Paycom Software Intrinsic Value Calculation – Arizona State Retirement System Increases Investment in Paycom Software, Inc
July 20, 2023
🌥️Trending News
The Arizona State Retirement System (ASRS) has recently announced that it has increased its investment in Paycom Software ($NYSE:PAYC), Inc. (PAYC). PAYC is seen as a leader in the industry due to their robust and innovative technology. The company also offers a range of services that are tailored to meet the needs of their clients, such as strategic planning, data integration, reporting analysis, and more. The ASRS is one of the largest buyers of PAYC stock, and their increased investment speaks volumes about their confidence in the future of the company. The investment also shows their commitment to helping their members maintain financial security in retirement.
As PAYC’s stock continues to rise, they will be able to help more and more people achieve their goals of long-term financial stability. The expanded investment by the ASRS is a testament to the success of PAYC Software, Inc., and it is a sure sign that they will continue to be a major player in the payroll and HR technology space. Their innovative technology and commitment to providing quality services to their customers have allowed them to carve out a place in the industry and secure an increasingly larger share of the market.
Share Price
The Arizona State Retirement System announced on Wednesday that it would be increasing its investment in the stock of Paycom Software, Inc. The announcement came as the company’s stock opened at $365.1 and closed at $365.5, a small increase of 0.5% from the previous closing price of $363.8. The news of the increased investment caused a slight jump in the stock’s value, with a potential for further movement in the near future. This is the latest in a series of positive news items for Paycom Software, Inc., as the company continues to experience growth and expand its presence in the corporate world. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Paycom Software. More…
| Total Revenues | Net Income | Net Margin |
| 1.47k | 308.75 | 21.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Paycom Software. More…
| Operations | Investing | Financing |
| 393.98 | 3.72 | -1.66k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Paycom Software. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.24k | 2.91k | 22.13 |
Key Ratios Snapshot
Some of the financial key ratios for Paycom Software are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 23.6% | 17.7% | 29.2% |
| FCF Margin | ROE | ROA |
| 17.0% | 21.4% | 6.3% |
Analysis – Paycom Software Intrinsic Value Calculation
At GoodWhale, we recently conducted an analysis of PAYCOM SOFTWARE‘s wellbeing. After taking into account all relevant factors, we concluded that the intrinsic value of PAYCOM SOFTWARE’s stock is around $486.7. This figure was calculated using our proprietary Valuation Line, which takes into account various components such as cash flow, earnings per share, and market capitalization. Currently, PAYCOM SOFTWARE’s stock is being traded for $365.5 per share, representing a 24.9% discount to our calculated intrinsic value. We believe this is an opportunity to invest in an undervalued stock with strong potential for growth. More…
Peers
The competition in the human capital management software market is heating up. Paycom Software Inc is going up against some big names such as Paylocity Holding Corp, Workday Inc, and Ramco Systems Ltd. While each company has its own strengths and weaknesses, it seems that Paycom is gaining ground in the competition.
– Paylocity Holding Corp ($NASDAQ:PCTY)
Paylocity Holding Corporation provides cloud-based payroll and human capital management solutions in the United States. The company’s solutions include Paylocity Web Pay, a cloud-based payroll solution that offers a suite of tools to manage an employee’s payroll needs; Paylocity Web HR, an online human resource information management solution; Talent Management, a recruiting and performance management solution; and Paylocity Performance, a cloud-based employee performance management solution.
– Workday Inc ($NASDAQ:WDAY)
Workday Inc is a leading provider of enterprise cloud applications for finance and human resources. The company has a market cap of 38.27B as of 2022 and a return on equity of -1.84%. Workday Inc provides a suite of financial and human resources applications that are designed to help organizations manage their finances and workforce more effectively. The company’s products are used by organizations of all sizes, from small businesses to large enterprises. Workday Inc’s products are delivered through a cloud-based model, which allows organizations to access the applications from anywhere in the world and pay for only the resources they use.
– Ramco Systems Ltd ($BSE:532370)
Ramco Systems is a global enterprise software company specializing in enterprise resource planning (ERP), enterprise asset management (EAM), and aircraft maintenance, repair, and overhaul (MRO) software. The company has a market cap of 7.82 billion as of 2022 and a return on equity of -11.06%. The company’s products are used by organizations in a variety of industries, including aerospace and defense, automotive, construction and engineering, manufacturing, and logistics.
Summary
Paycom Software, Inc. is becoming an increasingly attractive option for investors. The Arizona State Retirement System has recently increased its stock position in the company, indicating confidence in its potential. The company has also enjoyed strong performance in its most recent results, which saw revenue and earnings per share increase year-on-year.
Further, it has a strong balance sheet and cash position, offering investors a good degree of stability. All these factors suggest that Paycom is a good option for investors looking for a stable and promising holding.
