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Upturn AI SWOT - About
PAYC 
Paycom Soft (PAYC)
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Upturn Advisory Summary
09/11/2025: PAYC (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
20 Analysts rated it
Well-followed company, solid analyst reports, reliable data for confident investing.
1 Year Target Price $248.73
1 Year Target Price $248.73
| 3 | Strong Buy |
| 0 | Buy |
| 16 | Hold |
| 1 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -17.69% | Avg. Invested days 36 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 09/11/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 12.73B USD | Price to earnings Ratio 30.59 | 1Y Target Price 248.73 |
Price to earnings Ratio 30.59 | 1Y Target Price 248.73 | ||
Volume (30-day avg) 20 | Beta 0.81 | 52 Weeks Range 157.02 - 267.33 | Updated Date 09/11/2025 |
52 Weeks Range 157.02 - 267.33 | Updated Date 09/11/2025 | ||
Dividends yield (FY) 0.68% | Basic EPS (TTM) 7.4 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 21.21% | Operating Margin (TTM) 23.22% |
Management Effectiveness
Return on Assets (TTM) 6.49% | Return on Equity (TTM) 25.75% |
Valuation
Trailing PE 30.59 | Forward PE 22.08 | Enterprise Value 11974956482 | Price to Sales(TTM) 6.5 |
Enterprise Value 11974956482 | Price to Sales(TTM) 6.5 | ||
Enterprise Value to Revenue 6.11 | Enterprise Value to EBITDA 16.39 | Shares Outstanding 56256600 | Shares Floating 49751644 |
Shares Outstanding 56256600 | Shares Floating 49751644 | ||
Percent Insiders 11.59 | Percent Institutions 92.05 |
Upturn AI SWOT
Paycom Soft
Company Overview
History and Background
Paycom was founded in 1998 by Chad Richison. It initially focused on online payroll services and has since expanded into a comprehensive suite of human capital management (HCM) solutions. Key milestones include its IPO in 2014 and consistent growth through product innovation and acquisitions.
Core Business Areas
- Payroll: Provides payroll processing services, including tax filing, direct deposit, and wage garnishment processing.
- Human Resources: Offers HR management tools such as benefits administration, performance management, and employee relations.
- Talent Management: Includes solutions for recruiting, applicant tracking, onboarding, and talent development.
- Time and Labor Management: Provides time tracking, attendance management, and scheduling tools.
Leadership and Structure
Chad Richison is the founder, President, and CEO. The company has a typical corporate structure with departments for sales, marketing, technology, and finance. The board of directors provides oversight and strategic direction.
Top Products and Market Share
Key Offerings
- Payroll & Tax Management: Paycom's core offering, processing payroll and managing payroll taxes. They claim to be the first to offer a single database, end-to-end payroll and HR technology. Market share is estimated around 6-7% of the HCM market. Competitors: ADP (ADP), Paychex (PAYX), Workday (WDAY).
- Revenue Contribution: Largest portion of overall revenue.
- Users: Serves over 35,000 clients
- Revenue Contribution: Substantial revenue contributor.
- Time and Attendance: A system for tracking employees' time and attendance. Competitors: Kronos (UKG), ADP (ADP), Paychex (PAYX).
- Users: Integrated into the larger Paycom Suite for Paycom's clients
- HR Management: Software providing tools for onboarding, employee management, and benefits administration. Competitors: Workday (WDAY), Oracle (ORCL), SAP (SAP).
- Revenue Contribution: Contributing substantially and growing revenue.
- Users: Integrated into the larger Paycom Suite for Paycom's clients
Market Dynamics
Industry Overview
The HCM market is growing due to increasing complexity of labor laws, remote work trends, and demand for integrated solutions. Cloud-based solutions are becoming increasingly popular.
Positioning
Paycom positions itself as a provider of comprehensive, cloud-based HCM solutions primarily targeting mid-sized businesses. Its competitive advantages include its single database architecture and focus on user experience.
Total Addressable Market (TAM)
The TAM for HCM software is estimated to be over $30 billion. Paycom is capturing a growing share of this market, indicating significant growth potential.
Upturn SWOT Analysis
Strengths
- Single database architecture
- Strong focus on user experience
- High customer retention rates
- Innovative product development
- Strong Sales organization
Weaknesses
- Reliance on direct sales model
- Higher price point compared to some competitors
- Limited international presence
- Smaller client base relative to ADP or Paychex
- Subject to wage growth/inflation.
Opportunities
- Expansion into new markets
- Further product innovation (e.g., AI-powered solutions)
- Strategic acquisitions
- Increased adoption of cloud-based HCM solutions
- Cross-selling other product lines
Threats
- Increased competition from larger players
- Economic downturn affecting employment rates
- Changes in labor laws and regulations
- Cybersecurity threats
- Consolidation of HCM Vendors
Competitors and Market Share
Key Competitors
- ADP
- PAYX
- WDAY
Competitive Landscape
Paycom differentiates itself with a single database architecture and strong user experience, allowing for high customer retention. Larger competitors like ADP and Paychex have a broader range of services and greater market presence.
Major Acquisitions
Vera Payroll
- Year: 2021
- Acquisition Price (USD millions): 52.5
- Strategic Rationale: Expanded Paycom's service offerings and client base, especially in the small-to-medium sized market.
Growth Trajectory and Initiatives
Historical Growth: Paycom has experienced rapid revenue growth in recent years due to strong sales execution and product innovation.
Future Projections: Analysts project continued revenue growth, driven by increasing market share and expansion into new markets. However, revenue growth is projected to slow slightly.
Recent Initiatives: Recent initiatives include enhanced mobile app capabilities, expansion of its Beti employee usage platform, and integrations with other HR systems. A recent focus is on attracting larger enterprise clients.
Summary
Paycom is a rapidly growing HCM provider known for its innovative single database architecture and strong user experience. It has shown consistent revenue growth and strong customer retention. While it has a higher price point and smaller client base compared to larger competitors, it is positioned well for continued growth in the expanding HCM market. Recent Net Income declines are a cause for caution.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (10-K, 10-Q)
- Earnings Call Transcripts
- Analyst Reports
- Industry Publications
- Company website
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual research and consultation with a qualified financial advisor. Market Share data is approximate.
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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