Paycom Software Stock Analysis, Valuation (NYSE:PAYC)

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$141.61 $1.74 (1.24%) PAYC stock closing price Aug 20, 2018 (Closing)

Investors can watch the Amigobulls Paycom Software stock analysis video here. This video puts forward our latest analysis highlighting the pros and cons for PAYC stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Paycom Software Inc Stock Rating 4.1/5

Amigobulls PAYC stock analysis relies on business fundamentals such as Paycom Software revenue growth, profits and return on equity measures from the latest quarter 2018 Q2 earnings. We compare Paycom Software valuation with its sector peers to gauge relative attractiveness of PAYC stock. Our Paycom Software stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy PAYC stock?

  • The Year Over Year (YoY) revenue growth for Paycom Software was 28.8% in 2018-03.
  • The TTM operating margin was good at 19.46 for Paycom Software.
  • Net margins stood at a healthy 17.6% (average) for Paycom Software in the Trailing Twelve Months.
  • With its debt/equity ratio of 0.11, Paycom Software has a lower debt burden when compared to the Computer and Technology average.
  • Paycom Software's return on invested capital of 55.6 is good.
  • The LTM ROE of 44.9 for Paycom Software is attractive.
  • The company has a healthy free cash flow margin of 25.3.

Should you sell PAYC stock?

  • The PAYC stock currently trades at a PE of 80.9, which is expensive, compared to the sector average of 25.4.
  • The company is trading at a price to sales multiple of 16.1, which is higher in comparison to the Computer and Technology sector average of 2.9, making PAYC stock expensive.

Comments on this video and Paycom Software stock

Investors can make use of the Amigobulls Paycom Software stock analysis to ascertain how PAYC stock fares in fundamental analysis investment criteria. Fundamentals of a company give detailed information which helps in making invesment decisions.

While doing a study of the company financials, Paycom Software revenue growth and profit or net income are two main metrics which help in identifying whether PAYC stock is overvalued or undervalued. Investors could make use of PAYC technical analysis to check whether the fundamental story is reflected in the market sentiment.