Despite macroeconomic headwinds, strength in clientele, automation and international expansion are likely to aid PAYC's Q4 results.
Paycom Software Inc. operates in the highly competitive payroll and human capital management corner of the market but has a CAGR since inception of more than 27%. The company has strong financial metrics, with its gross profit margin well-above 80%. Paycom appears undervalued, rated as a Strong Buy with a long-term expected return of 14.50%, despite recent stock struggles.
Over the past year, Paycom has generated double-digit returns, in line with other cloud computing stocks. Paycom's transition to more automated suite of products appears to be seeing strong traction in the market. PAYC's operating cash flow generation keeps getting better, and with CAPEX poised to dip by 10% next year, the prospect of better shareholder rewards looks likely.
Paycom Software Inc. PAYC shares are rebounding slightly Friday. This comes following Wednesday's meltdown of more than 10%.
Paycom (PAYC) reported earnings 30 days ago. What's next for the stock?
PAYC is growing on the back of its innovative human capital management offerings, offset by competitive and macroeconomic factors.
This HR and payroll software giant is mounting a comeback.
Paycom Software, Inc.'s Q3 earnings report showed decent numbers, but the market's 22% positive reaction was overly optimistic, given modest growth and margin declines. The company reported $451.9M in revenue (+11.2% y/y) and beat analysts' estimates, but efficiency and profitability metrics slightly declined. Paycom's automation features like Beti and GONE are valuable, but broader awareness and aggressive sales efforts are needed to boost revenue growth.
The company posted strong earnings for the third quarter.
Paycom Software (PAYC) shares skyrocketed 21% on Thursday, posting the top daily performance in the S&P 500, after the payroll and human resources software firm reported better-than-expected sales and profits for the third quarter.
Paycom's Q3 results and forward guidance suddenly have investors feeling very bullish again.
Paycom's automated solutions are beloved by its customers, and the results may be starting to show.