Paycom Software Inc Stock Research

Market Summary

USD266.85-10.50

Market Closed

-3.79%

PAYC Alerts

Big jump in Revenue (Y/Y)
Big jump in Earnings (Y/Y)

PAYC Stock Price

PAYC RSI Chart

PAYC Valuation

Market Cap

16.2B

Price/Earnings (Trailing)

57.59

Price/Sales (Trailing)

11.78

EV/EBITDA

35.77

Price/Free Cashflow

69.73

PAYC Price/Sales (Trailing)

PAYC Profitability

Operating Margin

84.53%

EBT Margin

28.33%

Return on Equity

23.79%

Return on Assets

7.21%

Free Cashflow Yield

1.43%

PAYC Fundamentals

PAYC Revenue

Revenue (TTM)

1.4B

Revenue Y/Y

30.04%

Revenue Q/Q

10.91%

PAYC Earnings

Earnings (TTM)

281.4M

Earnings Y/Y

64.21%

Earnings Q/Q

53.3%

Price Action

52 Week Range

255.82402.78

(Low)(High)

Last 7 days

-3.8%

Last 30 days

-13.9%

Last 90 days

-11.8%

Trailing 12 Months

-9.2%

PAYC Financial Health

Current Ratio

1.16

Debt/Equity

0.03

Debt/Cashflow

11.25

PAYC Investor Care

Buy Backs (1Y)

0.25%

Diluted EPS (TTM)

4.84

Peers (Alternatives to Paycom Software)

View All Peers In Detail

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
MSFT	2.1T	204.1B	-1.92%	-6.89%	30.5	10.08	10.38%	-5.25%
ORCL	228.6B	46.1B	-7.20%	4.35%	25.98	4.96	11.29%	-14.28%
CRM	186.7B	31.4B	6.91%	-6.75%	897.78	5.96	19.41%	-85.60%
ADBE	163.2B	17.6B	-11.04%	-20.88%	34.32	9.27	11.54%	-1.37%
ZM	20.9B	4.4B	-7.13%	-28.23%	201.15	4.75	7.15%	-92.46%
AZPN	12.1B	-	-3.12%	49.09%	44.35	17.39	-	-
MID-CAP
PLAN	9.6B	631.5M	-1.97%	16.85%	-45.68	15.19	33.30%	-26.60%
MANH	8.9B	767.1M	-2.98%	9.04%	69.2	11.63	15.59%	16.73%
GWRE	6.5B	869.9M	3.14%	-9.62%	-33	7.53	13.87%	-103.37%
APPN	3.1B	468.0M	2.00%	-15.48%	-20.53	6.62	26.74%	-70.26%
PING	2.4B	308.3M	1.17%	7.67%	-23.16	7.93	13.75%	-237.98%
SMALL-CAP
ZUO	1.2B	383.7M	4.07%	-32.35%	-9.91	3.24	14.43%	-50.89%
YEXT	1.2B	399.9M	30.95%	57.36%	-14.32	2.91	4.73%	8.15%
UPLD	152.1M	317.3M	-43.48%	-70.17%	-2.22	0.48	5.06%	-17.52%

Financials for Paycom Software

* denotes actual numbers (not divided by Millions)
Income Statement (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Revenue	6.6%	1,375	1,290	1,212	1,137	1,056
S&GA Expenses	4.8%	784	748	713	677	640
R&D Expenses	3.6%	148	143	134	125	118
EBITDA	12.0%	442	394	358	329	-
EBITDA Margin	5.1%	0.32*	0.31*	0.30*	0.29*	-
Earnings Before Taxes	12.7%	390	346	314	288	256
EBT Margin	5.7%	0.28*	0.27*	0.26*	0.25*	-
Interest Expenses	19.8%	3.00	2.00	1.00	1.00	0.00
Net Income	12.5%	281	250	228	223	196
Net Income Margin	5.5%	0.20*	0.19*	0.19*	0.20*	-
Free Cahsflow	16.0%	232	200	216	217	-

