Paycom Software, Inc.

Technology
Computer Software: Prepackaged Software
www.paycom.com

Earnings Score
Moat Score

Market Cap $12.74B
PE 25
Debt -
Cash $4.04B
EV -
FCF $341.00M

Earnings

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Sales & Net Margins

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Earnings	$502.00M
EBIT	$649.00M
ROE	32%
ROA	11%
FCF	$341.00M
Equity	$1.58B
Growth Stability	100%
PE	25.37
PEG	0.83
PB	8.08
P/FCF	37.35
P/S	6.76
Price/Cash	0.32
Net Margins	27%
Gross Margins	82%
Op. Margins	34%
Earnings CAGR	32%
Sales Growth YoY	14%
Sales Growth QoQ	9%
Sales CAGR	25%
FCF CAGR	26%
Equity CAGR	39%
Earnings Stability	0.93
Earnings Growth YoY	39%
Earnings Growth QoQ	55%

Earnings CAGR 5Y	31%
Sales CAGR 5Y	23%
FCF CAGR 5Y	28%
Equity CAGR 5Y	25%
Earnings CAGR 3Y	20%
Sales CAGR 3Y	20%
FCF CAGR 3Y	20%
Equity CAGR 3Y	17%
Market Cap	$12.74B
Revenue	$1.88B
Dividend Yield	1%
Payout Ratio	17%
Assets	$5.86B
Cash	$4.04B
Shares Outstanding	55.9M
Earnings Score	95%
Moat Score	95%
Working Capital	398M
Current Ratio	1.1
Gross Profit	$1.55B
Shares Growth 3y	-2%
Equity Growth QoQ	8%
Equity Growth YoY	21%

Assets & ROA

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Stockholders Equity & ROE

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Paycom is a fast-growing provider of payroll and human capital management, or HCM, software primarily targeting clients with 50-10,000 employees in the United States. Paycom was established in 1998 and services about 16,000 clients, based on parent company grouping. Alongside its core payroll software, Paycom offers various HCM add on modules including time and attendance, talent management, and benefits administration.

SEC Filings

Direct access to Paycom Software, Inc. (PAYC) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Paycom Software, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Paycom Software, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 32%

Stability 93%

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Paycom Software, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Paycom Software, Inc..

Years

Calculation mode

= $20B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$341M	$428M	$537M	$674M	$847M	$1.1B	$1.3B	$1.7B	$2.1B	$2.6B	$3.3B	$33B
DCF		$389M	$444M	$507M	$578M	$660M	$753M	$859M	$981M	$1.1B	$1.3B	$13B
Value	$20B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	9%	13%	15%	24%	24%	17%	19%	20%	20%	27%	27%
ROA	-	5%	6%	11%	9%	7%	8%	10%	11%	11%	11%
ROE	-	37%	49%	41%	34%	22%	22%	24%	26%	32%	32%

Good Net Margins (26.66%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	0.56	0.51	0.29	0.26	0.25	0.16	0.12	-	-	-
Debt over Equity	0.27	0.27	0.27	0.11	0.07	0.05	0.03	0.02	-	-	-
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	47%	32%	31%	30%	14%	25%	30%	23%	11%	23%
Earnings YoY growth	-	110%	53%	105%	32%	-21%	37%	44%	21%	47%	31%
Equity YoY growth	-	19%	16%	147%	57%	24%	36%	32%	10%	21%	25%
FCF YoY growth	-	109%	29%	75%	5%	1%	49%	17%	26%	17%	28%