Paycom Software moved -1.8% this afternoon session, trading between a high of $178.92 and a low of $172.75 per share. Yesterday the stock finished at $177.11 per share, compared to an average analyst target price of $203.73.
Paycom Software, Inc. provides cloud-based human capital management (HCM) solution delivered as software-as-a-service for small to mid-sized companies in the United States. The large-cap computer software: prepackaged software company is based in the United States, and over the last twelve months it has returned a dividend yield of 0.4%. Paycom Software has trailing twelve months earnings per share (EPS) of 5.84, which at today's prices amounts to a price to earnings (P/E) ratio of 29.8.
Based on its expected future earnings growth, the company has a price to earnings growth (PEG) ratio of 1.56. Usually a PEG ratio between 0 and 1 indicates a potentially undervalued company.
Overview of the Company's Gross Margins:
| Date Reported | Revenue ($ k) | Cost of Revenue ($ k) | Gross Margins (%) | YoY Growth (%) |
|---|---|---|---|---|
| 2023 | 1,557,551 | 1,129,754 | 27 | -3.57 |
| 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 |
Paycom Software's 27.2% average gross margins are thinner than the 70.92% average of the Software industry, implying that the firm might be lacking in competitivity.
