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Upturn AI SWOT - About
PAYC 
Paycom Soft (PAYC)
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Upturn Advisory Summary
04/01/2025: PAYC (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -22.2% | Avg. Invested days 33 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 04/01/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 12.25B USD | Price to earnings Ratio 24.52 | 1Y Target Price 224.89 |
Price to earnings Ratio 24.52 | 1Y Target Price 224.89 | ||
Volume (30-day avg) 750028 | Beta 1.14 | 52 Weeks Range 138.71 - 242.31 | Updated Date 03/31/2025 |
52 Weeks Range 138.71 - 242.31 | Updated Date 03/31/2025 | ||
Dividends yield (FY) 0.69% | Basic EPS (TTM) 8.91 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 26.66% | Operating Margin (TTM) 6.27% |
Management Effectiveness
Return on Assets (TTM) 6.42% | Return on Equity (TTM) 34.87% |
Valuation
Trailing PE 24.52 | Forward PE 25.19 | Enterprise Value 11928404437 | Price to Sales(TTM) 6.5 |
Enterprise Value 11928404437 | Price to Sales(TTM) 6.5 | ||
Enterprise Value to Revenue 6.33 | Enterprise Value to EBITDA 14.94 | Shares Outstanding 55986300 | Shares Floating 49259551 |
Shares Outstanding 55986300 | Shares Floating 49259551 | ||
Percent Insiders 12.14 | Percent Institutions 87.44 |
Analyst Ratings
Rating 3.25 | Target Price 221.42 | Buy 1 | Strong Buy 2 |
Buy 1 | Strong Buy 2 | ||
Hold 17 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Paycom Soft
Company Overview
History and Background
Paycom Software, Inc. was founded in 1998 by Chad Richison. It began as a payroll processing company and has evolved into a comprehensive human capital management (HCM) technology provider. Paycom went public in 2014.
Core Business Areas
- Payroll: Payroll processing and tax management services, offering a cloud-based platform for managing employee pay.
- Human Resources: HR management solutions including employee data management, benefits administration, and HR compliance.
- Talent Management: Talent acquisition, onboarding, performance management, and learning management systems (LMS).
- Time and Attendance: Time tracking, scheduling, and absence management solutions.
Leadership and Structure
Chad Richison is the Founder, CEO and Chairman. The organizational structure is hierarchical, with various departments led by VPs and Directors reporting to executive leadership.
Top Products and Market Share
Key Offerings
- Beti (Employee-Driven Payroll): Beti allows employees to manage their own payroll process, reducing errors and administrative burdens. Market share is difficult to isolate specifically for Beti, but it is a key differentiator for Paycom. Competitors include ADP, Paychex, and Workday in the broader payroll market.
- Expense Management: Streamlines employee expense reporting and reimbursement. This feature is part of Paycom's broader HCM suite. Competitors include Expensify, Concur, and other expense management solutions offered by larger HCM providers.
- HR Management: Includes features like employee self-service, benefits administration, and compliance tracking. Competitors include Workday, Oracle HCM, and SAP SuccessFactors.
Market Dynamics
Industry Overview
The HCM market is growing, driven by the increasing need for businesses to streamline HR processes, manage talent effectively, and comply with regulations. Cloud-based solutions are becoming increasingly popular.
Positioning
Paycom is positioned as a leading provider of cloud-based HCM solutions, targeting mid-sized to large companies. Its competitive advantages include its comprehensive suite of products and its focus on employee self-service.
Total Addressable Market (TAM)
The TAM for HCM software is estimated to be hundreds of billions of dollars. Paycom is well-positioned to capture a significant share of this market.
Upturn SWOT Analysis
Strengths
- Comprehensive HCM suite
- Innovative technology (e.g., Beti)
- Strong customer satisfaction
- Experienced leadership
- Cloud-based platform
Weaknesses
- High sales and marketing expenses
- Premium pricing compared to some competitors
- Reliance on specific industries
- Dependence on key personnel
Opportunities
- Expansion into new markets (international)
- Further development of AI-powered features
- Strategic acquisitions
- Increased demand for cloud-based HCM solutions
Threats
- Intense competition
- Economic downturn
- Changes in regulations
- Data security breaches
Competitors and Market Share
Key Competitors
- ADP (ADP)
- Paychex (PAYX)
- Workday (WDAY)
Competitive Landscape
Paycom competes with larger, more established players in the HCM market. Its advantages include its innovative technology and its focus on employee self-service.
Major Acquisitions
Vera Suite
- Year: 2017
- Acquisition Price (USD millions): 35
- Strategic Rationale: Expanded Paycom's compliance offerings.
Growth Trajectory and Initiatives
Historical Growth: Paycom has experienced significant revenue growth over the past decade, driven by its innovative products and strong sales execution.
Future Projections: Analysts project continued revenue growth for Paycom, driven by increased adoption of its HCM solutions.
Recent Initiatives: Recent initiatives include the expansion of its Beti product and the development of new AI-powered features.
Summary
Paycom is a strong player in the HCM market with a focus on technology and customer satisfaction. The company's revenue growth is impressive, driven by innovative solutions like Beti. However, it faces intense competition and must carefully manage its expenses to maintain profitability. Future growth relies on continued innovation and market expansion.
Similar Companies
ADP
Automatic Data Processing Inc
ADP
Automatic Data Processing Inc
PAYX
Paychex Inc
PAYX
Paychex Inc
WDAY
Workday Inc
WDAY
Workday Inc
Sources and Disclaimers
Data Sources:
- Company SEC Filings (10-K, 10-Q)
- Analyst Reports
- Industry Publications
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market conditions and company performance are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Paycom Soft
Exchange NYSE | Headquaters Oklahoma City, OK, United States | ||
IPO Launch date 2014-04-15 | Founder, President, CEO & Chairman of the Board Mr. Chad R. Richison | ||
Sector Technology | Industry Software - Application | Full time employees 7306 | Website https://www.paycom.com |
Full time employees 7306 | Website https://www.paycom.com | ||
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. The company offers functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. Its HCM solution provides a suite of applications in the areas of talent acquisition, including applicant tracking, background checks, on-boarding, e-verify, and tax credit services; and time and labor management, such as time and attendance, scheduling, time-off requests, and labor allocation solutions. The company's HCM solution also offers payroll applications comprising better employee transaction interface, payroll and payroll tax management, payroll card, Everyday, Paycom pay, Client Action Center, expense management, garnishment administration, and GL concierge applications; and talent management applications that include employee self-service, compensation budgeting, performance management, position management, and Paycom learning. 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; COBRA administration; personnel action and performance discussion forms; Paycom surveys; retirement 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.
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