Added to YB: 2024-07-05
Pitch date: 2024-07-02
PAYC [neutral]
Paycom Software, Inc.
+18.22%
current return
Author Info
No bio for this author
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
$11.1B
Pitch Price
$140.93
Price Target
N/A
Dividend
0.76%
EV/EBITDA
17.92
P/E
22.21
EV/Sales
5.72
Sector
Professional Services
Category
growth
Paycom Software (PAYC): Strong Fundamentals Amid Stock Decline, Potential for Rebound
PAYC: Cloud HR software down 74% from 2021 peak despite 33% revenue CAGR to $1.7B, 80%+ margins, 20-30% ROIC. Growth slowing (10-12% FY24 guide) caused multiple compression from 80x EBIT. Still strong fundamentals: 98% recurring revenue, expanding to larger enterprises & globally. 1% dividend yield.
Read full article (3 min)