Professional
Added to YB: 2023-12-05
Pitch date: 2023-12-04
PAYC [bullish]
Paycom Software, Inc.
+39.66%
current return
Author Info
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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
$10.2B
Pitch Price
$181.07
Price Target
295.00 (+17%)
Dividend
0.65%
EV/EBITDA
14.37
P/E
24.56
EV/Sales
5.12
Sector
Professional Services
Category
growth
Paycom Software: Self-Service Payroll Cannibalizes Revenue and Upsells Stall but Shares Look Cheap
PAYC: FVE cut to $295 on weak FY24 guide & Beti self-service payroll challenges. High switching costs, market share gains from less agile rivals still a boon. Singular database deters data integration, pushing all-in-one adoption. Upside: employee self-service trend, reg complexity under Dems. 93% retention, 5% payroll/HCM share. Cheap post-earnings but above FVE. Strong FCF for buybacks/divs. Risks: Competition may cap pricing power, limits in upmarket segment preferring integrated solutions.
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