Paycom Software Inc
NYSE:PAYC

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Paycom Software Inc
NYSE:PAYC
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Price: 229.945 USD 1.29% Market Closed
Market Cap: 13.2B USD
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Intrinsic Value

The intrinsic value of one PAYC stock under the Base Case scenario is 245.398 USD. Compared to the current market price of 229.945 USD, Paycom Software Inc is Undervalued by 6%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

PAYC Intrinsic Value
245.398 USD
Undervaluation 6%
Intrinsic Value
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Paycom Software Inc

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

Economic Moat
Paycom Software Inc

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Business Breakdown

Paycom Software Inc., founded in 1998 by Chad Richison, has emerged as a trailblazer in the human capital management (HCM) sector, delivering cloud-based payroll and HR solutions to businesses in the United States. With a commitment to innovation and efficiency, Paycom's platform integrates various HR functions—such as payroll processing, talent management, and compliance—into a single, user-friendly system. This holistic approach not only simplifies HR tasks for organizations but also enhances employee engagement through self-service features. As more businesses seek streamlined and cost-effective solutions, Paycom's technology-driven offerings position the company favorably in the competit...

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Paycom Software Inc

Current Assets 2B
Cash & Short-Term Investments 325.8m
Receivables 30.9m
Other Current Assets 1.6B
Non-Current Assets 1.5B
PP&E 631.6m
Intangibles 99.1m
Other Non-Current Assets 784m
Current Liabilities 1.7B
Accounts Payable 35m
Accrued Liabilities 156.1m
Other Current Liabilities 1.5B
Non-Current Liabilities 368.2m
Other Non-Current Liabilities 368.2m
Efficiency

Earnings Waterfall
Paycom Software Inc

Revenue
1.8B USD
Cost of Revenue
-325.6m USD
Gross Profit
1.5B USD
Operating Expenses
-905.8m USD
Operating Income
592.6m USD
Other Expenses
-122.4m USD
Net Income
470.2m USD

Free Cash Flow Analysis
Paycom Software Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

Paycom's third quarter 2024 results exceeded expectations, with revenue reaching $452 million—an 11% increase year-over-year. Recurring revenue constituted 98% of this, growing nearly 12%. Adjusted EBITDA was $171 million, achieving a 38% margin. Management raised its 2024 revenue guidance to between $1.866 billion and $1.873 billion, projecting a 10% growth at the midpoint. For Q4, revenue is expected between $477 million and $484 million, while adjusted EBITDA is estimated at $184.5 million to $191.5 million. Paycom continues to invest in automation and AI, aiming to capture a larger market share, currently at less than 5%.

What is Earnings Call?
Fundamental Scores

PAYC Profitability Score
Profitability Due Diligence

Paycom Software Inc's profitability score is 69/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Exceptional 3-Year Average ROE
Positive Free Cash Flow
Exceptional 3-Years Revenue Growth
69/100
Profitability
Score

Paycom Software Inc's profitability score is 69/100. The higher the profitability score, the more profitable the company is.

PAYC Solvency Score
Solvency Due Diligence

Paycom Software Inc's solvency score is 67/100. The higher the solvency score, the more solvent the company is.

High Altman Z-Score
Low D/E
Long-Term Solvency
Short-Term Solvency
67/100
Solvency
Score

Paycom Software Inc's solvency score is 67/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

PAYC Price Targets Summary
Paycom Software Inc

Wall Street analysts forecast PAYC stock price to drop over the next 12 months.

According to Wall Street analysts, the average 1-year price target for PAYC is 205.784 USD with a low forecast of 176.75 USD and a high forecast of 273 USD.

Lowest
Price Target
176.75 USD
23% Downside
Average
Price Target
205.784 USD
11% Downside
Highest
Price Target
273 USD
19% Upside
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Dividends

Dividend Yield
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Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
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0
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Shareholder Yield

Current shareholder yield for PAYC is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
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Buyback Yield
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Debt Paydown Yield
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Ownership

PAYC Insider Trading
Buy and sell transactions by insiders

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Period Sold Bought Net
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PAYC News

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Profile

Paycom Software Inc Logo
Paycom Software Inc

Country

United States of America

Industry

Technology

Market Cap

12.9B USD

Dividend Yield

0.65%

Description

Paycom Software, Inc. engages in the provision of cloud-based human capital management (HCM) software solutions delivered as Software-as-a-Service. The company is headquartered in Oklahoma City, Oklahoma and currently employs 5,385 full-time employees. The company went IPO on 2014-04-15. The firm provides functionality and data analytics that businesses need to manage the complete employment life cycle from recruitment to retirement. The firm's applications streamline client processes and provide clients and their employees with the ability to directly access and manage administrative processes, including applications that identify candidates, on-board employees, manage time and labor, administer payroll deductions and benefits, manage performance, terminate employees and administer post-termination health benefits, such as COBRA. Its solution allows clients to analyze employee information to make business decisions. Its HCM solution offers a range of applications, including talent acquisition, time and labor management, payroll, talent management and human resources (HR) management applications.

Contact

OKLAHOMA
Oklahoma City
7501 W Memorial Rd
+14057226900.0
www.paycom.com

IPO

2014-04-15

Employees

5 385

Officers

Founder, President, CEO & Chairman of the Board
Mr. Chad R. Richison
CFO & Treasurer
Mr. Craig E. Boelte
Chief Information Officer
Mr. Bradley Scott Smith
Chief Administrative Officer
Mr. Jason Dean Clark
Chief Operating Officer
Mr. Randy Peck
Head of Investor Relations
James Samford
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Chief Legal Officer & Secretary
Mr. Matthew Paque
Chief Marketing Officer
Mr. Steve Sturges
Executive Vice President of Sales
Ms. Amy Walker
Chief Human Resources Officer
Ms. Jennifer M. Kraszewski
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See Also

Discover More
What is the Intrinsic Value of one PAYC stock?

The intrinsic value of one PAYC stock under the Base Case scenario is 245.398 USD.

Is PAYC stock undervalued or overvalued?

Compared to the current market price of 229.945 USD, Paycom Software Inc is Undervalued by 6%.

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