ScoreWhy is Paycom Software, Inc. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 24.01%
- Healthy long term growth as Net Sales has grown by an annual rate of 19.86% and Operating profit at 19.43%
- Company has a low Debt to Equity ratio (avg) at times
2
Flat results in Jun 25
- INTEREST(9M) At USD 2.6 MM has Grown at 42.08%
- NET PROFIT(HY) At USD 228.9 MM has Grown at -27.37%
- ROCE(HY) Lowest at 25.76%
3
With ROE of 22.96%, it has a fair valuation with a 9.61 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -30.87%, its profits have fallen by -15.9%
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -30.87% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Paycom Software, Inc. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Paycom Software, Inc. for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Paycom Software, Inc.
-42.7%
0.37
36.38%
S&P 500
19.75%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
19.51%
EBIT Growth (5y)
24.97%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.29
Sales to Capital Employed (avg)
1.18
Tax Ratio
28.22%
Dividend Payout Ratio
18.57%
Pledged Shares
0
Institutional Holding
98.23%
ROCE (avg)
44.46%
ROE (avg)
24.01%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
3.96
EV to EBIT
11.48
EV to EBITDA
7.78
EV to Capital Employed
4.69
EV to Sales
3.17
PEG Ratio
NA
Dividend Yield
132.33%
ROCE (Latest)
40.81%
ROE (Latest)
24.70%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 710.2 MM
ROCE(HY)
Highest at 37.15%
RAW MATERIAL COST(Y)
Fallen by 0.03% (YoY
NET SALES(Q)
Highest at USD 571.9 MM
OPERATING PROFIT(Q)
Highest at USD 281 MM
OPERATING PROFIT MARGIN(Q)
Highest at 49.13 %
PRE-TAX PROFIT(Q)
Highest at USD 206.3 MM
NET PROFIT(Q)
Highest at USD 149.19 MM
EPS(Q)
Highest at USD 3.04
-14What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 7,025
DEBT-EQUITY RATIO
(HY)
Highest at 75.11 %
INTEREST(Q)
Highest at USD 4 MM
Here's what is working for Paycom Software, Inc.
Operating Cash Flow
Highest at USD 710.2 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 571.9 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 281 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 49.13 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 206.3 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 206.3 MM has Grown at 41.33%
over average net sales of the previous four periods of USD 145.98 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 149.19 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 3.04
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by 0.03% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Paycom Software, Inc.
Interest
At USD 4 MM has Grown at 400%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 7,025
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at USD 4 MM
in the last five periods and Increased by 400% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debt-Equity Ratio
Highest at 75.11 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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