Morningstar

Paycom Software Inc PAYC

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Stock XNYS Rating as of
$167.80 +0.34 (0.20%)
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As of Delayed Price Closed

Company Report

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Paycom Continues to Attract New Customers Through Appeal of Automation-Led Product Suite

Emma Williams

Paycom's unified platform appeals to midsize and enterprise clients that prefer an all-in-one payroll and human capital management solution. The company's platform is supported by a single database, which provides a single source of truth and allows efficient software development and maintenance. Unlike competitors, Paycom discourages data integrations to third-party providers but instead incentivizes clients to contain their HCM solutions within its unified platform by offering add-on modules, including time and attendance and benefits administration. In practice, new clients may consolidate their payroll and HCM solutions from multiple providers to an all-in-one solution by Paycom. The company is focused on driving greater automation and employee self-service, supported by complementary analytics tools for clients and the rollout of its Beti self-service payroll module.

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Price vs Fair Value

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PAYC is trading at a 673% premium.
Price
$167.80
Fair Value
$141.00
Uncertainty
Very High
1-Star Price
$116.00
5-Star Price
$747.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

We expect increasing employee usage and employee self-service will entrench Paycom's platform further into a client's business, increasing client stickiness.

Bears

We expect fierce competitive pressures to limit pricing growth and force Paycom to maintain high investment in software development and innovation.

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News

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Trading Information

Previous Close Price
$167.46
Day Range
$167.17–170.35
52-Week Range
$139.50–279.96
Bid/Ask
$166.00 / $169.95
Market Cap
$9.64 Bil
Volume/Avg
467,889 / 801,010

Key Statistics

Price/Earnings (Normalized)
21.21
Price/Sales
5.40
Dividend Yield (Trailing)
0.89%
Dividend Yield (Forward)
0.89%
Total Yield
4.71%

Company Profile

Paycom is a fast-growing provider of payroll and human capital management software primarily targeting clients with 50-10,000 employees in the United States. Paycom was established in 1998 and services about 19,500 clients as of 2023, based on parent company grouping. Alongside its core payroll software, Paycom offers various HCM add-on modules, including time and attendance, talent management, and benefits administration.
Sector
Technology
Industry
Software - Application
Stock Style Box
Small Core
Total Number of Employees
7,308
Website
https://www.paycom.com

Competitors

Valuation

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Metric
PAYC
PCTY
ADP
Price/Earnings (Normalized)
 21.2124.5329.82
Price/Book Value
 6.608.6724.49
Price/Sales
 5.406.565.86
Price/Cash Flow
 16.1720.2920.18
Price/Earnings
PAYC
PCTY
ADP

Financial Strength

Metric
PAYC
PCTY
ADP
Quick Ratio
 0.150.140.14
Current Ratio
 1.131.131.01
Interest Coverage
 294.93—13.81
Quick Ratio
PAYC
PCTY
ADP

Profitability

Metric
PAYC
PCTY
ADP
Return on Assets (Normalized)
 10.71%8.89%6.86%
Return on Equity (Normalized)
 32.24%38.52%92.41%
Return on Invested Capital (Normalized)
 32.09%36.21%51.10%
Return on Assets
PAYC
PCTY
ADP

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