x) compared to the US Software industry average (56.7x).
PE vs Market: PAYC is poor value based on its PE Ratio (175.9x) compared to the US market (18.1x).
Price to Earnings Growth Ratio
PEG Ratio: PAYC is poor value based on its PEG Ratio (6.1x)
Price to Book Ratio
PB vs Industry: PAYC is overvalued based on its PB Ratio (37.5x) compared to the US Software industry average (7.3x).
How is Paycom Software forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PAYC's forecast earnings growth (29% per year) is above the savings rate (2%).
Earnings vs Market: PAYC's earnings (29% per year) are forecast to grow faster than the US market (15.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: PAYC's revenue (20.8% per year) is forecast to grow faster than the US market (9.9% per year).
High Growth Revenue: PAYC's revenue (20.8% 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 (36.9%)
How has Paycom Software performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PAYC has high quality earnings.
Growing Profit Margin: PAYC's current net profit margins (18.1%) are lower than last year (22.2%).
Past Earnings Growth Analysis
Earnings Trend: PAYC's earnings have grown significantly by 20.9% 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 (-4.2%) over the past year, making it difficult to compare to the Software industry average (24.1%).
Return on Equity
High ROE: PAYC's Return on Equity (21.3%) is considered high.
How is Paycom Software's financial position?
Financial Position Analysis
Short Term Liabilities: PAYC's short term assets ($2.4B) exceed its short term liabilities ($2.1B).
Long Term Liabilities: PAYC's short term assets ($2.4B) exceed its long term liabilities ($295.6M).
Debt to Equity History and Analysis
Debt Level: PAYC's debt to equity ratio (3.8%) is considered satisfactory.
Reducing Debt: PAYC's debt to equity ratio has reduced from 22.7% to 3.8% over the past 5 years.
Debt Coverage: PAYC's debt is well covered by operating cash flow (886.4%).
Interest Coverage: PAYC earns more interest than it pays, so coverage of interest payments is not a concern.
What is Paycom Software current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate PAYC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate PAYC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if PAYC's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if PAYC's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of PAYC's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Chad Richison (51 yo)
Mr. Chad R. Richison has served as President, Chief Executive Officer and Founder of Paycom Software, Inc. (“Paycom”) since 1998. He has been a Member of Board of Directors at Paycom Software, Inc. since 1...
CEO Compensation Analysis
Compensation vs Market: Chad's total compensation ($USD211.13M) is above average for companies of similar size in the US market ($USD11.17M).
Compensation vs Earnings: Chad's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: PAYC's management team is considered experienced (4.6 years average tenure).
Experienced Board: PAYC's board of directors are considered experienced (5 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Paycom Software, Inc.'s employee growth, exchange listings and data sources
- Name: Paycom Software, Inc.
- Ticker: PAYC
- Exchange: NYSE
- Founded: 1998
- Industry: Application Software
- Sector: Software
- Market Cap: US$29.690b
- Shares outstanding: 57.92m
- Website: https://www.paycom.com
Number of Employees
- Paycom Software, Inc.
- 7501 West Memorial Road
- Oklahoma City
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/20 23:26|
|End of Day Share Price||2021/10/20 00:00|
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.