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Paycom Software Inc.
PAYC
209.22 (-1.30%) 2.72
11.69(B)
Industrials
Professional Services
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 time-off requests labor allocation labor management reports/push reporting geofencing/geotracking and Microfence a proprietary Bluetooth. Its HCM solution also offers payroll applications comprising better employee transaction interface payroll and tax management payroll card Everyday Paycom pay Client Action Center expense management mileage tracker/fixed and variable rates garnishment administration and GL concierge applications; and talent management applications that include employee self-service compensation budgeting performance management position management and Paycom learning as well as my analytics. 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; benefit enrollment service; COBRA administration; personnel action and performance discussion forms; surveys; 401(k) reporting; report center; and affordable care act applications as well as Clue which securely collects tracks and manages the vaccination and testing data of the workforce. Paycom Software Inc. was founded in 1998 and is based in Oklahoma City Oklahoma.
Holdings:
Shares:
Cost basis:

Paycom Software Inc. (PAYC) price target and intrinsic value estimate

PAYC's fair price estimate is $168.2

This valuation is based on a fair P/E of 17.9 and EPS estimates of $9.39

The median analyst price target for PAYC is $220.0.

Analyst price targets range from $185.0 to $278.0

Is PAYC overvalued or undervalued?

PAYC is currently trading at $209.22

PAYC is overvalued by 24% using the pevaluation method.

PAYC is undervalued by 5% compared to median analyst price targets.

Do you agree with this valuation?

Valuation

PEvaluation

Current price
$209.22
Fairly valued
Low
$126
Median
$168
High
$210
Fair P/E
Margin of safety

Analyst valuation

Current price
$209.22
Fairly valued
Low
$185
Median
$220
High
$278
Strong Buy1
Buy2
Hold17
Sell0
Strong Sell0

Discounted cash-flow

N/A
Negative FCF or FCF estimates
TTM FCFFCF est.Growth FCFTerminal FCF
Discount
rate
10%
Terminal
rate
5%
Growth p.
length
5y
Growth p.
rate
10%
Shares outstan...ROICRevenue growthDebt/FCFAssets/Liabili...
Economic moat: Medium
None/narrowMediumWideVery wide

Overview

Market data

Market cap:$11.69(B)
Enterprise value:$11.45(B)
Total Equity:$1.46(B)
Shares outstanding:55.89(M)
Div. yield:0.72%
P/S:6.49
P/E:25.15
P/FCF:36.77
P/B:7.77
EPS:$8.3
FCF per share:$5.7
Dividend per share:$1.5

Income (TTM)

RevenueGrossNet
Revenue$1.82(B)
Gross profit$1.56(B)
EBITDA$667.80(M)
Net income$470.19(M)
Gross margin85.6%
Net margin25.8%

Balance sheet

Cash & ST inv.Other ST assetsLong term assetsCurrent liabilitiesLong term debtOther LT liabilitiesEquity
Total assets$3.49(B)
Total liabilities$2.03(B)
Cash & Short-term inv.$325.76(M)
Long-term debt$0
Debt issued$0
Debt repaid$-29.00(M)

Cash flow (TTM)

CFOCFICFF
FCF$309.55(M)
CapEx$-198.43(M)
Dividends paid$-85.16(M)
Stock issued$0
Stock repurchased$-350.15(M)
Stock-based comp.$-8.59(M)

Future Growth

Revenue

CAGR: 9.0%
FY+1FY+2FY+3FY+4FY+5
FY+1$1.87(B)
FY+2$2.05(B)
FY+3$2.25(B)
FY+4$2.45(B)
FY+5$2.64(B)

Net Income

CAGR: 16.0%
FY+1FY+2FY+3FY+4FY+5
FY+1$442.58(M)
FY+2$485.95(M)
FY+3$540.64(M)
FY+4$688.00(M)
FY+5$802.00(M)

EPS

CAGR: 16.5%
FY+1FY+2FY+3FY+4FY+5
FY+1$7.85
FY+2$8.61
FY+3$9.59
FY+4$12.36
FY+5$14.44

FCF per share

CAGR: 8.5%
FY+1FY+2FY+3
FY+1$8.96
FY+2$9.94
FY+3$10.54

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Historical Financials

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Income
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