Analytical market review: Paycom Software, Inc. (NYSE: PAYC)

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Stock Shares Price Update: Paycom Software, Inc (NYSE: PAYC)

On 21 Feb 2020, Paycom Software, Inc stock figure shut its day with plunged -3.20% and conclude at the price of $300.39 and a distance of -12.17% away from its 52 week- top value and changed 77.68% from its 52 week-lowest price value.  Throughout its latest trading session, Stock negotiated with the total exchanged volume of 772209 shares. The average volume stands around 848.64 shares. The average numbers of shares are traded in a security per day, during the recent 3-month period.  The stock has relative volume of 0.91. Relative volume is ratio between current volume and 3-month average value, intraday adjusted.

Paycom Software, Inc (PAYC) recently reported its financial results for the quarter and year ended December 31, 2019.

“2019 was another exceptional year for Paycom. We strengthened our position in the human capital management industry with new product innovations, unparalleled service and an unrelenting focus on adding value for our clients,” stated Paycom’s founder and CEO, Chad Richison. “Our differentiated product strategy is driving rapid revenue growth, and high employee usage is driving higher yearly revenue retention. Based on the strong momentum we are seeing; we believe we are well positioned to deliver an enviable combination of high revenue growth and high margins for years to come.”

Financial Highlights for the Fourth Quarter of 2019

Total Revenues of $193.4M represented a 29% increase contrast to total revenues of $150.3M in the same period last year. Recurring revenues of $190.2M increased 29% from the comparable previous year period, and constituted 98% of total revenues.

GAAP Net Income was $45.4M, or $0.78 per diluted share, contrast to GAAP net income of $31.4M, or $0.54 per diluted share, in the same period last year.

Non-GAAP Net Income (1) was $50.5M, or $0.86 per diluted share, contrast to $35.4M, or $0.61 per diluted share, in the same period last year.

Adjusted EBITDA (1) was $78.6M, contrast to $57.5M in the same period last year.

Cash and Cash Equivalents were $133.7M as of December 31, 2019, contrast to $45.7M as of December 31, 2018.

Total Debt, Net was $32.6M as of December 31, 2019, contrast to $34.4M as of December 31, 2018.

Financial Highlights for the Full Year 2019

Total Revenues of $737.7M represented a 30% increase contrast to total revenues of $566.3M last year. Recurring revenues of $724.4M increased 30% from the previous year, and constituted 98% of total revenues.

GAAP Net Income was $180.6M, or $3.09 per diluted share, contrast to GAAP net income of $137.1M, or $2.34 per diluted share, last year.

Non-GAAP Net Income (1) was $204.6M, or $3.50 per diluted share, contrast to $156.6M, or $2.67 per diluted share last year.

Adjusted EBITDA (1) was $317.9M, contrast to $240.9M last year.

(1) Adjusted EBITDA and non-GAAP net income are non-GAAP financial measures. Please see the discussion below under the heading “Use of Non-GAAP Financial Information” and the reconciliations at the end of this release for additional information concerning these and other non-GAAP financial measures.

Business Highlights

Paycom increased its yearly revenue retention rate to 93%, up from 92% in 2018 and 91% for each of the preceding six years.

Paycom introduced several differentiated new products including Direct Data ExchangeTM (an industry first), Ask HereTM and Manager on-the-GoTM, all of which focus on greater employee usage and efficiency.

Paycom earned Best Places to Work in the U.S. honors from Glassdoor for 2020, and the Wall Street Journal listed Paycom as one of the Best Managed Companies in the U.S.

Paycom was included in the S&P 500 index on January 28, 2020.

The company gives a ROE of 39.40%. The higher the ROE, the better the company is at creating profits. ROI is 32.30%. Traders and technical analysts have the ability to use volume to help measure the strength of a particular move. Investors may also view volume levels when the stock price is nearing significant support or resistance levels, in order to confirm a breakout in either direction.  The ROA is 9.10%.  A company that manages their assets well will have a high return, while if manages their assets poorly will have a low return.

ATR value of company was 11.07. A stock rating will usually tell the investor how well a stock’s market value relates to what analysts believe is a fair value for the stock, based on an objective evaluation of the company. Analyst recommendations as reported on FINVIZ are rated on a 1 to 5 scale. 1 is equivalent to a Strong Buy rating, 3 a hold rating, and 5 a Strong Sell rating. The consensus recommendation is the average rating on a stock by the analyst community.

To review the Paycom Software, Inc. previous performance, look at its past history, which highlighted below: During last 5 trades the stock fixed almost -0.0096.  During last 30 days it showed the change of -0.0095. During last 3 month it remained at 0.2543. During last 1 year it moved at 0.6788. Along with these its (YTD) year to date performance is standing at 0.1346.

In Application Software Industry Paycom Software, Inc. have 56.33 outstanding shares currently held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders. The company have shares float of 49.43. You invest to earn a return on your money, but returns are not the only consideration. Risk and return are connected. Generally, the higher the risk of an investment, the higher the potential return.  Here beta – measures how the stock is doing compared to a given benchmark, such as the S&P TSX Composite Index.

Analysts’ mean recommendation for Paycom Software, Inc. stands at 2.3.  Rating Scale; where 1.0 rating means Strong Buy, 2.0 rating signify Buy, 3.0 recommendation reveals Hold, 4.0 rating score shows Sell and 5.0 displays Strong Sell signal.

Application Software based company, Paycom Software, Inc.’s latest closing price distance was 23.88% from the average-price of 200 days while it maintained a distance from the 50 Day Moving Average at 3.74% and -3.94% compared with the 20 Day Moving Average.

The stock price weekly volatility remained at -0.0096 while volatility is standing at -0.0095 for the month. A beta of 1.0 tells you that a stock has been going up and down with the overall stock market. A stock with a beta between 0.0 and 1.0 has smaller ups and downs. A beta greater than 1.0 has wider price swings. Stocks with a negative beta are moving opposite to the index. When you invest in a stock, you could lose all of your money – in some cases, more than you invested. Before you buy a stock, understand the risks and decide if they are risks you are comfortable taking.