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Upturn AI SWOT - About
PAYC 
Paycom Soft (PAYC)
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Upturn Advisory Summary
06/30/2025: 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 $240.55
1 Year Target Price $240.55
| 3 | Strong Buy |
| 0 | Buy |
| 16 | Hold |
| 1 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -17.68% | 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 06/30/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 12.96B USD | Price to earnings Ratio 32.96 | 1Y Target Price 240.55 |
Price to earnings Ratio 32.96 | 1Y Target Price 240.55 | ||
Volume (30-day avg) 20 | Beta 0.82 | 52 Weeks Range 138.51 - 267.76 | Updated Date 06/30/2025 |
52 Weeks Range 138.51 - 267.76 | Updated Date 06/30/2025 | ||
Dividends yield (FY) 0.66% | Basic EPS (TTM) 7.02 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 20.6% | Operating Margin (TTM) 34.89% |
Management Effectiveness
Return on Assets (TTM) 5.59% | Return on Equity (TTM) 24.99% |
Valuation
Trailing PE 32.96 | Forward PE 26.6 | Enterprise Value 12523153433 | Price to Sales(TTM) 6.77 |
Enterprise Value 12523153433 | Price to Sales(TTM) 6.77 | ||
Enterprise Value to Revenue 6.54 | Enterprise Value to EBITDA 17.74 | Shares Outstanding 56017500 | Shares Floating 49577743 |
Shares Outstanding 56017500 | Shares Floating 49577743 | ||
Percent Insiders 11.54 | Percent Institutions 91.79 |
Analyst Ratings
Rating 4 | Target Price 240.55 | Buy - | Strong Buy 3 |
Buy - | Strong Buy 3 | ||
Hold 16 | Sell 1 | Strong Sell - | |
Strong Sell - |
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 expanded to offer a comprehensive suite of human capital management (HCM) solutions.
Core Business Areas
- Payroll: Paycom's core offering, providing payroll processing and tax compliance services.
- Talent Management: Includes tools for recruitment, onboarding, performance management, and learning management.
- Time and Attendance: Offers solutions for tracking employee work hours and managing attendance policies.
- HR Management: Provides features for managing employee data, benefits administration, and compliance.
Leadership and Structure
Chad Richison is the founder and CEO. The company has a typical corporate structure with various executive leadership positions overseeing different functional areas.
Top Products and Market Share
Key Offerings
- Payroll: Paycom's payroll software is a primary revenue driver. Market share data is dynamic, but Paycom is a significant player in the HCM market. Competitors include ADP, Paychex, and Workday. Revenue from this segment is not explicitly reported, but it represents a majority of total revenue.
- Beti (Employee Usage): Beti allows employees to manage their own payroll, reducing errors. Precise market share is hard to determine but the offering has greatly expanded Paycom's potential market share. Competitors include ADP, Paychex, and Workday.
- Applicant Tracking System (ATS): Paycom's ATS streamlines the hiring process. Market share is growing. Competitors include Greenhouse, Workday, and Lever.
Market Dynamics
Industry Overview
The HCM market is growing, driven by increasing regulatory complexity, the need for automation, and the shift to cloud-based solutions.
Positioning
Paycom is positioned as a provider of comprehensive, user-friendly HCM solutions, targeting mid-sized to large businesses. Its competitive advantage lies in its single database and focus on employee self-service.
Total Addressable Market (TAM)
The total addressable market for HCM solutions is estimated to be in the tens of billions of dollars. Paycom is well-positioned to capture a significant portion of this market due to its comprehensive suite of services and focus on employee usage and accuracy.
Upturn SWOT Analysis
Strengths
- Comprehensive HCM platform
- Strong focus on employee self-service (Beti)
- Single database architecture
- High customer retention rates
- Strong sales execution
Weaknesses
- Premium pricing compared to some competitors
- Reliance on direct sales model
- Potential for increased competition
- Historically, less focus on integrations with other systems outside of HCM
Opportunities
- Expansion into new markets and industries
- Development of new product offerings
- Strategic acquisitions to expand capabilities
- Increased adoption of cloud-based HCM solutions
Threats
- Intense competition from larger players
- Economic downturn impacting business spending
- Changes in regulatory requirements
- Cybersecurity risks
Competitors and Market Share
Key Competitors
- ADP (ADP)
- Paychex (PAYX)
- Workday (WDAY)
Competitive Landscape
Paycom's advantages include its single database and focus on employee self-service, while its disadvantages include its premium pricing and smaller size compared to ADP and Paychex. Workday focuses on larger enterprises with more complex HR needs.
Growth Trajectory and Initiatives
Historical Growth: Paycom has experienced strong revenue growth in recent years due to increased adoption of its HCM platform.
Future Projections: Analyst estimates for future growth can be found on financial websites. These projections are subject to change based on market conditions.
Recent Initiatives: Recent strategic initiatives include investments in new product development, expansion of sales and marketing efforts, and potential acquisitions.
Summary
Paycom is a strong player in the HCM market with a differentiated platform. The single database and employee focus are key strengths, and it shows in the consistent growth of the company. While facing competition from larger players, Paycom's innovation and expansion into new markets should drive future success. Continued focus on cybersecurity and product development are essential for sustainable growth.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Paycom's Investor Relations Website
- SEC Filings (10-K, 10-Q)
- Financial News Articles
- Analyst Reports
- Industry Research Reports
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Market share data is approximate and may vary depending on the source. Financial projections are based on analyst estimates and 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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