Peeling Back The Layers: Exploring Paycor HCM Through Analyst Insights

Paycor HCM PYCR underwent analysis by 14 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Paycor HCM, revealing an average target of $22.64, a high estimate of $42.00, and a low estimate of $11.00. Highlighting a 10.73% decrease, the current average has fallen from the previous average price target of $25.36.

Interpreting Analyst Ratings: A Closer Look

A comprehensive examination of how financial experts perceive Paycor HCM is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Paycor HCM. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Paycor HCM compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Paycor HCM's stock. This analysis reveals shifts in analysts' expectations over time.

To gain a panoramic view of Paycor HCM'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 Paycor HCM analyst ratings.

Unveiling the Story Behind Paycor HCM

Paycor HCM provides payroll and human capital management solutions to small and midsize clients in the United States via a software-as-a-service model. Alongside core payroll functionality, the firm's platform offers a suite of HCM solutions including talent management and time and attendance software, third-party integration capabilities, and industry-specific configurations. The firm targets customers with 10-1,000 employees and had over 30,000 customers as of June 2023.

Paycor HCM's Financial Performance

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Paycor HCM's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 15.81%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Industrials sector.

Net Margin: Paycor HCM's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 3.31%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 0.48%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.22%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Paycor HCM's debt-to-equity ratio is below the industry average. With a ratio of 0.01, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

How Are Analyst Ratings Determined?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

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.

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