Here Are the Facts You Need to Understand Paycom Software (PAYC)

After moving 0.5% during today's evening session, Paycom Software is now trading at a price of $172.0 per share. On average, analysts give it a target price of $379.5.

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.

Potential Paycom Software Investors Should Analyze the Following:

  • Paycom Software has moved -48.0% over the last year.

  • The company has a price to earnings growth (PEG) ratio of 1.5. A number between 0 and 1 could mean that the market is undervaluing Paycom Software's estimated growth potential

  • Its Price to Book (P/B) ratio is 6.68

  • Paycom Software currently returns an annual dividend yield of 0.4%.

Understanding Paycom Software's Operating Margins

Date Reported Total Revenue ($ k) Operating Expenses ($ k) Operating Margins (%) YoY Growth (%)
2023 1,557,551 1,129,754 28 0.0
2022 1,375,218 996,539 28 16.67
2021 1,055,524 801,957 24 9.09
2020 841,434 655,311 22 -29.03
2019 737,671 511,447 31 0.0
2018 566,336 392,621 31

Over the last 6 years, Paycom Software's operating margins have averaged 27.3%, which is better than the 21.81% Software industry average. We also note that the company's operating margins have a high coefficient of variability at 63.4%. The firm's margins exhibit a relatively stable growth trend of -1.2%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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