Paycom Software Stock: A Deep Dive Into Analyst Perspectives (15 Ratings)

In the last three months, 15 analysts have published ratings on Paycom Software PAYC, offering a diverse range of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts have set 12-month price targets for Paycom Software, revealing an average target of $222.6, a high estimate of $399.00, and a low estimate of $160.00. Highlighting a 37.44% decrease, the current average has fallen from the previous average price target of $355.82.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Paycom Software among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Paycom Software. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Paycom Software compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Paycom Software's stock. This analysis reveals shifts in analysts' expectations over time.

To gain a panoramic view of Paycom Software's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Paycom Software analyst ratings.

Delving into Paycom Software's Background

Paycom is a fast-growing provider of payroll and human capital management, or HCM, software primarily targeting clients with 50-10,000 employees in the United States. Paycom was established in 1998 and services about 19,000 clients as of 2022, based on parent company grouping. Alongside its core payroll software, Paycom offers various HCM add-on modules, including time and attendance, talent management, and benefits administration.

Understanding the Numbers: Paycom Software's Finances

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Paycom Software's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 21.59%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Paycom Software's net margin excels beyond industry benchmarks, reaching 18.51%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Paycom Software's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 5.32%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Paycom Software's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.93%, the company showcases efficient use of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.02, Paycom Software adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding the Relevance of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.