Paycom is a leader in the human capital management/payroll software industry that continues to take market share from long-standing incumbents. Customers love Paycom for its integrated software offering with robust self-service capabilities and the excellent service the Paycom team delivers. The company has a highly repeatable sales process and a solid track record for selling more to existing customers while acquiring new users. Paycom is an emerging leader in a large addressable market where they believe they are only just beginning to scratch the surface.
Paycom Software, Inc. provide a comprehensive, cloud-based human capital management (HCM) solution offered as a Software-as-a-Service. The solution offers.
Historical daily share price chart and data for the Paycom Software since 01-08-2020 adjusted for splits. The latest closing stock price for Paycom Software as of February 01, 2024, is $190.
On a trailing basis, Paycom currently trades at multiples of 6.5x EV/sales, 18x EV/EBITDA, and 33x P/E. Given the growth profile of the business, it makes sense to value Paycom using a DCF approach as well. The company has a diluted share count of 57 million, that vest upon Paycom achieving an enterprise value of $10 billion.
Paycom Software, Inc., a prominent cloud-based human capital management software provider, exhibits strong financial performance with a Return on Equity (ROE) of 27%, Return on Assets (ROA) of 9%. These metrics highlight the company's effective use of equity and assets to generate profit and its significant potential for continued growth.
Revenue Key drivers
Paycom’s revenue streaming is diversified across several operational areas including talent acquisition, time and labor management, payroll, talent management, HR management, and Global HCM applications. Additional revenue streams come from fees associated with form filings and the delivery of client payroll checks and reports.
. Talent Acquisition:Paycom talent acquisition segment contributes significantly to Paycom recurring revenue through various applications:
- Applicant Tracking
- Candidate Tracker
- Enhanced Background Checks®
- Tax Credit Services
2. Time and Labor Management:This segment includes a range of tools and applications that streamline time and labor processes:
- Time and Attendance
- Scheduling/Schedule Exchange
- Time-Off Requests
- Labor Allocation
- Labor Management Reports/Push Reporting®
3. Payroll:Paycom payroll services are comprehensive, encompassing:
- Payroll and Tax Management
- Paycom Pay
- Expense Management
4. Talent Management:Talent management is another critical area, with applications including:
- Employee SelfService®
- Compensation Budgeting
- Performance Management
- Position Management
- My Analytics
- Paycom Learning and Content Subscriptions
5. HR Management:The HR management segment offers a variety of tools to assist in human resPaycomces tasks:
- Manager on-the-Go®
- Direct Data Exchange®
- Documents and Checklists
- Government and Compliance
- Benefits Administration/Benefits to Carrier
- Benefit Enrollment Service
- COBRA Administration
- Personnel Action Forms
- Performance Discussion Forms
- Client Action
The diverse and robust nature of Paycom recurring revenue streams, underlining the company's strength in delivering a wide range of applications and services across various sectors of business operations. This diversification not only stabilizes Paycom revenue streams but also positions us to capitalize on multiple aspects of the growing digital business solutions market.
The following tables provide a summary of
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