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PAYC

Paycom SoftwareNYSE:PAYC Stock Report

Market Cap

US$29.7b

7D

-0.7%

1Y

36.3%

Updated

20 Oct, 2021

Data

Company Financials +
PAYC fundamental analysis
Snowflake Score
Valuation0/6
Future Growth6/6
Past Performance3/6
Financial Health6/6
Dividends0/6

PAYC 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$512.63
52 Week HighUS$302.44
52 Week LowUS$529.92
Beta1.4
1 Month Change5.92%
3 Month Change32.96%
1 Year Change36.31%
3 Year Change315.15%
5 Year Change890.97%
Change since IPO3,239.61%

Recent News & Updates

Oct 12
Calculating The Fair Value Of Paycom Software, Inc. (NYSE:PAYC)

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...

Oct 01

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.

Sep 05
There Are Reasons To Feel Uneasy About Paycom Software's (NYSE:PAYC) Returns On Capital

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...

Aug 06
At US$457, Is It Time To Put Paycom Software, Inc. (NYSE:PAYC) On Your Watch List?

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...

Shareholder Returns

PAYCUS SoftwareUS Market
7D-0.7%3.9%3.8%
1Y36.3%36.1%31.5%

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.

Price Volatility

Is PAYC's price volatile compared to industry and market?
PAYC volatility
PAYC Beta1.4
Industry Beta0.97
Market Beta1

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

FoundedEmployeesCEOWebsite
19984,218Chad 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.

Paycom Software Fundamentals Summary

How do Paycom Software's earnings and revenue compare to its market cap?
PAYC fundamental statistics
Market CapUS$29.69b
Earnings (TTM)US$168.74m
Revenue (TTM)US$931.82m

175.9x

P/E Ratio

31.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PAYC income statement (TTM)
RevenueUS$931.82m
Cost of RevenueUS$108.25m
Gross ProfitUS$823.57m
ExpensesUS$654.83m
EarningsUS$168.74m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 02, 2021

Earnings per share (EPS)2.91
Gross Margin88.38%
Net Profit Margin18.11%
Debt/Equity Ratio3.8%

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?

175.95x

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).


Future Growth

How is Paycom Software forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

29.0%

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%)


Past Performance

How has Paycom Software performed over the past 5 years?

20.9%

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.


Financial Health

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.


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?

4.6yrs

Average management tenure


CEO

Chad Richison (51 yo)

23.75yrs

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 ($USD211.13M) is above average for companies of similar size in the US market ($USD11.17M).

Compensation vs Earnings: Chad's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: PAYC's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: PAYC's board of directors are considered experienced (5 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
  • Market Cap: US$29.690b
  • Shares outstanding: 57.92m
  • 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 Analysis2021/10/20 23:26
End of Day Share Price2021/10/20 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.