* denotes actual numbers (not divided by Millions)
Balance Sheet					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Assets	17.7%	3,903	3,315	4,892	5,445	3,215
Current Assets	24.0%	2,764	2,228	3,848	4,434	2,252
Cash Equivalents	26.3%	401	317	279	361	278
Inventory	9.2%	2.00	1.00	2.00	1.00	1.00
Net PPE	4.8%	402	384	375	363	349
Goodwill	0%	52.00	52.00	52.00	52.00	52.00
Liabilities	21.5%	2,720	2,238	3,898	4,436	2,321
Current Liabilities	25.3%	2,377	1,898	3,568	4,113	1,990
Long Term Debt	1.0%	29.00	29.00	29.00	-	-
LT Debt, Current	-100.0%	-	2.00	2.00	-	-
LT Debt, Non Current	0%	29.00	29.00	29.00	27.00	27.00
Shareholder's Equity	9.9%	1,183	1,076	994	1,009	894
Retained Earnings	7.2%	1,197	1,117	1,065	1,008	916
Additional Paid-In Capital	4.8%	577	550	518	490	466
Shares Outstanding	0%	58.00	58.00	58.00	58.00	58.00

* denotes actual numbers (not divided by Millions)
Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Cashflow From Operations	11.9%	365	326	342	347	319
Share Based Compensation	3.2%	95.00	92.00	96.00	96.00	98.00
Cashflow From Investing	89.7%	-23.29	-225	-230	-332	-257
Cashflow From Financing	119.3%	255	-1,317	1,265	1,579	166
Buy Backs	Infinity%	95.00	0.00	189	-	-

Risks for PAYC

What is the probability of a big loss on PAYC?

76.9%

Probability that Paycom Software stock will be more than 20% underwater in next one year

50.8%

Probability that Paycom Software stock will be more than 30% underwater in next one year.

34.6%

Probability that Paycom Software stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does PAYC drawdown profile look like?

Y-axis is the maximum loss one would have experienced if Paycom Software was unfortunately bought at previous high price.

Drawdowns

Returns for PAYC

Cumulative Returns on PAYC

35.9%

7-Year Cumulative Returns

20.4%

5-Year Cumulative Returns

7.0%

3-Year Cumulative Returns

What are the long-term rolling returns for PAYC?

FIve years rolling returns for Paycom Software.

Annualized Returns

Which funds bought or sold PAYC recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-03-15	B. Riley Wealth Advisors, Inc.	reduced	-10.08	-149,954	817,046	0.02%
2023-03-10	VICTORY CAPITAL MANAGEMENT INC	reduced	-59.87	-20,716,400	12,557,600	0.01%
2023-03-06	NORTH STAR ASSET MANAGEMENT INC	added	6.81	2,102	623,102	0.04%
2023-03-06	Rockefeller Capital Management L.P.	added	24.79	76,000	507,000	-%
2023-03-02	LORING WOLCOTT & COOLIDGE FIDUCIARY ADVISORS LLP/MA	new	-	216,447,000	216,447,000	2.68%
2023-02-28	Voya Investment Management LLC	added	7.83	8,712,780	332,862,000	0.47%
2023-02-27	Gallagher Benefit Services, Inc.	new	-	214,114	214,114	0.04%
2023-02-27	REBALANCE, LLC	new	-	51,822	51,822	-%
2023-02-24	NATIXIS	added	86.58	9,459,940	21,996,900	0.12%
2023-02-24	SRS Capital Advisors, Inc.	reduced	-60.00	-1,379	621	-%

Latest Funds Activity

Are funds buying PAYC calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own PAYC

