Price to Operating Profit (P/OP)
since 2014
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Paycom Software Inc. pages available for free this week:
- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Net Profit Margin since 2014
- Operating Profit Margin since 2014
- Return on Assets (ROA) since 2014
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Calculation
Paycom Software Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 16, 2023 | = | ÷ | = | ÷ | |||||||
| Feb 17, 2022 | = | ÷ | = | ÷ | |||||||
| Feb 18, 2021 | = | ÷ | = | ÷ | |||||||
| Feb 13, 2020 | = | ÷ | = | ÷ | |||||||
| Feb 14, 2019 | = | ÷ | = | ÷ | |||||||
| Feb 14, 2018 | = | ÷ | = | ÷ | |||||||
| Feb 21, 2017 | = | ÷ | = | ÷ | |||||||
| Feb 22, 2016 | = | ÷ | = | ÷ | |||||||
| Feb 26, 2015 | = | ÷ | = | ÷ |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Paycom Software Inc. Annual Report.
- Share Price
- The share price demonstrated a strong upward trajectory from 2015 through 2021, increasing from $32.84 in 2015 to a peak of $401.55 in 2021. This represents a more than twelvefold increase during this period. Following this peak, the share price declined to $327.72 in 2022 and further to $307.45 in 2023, indicating a notable correction or market adjustment after several years of rapid growth.
- Operating Profit Per Share
- The operating profit per share showed consistent growth throughout the entire timeframe. Starting at $0.29 in 2015, it increased steadily each year, reaching $6.54 in 2023. Despite some year-to-year variations in the rate of increase, the overall trend was significant improvement in profitability on a per-share basis.
- Price-to-Operating Profit Ratio (P/OP)
- The price-to-operating profit ratio displayed considerable volatility over the years. From a high multiple of 112.64 in 2015, it decreased sharply to 48.57 in 2016, then fluctuated between approximately 47 and 125. The highest ratio appeared in 2021 at 124.57, coinciding with the peak share price. By 2023, the ratio had declined to 46.99, indicating that the share price became relatively more aligned or less overvalued compared to operating profits in recent years.
- Overall Insights
- The financial data indicates that while the company experienced strong growth in both share price and operating profit per share from 2015 to 2021, the share price corrected downward after peaking, despite continued growth in operating profit per share. The fluctuation and ultimate decline in the P/OP ratio suggest a market reassessment of valuation multiples, possibly reflecting expectations of more tempered future growth or changing market conditions. The consistent increase in operating profit per share underlines solid operational performance during the entire period assessed.