Paycom Software, Inc.

Valuation Analysis

About the Company

Paycom Software, Inc. en bref

Paycom Software, Inc. (PAYC) is currently trading at 108,94 € with a market capitalization of 5,1 Md €. The trailing P/E ratio stands at 14.45x, with a forward P/E of 10.15x. The 52-week range spans from 91,54 € to 217,25 €; the current price is 49.9% below the yearly high. Year-over-year revenue growth stands at +7.8%. The net profit margin stands at 22.44%.

💰 Dividende

Paycom Software, Inc. pays an annual dividend of 1,31 € per share, representing a yield of 1.2%. The payout ratio stands at 17.36%.

📊 Avis des analystes

16 analystes évaluent Paycom Software, Inc. (PAYC) au consensus : None. L'objectif de cours moyen est de 132,16 €, soit un potentiel de +21.32% par rapport au cours actuel. La fourchette des objectifs de cours des analystes va de 104,72 € à 170,17 €.

Paycom Software, Inc. : la thèse d'investissement en détail

Paycom Software, Inc. (PAYC) operates in the Technology — specifically Software - Application — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

Le scénario haussier

With a gross margin near 87.6%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Return on equity of 37.15% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard. Free cash flow is positive and net margins stand at 22.44%, meaning reported earnings translate into real cash that can fund buybacks, dividends or strategic acquisitions.

Valorisation en contexte

With a PEG ratio of 0.93, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 9.88x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

À surveiller

• The forward P/E of 10.15x is meaningfully below the trailing 14.45x — analysts expect earnings to step up; the next earnings release is the test.
• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.
• The analyst consensus price target implies 21.32% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Thèse d'investissement : forces et faiblesses

Aperçu technique

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Profil de risque

The data points to relatively defensive market behavior, elevated short interest (9.85%).

Trading Data

💵 Dividend Info

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