July 23, 2025 a 08:00 am
PAYC: Fundamental Ratio Analysis - Paycom Software, Inc.
Paycom Software, Inc. has established itself as a key player in the cloud-based human capital management industry, offering comprehensive solutions for managing the employee life cycle. The company's robust performance is evidenced by strong fundamentals, positioning it as a compelling option for stakeholders. However, market fluctuations and competitive pressures remain potential areas of concern.
Fundamental Rating
The fundamental rating of Paycom Software demonstrates solid performance metrics, particularly in equity returns and discounted cash flow analyses.
| Category | Score | Visual |
|---|---|---|
| Overall Score | 4 | |
| Discounted Cash Flow | 4 | |
| Return on Equity | 5 | |
| Return on Assets | 4 | |
| Debt to Equity | 4 | |
| Price to Earnings | 2 | |
| Price to Book | 2 |
Historical Rating
The historical data reflects the company's consistent performance, with recent scores maintaining the overall rating stability.
| Date | Overall | DCF | ROE | ROA | Debt/Equity | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-07-22 | 4 | 4 | 5 | 4 | 4 | 2 | 2 |
| Previous | 0 | 4 | 5 | 4 | 4 | 2 | 2 |
Analyst Price Targets
Analyst projections suggest a stable outlook, with a median price target indicating moderate growth potential.
| High | Low | Median | Consensus |
|---|---|---|---|
| $245 | $221 | $233 | $233 |
Analyst Sentiment
The sentiment among analysts is mostly neutral, with a predominance of hold recommendations.
| Recommendation | Count | Distribution |
|---|---|---|
| Strong Buy | 0 | |
| Buy | 15 | |
| Hold | 19 | |
| Sell | 1 | |
| Strong Sell | 0 |
Conclusion
Paycom Software, Inc. showcases a solid fundamental foundation, appealing primarily to those seeking stability in their investments. With strong returns on equity and effective cash flow management, it remains a formidable player in its industry. Nonetheless, the prevailing hold sentiment among analysts reflects uncertainties tied to market dynamics. Prospective investors should weigh these factors against the backdrop of competitive pressures and market volatility.