Added to YB: 2024-10-04
Pitch date: 2024-10-03
PAYC [bullish]
Paycom Software, Inc.
+23.26%
current return
Author Info
Company Info
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.
Market Cap
$13.0B
Pitch Price
$167.93
Price Target
525.00 (+123%)
Dividend
0.65%
Sector
Professional Services
Category
turnaround
Paycom: Bargain or value trap?
PAYC: HCM leader w/ 5% market share, 32% 10yr rev CAGR. Beti product cannibalizing revenue short-term, but attracting new clients. CEO focused on fixing product. Trades at 20x P/E, down from 100x. Risks: competition, internal cannibalization, data breach. Base case: 10-20% growth, potential for multiple expansion if turnaround succeeds.
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