NYSE
PAYC
Last Price
US $125.68
KEY FIGURES
MKT CAP
$7.1B
EPS
TTM
$9.19
PEG
TTM
N/M
P/E
TTM
14.88x
P/S
TTM
3.44x
YIELD
1.16%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
31.03%
Return on equity
ROIC: 21.47%
Valuation History
14.9X
Price to Earnings
EV/EBITDA: 9.1X
Cash flow
Profit margin
19.51%
(FY vs FY)
EBITDA Y/Y
27.27%
(FY vs FY)
Cash flow Y/Y
25.11%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $125.68
9.37%
Default assumptions
EBITDA Multiple
Fair Value
Market $125.68
-14.80%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Paycom Software, Inc. cash flow to debt ratio of 446.06% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.
Financial stability - Healthy cash flow growth.
Paycom Software, Inc.'s free cash flow has increased 21.21% from $336.60M last year to $408.00M, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
Paycom Software, Inc.'s debt to equity ratio is 0.94, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Paycom Software, Inc.'s debt has increased relative to shareholder equity from 0.05 last year to 0.94 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
Paycom Software, Inc. has a net debt to EBITDA ratio of 0.00x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Paycom Software, Inc.'s interest coverage ratio of 88.42 indicates that earnings with good margin can cover interest payments on company debt
Financial risk - Profit margin growth.
Paycom Software, Inc.'s profit margin has decreased (-15.82%) in the last year from 26.66% to 22.44%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
Paycom Software, Inc.'s short-term assets of $5.84G exceed its short-term liabilities of $5.37G
Increasing performance - ROA.
Paycom Software, Inc.'s return on assets of 9.74% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Paycom Software, Inc.'s return on equity of 31.03%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Paycom Software, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Paycom Software, Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Paycom Software, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Paycom Software, Inc. has a free cash flow yield of 5.79%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
Paycom Software, Inc.'s yearly earnings has decreased -9.68% since last year from $502.00M to $453.40M, signaling decreasing performance
Increasing performance - Healthy revenue growth.
Paycom Software, Inc.'s yearly revenue has increased 8.95% since last year from $1.88G to $2.05G, signaling increasing performance
Increasing performance - ROIC.
ROIC 21.47% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Paycom Software, Inc.'s 3-year revenue CAGR of 14.27% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Paycom Software, Inc. had revenue growth in 5.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Paycom Software, Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Undervalued - DCF valuation.
Paycom Software, Inc. is undervalued relative to its fair value price of 137.45 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Paycom Software, Inc. has an earnings yield of 7.12%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Paycom Software, Inc. is overvalued relative to its fair value price of 107.08 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Paycom Software, Inc. has an EV/EBITDA ratio of 9.13x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Paycom Software, Inc. has a PEG-ratio under 1 which is considered undervalued
Overvalued - P/B ratio.
Paycom Software, Inc. has a price-to-book ratio of 8.13x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Undervalued - P/S ratio.
Paycom Software, Inc. has a price-to-sales ratio of 3.37x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue