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 buy?
- 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.
-48.16%
0.37
36.38%
S&P 500
11.87%
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
95.64%
ROCE (avg)
44.46%
ROE (avg)
24.01%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
4.18
EV to EBIT
12.14
EV to EBITDA
8.23
EV to Capital Employed
4.96
EV to Sales
3.36
PEG Ratio
NA
Dividend Yield
125.46%
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
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 678.9 MM
INTEREST COVERAGE RATIO(Q)
Highest at 30,800
RAW MATERIAL COST(Y)
Fallen by -0.13% (YoY
NET SALES(Q)
Highest at USD 544.3 MM
OPERATING PROFIT(Q)
Highest at USD 246.4 MM
-4What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at -16.15 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 23.56 times
Here's what is working for Paycom Software, Inc.
Operating Cash Flow
Highest at USD 678.9 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)
Interest Coverage Ratio
Highest at 30,800
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales
Highest at USD 544.3 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 246.4 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Raw Material Cost
Fallen by -0.13% (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
Depreciation
Highest at USD 89.2 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Depreciation
At USD 89.2 MM has Grown at 40.69%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (USD MM)
Here's what is not working for Paycom Software, Inc.
Debt-Equity Ratio
Highest at -16.15 %
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
Debtors Turnover Ratio
Lowest at 23.56 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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