No. of Funds

Paycom Software News

Schedule 13G FIlings of Paycom Software

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 09, 2023	vanguard group inc	9.63%	5,782,895	SC 13G/A
Feb 03, 2023	blackrock inc.	8.3%	4,811,106	SC 13G/A
Nov 18, 2022	richison chad r.	6.1%	3,670,999	SC 13D/A
Feb 15, 2022	richison chad r.	6.1%	3,670,999	SC 13D/A
Feb 14, 2022	price t rowe associates inc /md/	3.5%	2,103,618	SC 13G/A
Feb 03, 2022	blackrock inc.	8.9%	5,360,203	SC 13G/A
Feb 16, 2021	price t rowe associates inc /md/	6.3%	3,732,750	SC 13G/A
Feb 10, 2021	vanguard group inc	9.16%	5,358,909	SC 13G/A
Jan 29, 2021	blackrock inc.	8.6%	5,059,977	SC 13G/A
Nov 23, 2020	richison chad r.	6.1%	3,670,999	SC 13D/A

PAYC Fair Value

Paycom Software fair value in different scenarios

The table shows the Fair Value estimates for Paycom Software for various scenarios. Disclaimer: These are just estimations from a model. None of the models are good at predicting the future. Please dont buy or sell stocks based on these outputs.

Fair Value	Very Pessimistic	Pessimistic	Base Case	Optimistic	Very Optimistic
Very Low Inflation	113.64 -57.41%	158.71 -40.52%	238.60 -10.59%	359.14 34.58%	435.50 63.20%
Current Inflation	103.87 -61.08%	142.61 -46.56%	210.04 -21.29%	311.79 16.84%	375.76 40.81%
Very High Inflation	91.82 -65.59%	123.18 -53.84%	176.40 -33.90%	256.84 -3.75%	306.89 15.00%

Historical Paycom Software Fair Value Estimates

Very Pessimistic Case

Pessimistic Case

Fair Value

Optimistic Case

Very Optimistic Case

Closing Stock Price

Recent SEC filings of Paycom Software

View All Filings

Date Filed	Form Type	Document
Mar 17, 2023	4	Insider Trading
Mar 17, 2023	PRE 14A	PRE 14A
Mar 16, 2023	3	Insider Trading
Mar 09, 2023	8-K	Current Report
Feb 16, 2023	10-K	Annual Report
Feb 09, 2023	SC 13G/A	Major Ownership Report
Feb 08, 2023	4	Insider Trading
Feb 08, 2023	4	Insider Trading
Feb 08, 2023	4	Insider Trading
Feb 07, 2023	8-K	Current Report

Latest Insider Trading transactions for PAYC

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-02-06	Faurot Holly	acquired	-	-	817	chief sales officer
2023-02-06	Smith Bradley Scott	sold (taxes)	-85,719	329	-260	chief information officer
2023-02-06	Smith Bradley Scott	acquired	-	-	817	chief information officer
2023-02-06	Faurot Holly	sold (taxes)	-85,719	329	-260	chief sales officer
2023-02-06	Boelte Craig E.	sold (taxes)	-316,173	329	-959	chief financial officer
2023-02-06	Boelte Craig E.	acquired	-	-	3,119	chief financial officer
2023-02-04	Faurot Holly	acquired	-	-	278	chief sales officer
2022-12-28	Smith Bradley Scott	gifted	-	-	-1,500	chief information officer
2022-12-15	Faurot Holly	gifted	-	-	-300	chief sales officer
2022-12-09	Boelte Craig E.	gifted	-	-	-1,120	chief financial officer

About Paycom Software

Chad R. Richison

www.paycom.com

5380

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. It offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company's HCM solution provides a suite of applications in the areas of talent acquisition, including applicant tracking, candidate tracker, background checks, on-boarding, e-verify, and tax credit services; and time and labor management, such as time and attendance, scheduling/schedule exchange, time-off requests, labor allocation, labor management reports/push reporting, and geofencing/geotracking, and Microfence, a proprietary Bluetooth. Its HCM solution also offers payroll applications comprising better employee transaction interface, payroll and tax management, Paycom pay, expense management, mileage tracker/fixed and variable rates, garnishment management, and GL concierge applications; and talent management applications that include employee self-service, compensation budgeting, performance management, position management, and Paycom learning and content subscriptions, as well as my analytics, which offer employment predictor reporting. In addition, 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/benefits to carrier; COBRA administration; personnel action and performance discussion forms; surveys; and affordable care act applications, as well as Clue, which securely collect, track, and manage the vaccination and testing data of the workforce. Paycom Software, Inc. was founded in 1998 and is headquartered in Oklahoma City, Oklahoma.

