PAYCPaycom Software, Inc. (PAYC) shows strong fundamentals with robust profitability and a healthy balance sheet, supported by positive thematic trends in HR technology. Technical indicators are mixed, suggesting a potential for short-term consolidation after recent gains.
Paycom is well-positioned to benefit from the increasing demand for cloud-based HR solutions, employee self-service platforms, and automation in workforce management.
Paycom demonstrates robust financial health with impressive profitability, strong revenue growth, and a solid balance sheet. The company's ability to consistently beat earnings estimates is a positive indicator.
Paycom's stock is in a moderate uptrend, trading above key moving averages. However, several oscillators suggest it might be approaching overbought conditions, hinting at potential short-term consolidation or a pullback.
| Factor | Score |
|---|---|
| Digital Transformation in HR | 95 |
| Employee Self-Service (ESS) | 92 |
| Automation & Efficiency | 90 |
| Regulatory Compliance (e.g., ACA) | 85 |
| Competition & Market Saturation | 75 |
| Factor | Score |
|---|---|
| Valuation | 65 |
| Profitability | 90 |
| Growth | 80 |
| Balance Sheet Health | 95 |
| Cash Flow | 88 |
| Earnings Performance | 92 |
| Factor | Score |
|---|---|
| Trend Analysis | 80 |
| Momentum | 60 |
| Short-term Momentum | 50 |
| Volume | 70 |
| Support/Resistance | 55 |
Consistently Beat EPS Estimates
The company has exceeded Earnings Per Share (EPS) estimates in the last 12 reported quarters, demonstrating consistent operational execution and effective financial management.
Reasonable Price-to-Sales Ratio
The Price-to-Sales (P/S) ratio of 9.0 for TTM is within a reasonable range given the company's growth and profitability. While not exceptionally low, it suggests the market values its revenue generation capacity.
Elevated Price-to-Earnings Ratio
The trailing Price-to-Earnings (P/E) ratio of 33.896 is high, suggesting that investors are paying a premium for earnings. This could make the stock vulnerable to significant price corrections if growth expectations are not met.
Slowing Revenue Growth (Quarterly vs. Annual)
While annual revenue growth (2023 to 2024) shows an increase, the quarterly revenue for Q4 2024 ($493.87M) is lower than Q1 2025 ($530.5M), indicating potential variability or a recent slowdown in booking trends.
May 2025
27
Ex-Dividend Date
June 2025
9
Next Dividend Date
August 2025
7
Next Earnings Date
H: $1.86
A: $1.78
L: $1.68
H: 474.53M
A: 471.95M
L: 466.34M
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 company offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. Its HCM solution provides a suite of applications in the areas of talent acquisition, including applicant tracking, background checks, on-boarding, e-verify, and tax credit services; and time and labor management, such as time and attendance, scheduling, time-off requests, and labor allocation solutions. The company's HCM solution also offers payroll applications comprising better employee transaction interface, payroll and payroll tax management, payroll card, Everyday, Paycom pay, Client Action Center, expense management, garnishment administration, and GL concierge applications; and talent management applications that include employee self-service, compensation budgeting, performance management, position management, and Paycom learning. Its HCM solution provides manager on-the-go that gives supervisors and managers the ability to perform a variety of tasks, such as approving time-off requests and expense reimbursements; direct data exchange; ask here, a tool for direct line of communication to ask work-related questions; document and checklist; government and compliance; benefits administration; COBRA administration; personnel action and performance discussion forms; Paycom surveys; retirement reporting; report center; and affordable care act applications, as well as Clue, which securely collects, tracks, and manages the vaccination and testing data of the workforce. Paycom Software, Inc. was founded in 1998 and is based in Oklahoma City, Oklahoma.
240.82 USD
The 39 analysts offering 1 year price forecasts for PAYC have a max estimate of 310.00 and a min estimate of 203.00.