Last Updated: 10 Nov 2024
Executive Summary
Paycom Software (PAYC) is a leading provider of online payroll and human resource technology solutions, with a market capitalization of $13.19 billion. The company has been experiencing strong growth in recent years, driven by the increasing demand for cloud-based HR solutions. PAYC's financial performance is solid, with a trailing price-to-earnings ratio of 27.56 and a forward price-to-earnings ratio of 25.25. The stock price is currently trading at $228.75, below its 52-week high of $233.69.
Company Overview
Paycom Software was founded in 1991 and is headquartered in Oklahoma City, Oklahoma. The company provides a comprehensive suite of HR solutions, including payroll processing, human capital management, and talent acquisition. Paycom's solutions are designed to help businesses of all sizes streamline their HR operations and improve employee productivity.
Fundamental Analysis
Paycom Software's financial performance has been strong in recent years. The company's revenue has grown from $1.1 billion in 2018 to $1.82 billion in 2023. Net income has also grown significantly, from $233.4 million in 2018 to $470.7 million in 2023. Paycom's gross profit margin is 66.1%, and its operating margin is 23.2%. The company's return on assets is 10.1%, and its return on equity is 32.6%.
Technical Analysis
Paycom Software's stock price has been trending higher in recent months. The stock broke out of a consolidation pattern in October 2023 and has since rallied to its current level of $228.75. The stock is currently trading above its 50-day and 200-day moving averages, which is a bullish sign.
Short Term Outlook
The short-term outlook for Paycom Software is positive. The stock is trading above its key moving averages and is showing relative strength compared to the broader market. The company's financial performance is solid, and the demand for cloud-based HR solutions is expected to continue to grow.
Long Term Outlook
The long-term outlook for Paycom Software is also positive. The company is a leader in the HR software market, and it is well-positioned to benefit from the increasing adoption of cloud-based solutions. Paycom's financial performance is strong, and the company has a solid track record of growth.
Analyst Recommendations
Analysts are generally positive on Paycom Software. The average analyst rating is "buy," and the average analyst target price is $198.17.
Conclusion
Paycom Software is a leading provider of online payroll and human resource technology solutions. The company has been experiencing strong growth in recent years, and its financial performance is solid. The stock price is currently trading below its 52-week high, and the technical analysis suggests that the stock is poised for further gains. The short-term and long-term outlook for Paycom Software is positive.