PAYC Income Statement

2022-12-31

Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues
Total revenues	$ 1,375,218	$ 1,055,524	$ 841,434
Cost of revenues
Operating expenses	169,806	130,475	97,778
Depreciation and amortization	42,935	31,411	25,768
Total cost of revenues	212,741	161,886	123,546
Administrative expenses
Sales and marketing	346,561	275,994	235,716
Research and development	148,343	118,426	90,244
General and administrative	239,130	209,840	178,200
Depreciation and amortization	49,764	35,811	27,605
Total administrative expenses	783,798	640,071	531,765
Total operating expenses	996,539	801,957	655,311
Operating income	378,679	253,567	186,123
Interest expense	(2,536)		(19)
Other income (expense), net	13,435	2,395	(168)
Income before income taxes	389,578	255,962	185,936
Provision for income taxes	108,189	60,002	42,483
Net income	$ 281,389	$ 195,960	$ 143,453
Earnings per share, basic	$ 4.86	$ 3.39	$ 2.49
Earnings per share, diluted	$ 4.84	$ 3.37	$ 2.46
Weighted average shares outstanding:
Basic	57,928	57,885	57,620
Diluted	58,175	58,191	58,285
Comprehensive earnings (loss):
Net income	$ 281,389	$ 195,960	$ 143,453
Unrealized net gains (losses) on available-for-sale securities	(4,757)
Tax effect	1,054
Other comprehensive income (loss), net of tax	(3,703)
Comprehensive earnings (loss)	277,686	195,960	143,453
Recurring [Member]
Revenues
Total revenues	1,351,856	1,036,691	825,856
Implementation and Other [Member]
Revenues
Total revenues	$ 23,362	$ 18,833	$ 15,578

PAYC Balance Sheet

2022-12-31

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 400,730	$ 277,978
Accounts receivable	22,843	9,490
Prepaid expenses	34,056	23,729
Inventory	1,607	1,131
Income tax receivable	5,583	16,413
Deferred contract costs	96,378	76,724
Current assets before funds held for clients	561,197	405,465
Funds held for clients	2,202,975	1,846,573
Total current assets	2,764,172	2,252,038
Property and equipment, net	402,448	348,953
Intangible assets, net	54,017	58,028
Goodwill	51,889	51,889
Long-term deferred contract costs	567,974	461,852
Other assets	62,013	42,385
Total assets	3,902,513	3,215,145
Current liabilities:
Accounts payable	16,054	5,772
Accrued commissions and bonuses	28,439	22,357
Accrued payroll and vacation	45,023	34,259
Deferred revenue	19,825	16,277
Current portion of long-term debt	0	1,775
Accrued expenses and other current liabilities	59,990	63,397
Current liabilities before client funds obligation	169,331	143,837
Client funds obligation	2,207,706	1,846,573
Total current liabilities	2,377,037	1,990,410
Deferred income tax liabilities, net	141,033	145,504
Long-term deferred revenue	97,591	85,149
Net long-term debt, less current portion	29,000	27,380
Other long-term liabilities	75,245	72,988
Total long-term liabilities	342,869	331,021
Total liabilities	2,719,906	2,321,431
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value (100,000 shares authorized, 62,518 and 62,298 shares issued at December 31, 2022 and December 31, 2021, respectively; 57,867 and 58,012 shares outstanding at December 31, 2022 and December 31, 2021, respectively)	625	623
Additional paid-in capital	576,622	465,594
Retained earnings	1,196,968	915,579
Accumulated other comprehensive earnings (loss)	(3,703)
Treasury stock, at cost (4,651 and 4,286 shares at December 31, 2022 and December 31, 2021, respectively)	(587,905)	(488,082)
Total stockholders’ equity	1,182,607	893,714
Total liabilities and stockholders’ equity	$ 3,902,513	$ 3,215,145