Stock Analysis on Net
Stock Analysis on Net

Paycom Software Inc. (NYSE:PAYC)

This company has been moved to the archive! The financial data has not been updated since November 2, 2023.

Common Stock Valuation Ratios (Price Multiples) 
Quarterly Data

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Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).

Historical Valuation Ratios (Summary)

Paycom Software Inc., historical price multiples (quarterly data)

Microsoft Excel
Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Price to earnings (P/E) 27.69 54.47 52.48 63.23 75.50 91.42 78.26 97.02 173.00 156.95 130.34 161.62 130.80 97.67 76.37 96.85 73.20 87.78 80.92
Price to operating profit (P/OP) 20.84 40.22 39.25 46.99 55.30 67.23 61.25 74.98 134.25 124.97 98.78 124.57 102.35 75.89 59.25 77.30 58.26 70.32 62.57
Price to sales (P/S) 5.76 11.05 11.00 12.94 14.64 17.23 15.37 18.01 29.95 28.42 21.70 27.55 26.43 21.71 19.22 23.71 17.56 21.01 18.92
Price to book value (P/BV) 6.60 12.23 12.14 15.05 17.54 21.00 17.32 21.27 35.98 33.43 25.36 35.36 34.02 29.37 24.99 33.21 25.68 31.54 29.07

Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

Price to Earnings (P/E) Ratio
The P/E ratio exhibits a fluctuating yet generally declining trend from March 2019 to September 2023. Starting at 80.92 in early 2019, it reached a peak of 173 by September 2021. After this peak, the ratio steadily decreased, falling to 27.69 by September 2023. This decline may indicate that the market price relative to earnings has become more conservative over time, potentially reflecting changes in growth expectations or profitability.
Price to Operating Profit (P/OP) Ratio
This ratio follows a pattern similar to the P/E ratio, with fluctuations and an overall downward movement over the observed periods. It increased from 62.57 in March 2019 to a high of 134.25 in September 2021, followed by a continuous decline to 20.84 by September 2023. The contraction in this metric suggests reduced market valuation relative to operating profitability, which could signal a reassessment of operating efficiency or future earnings potential.
Price to Sales (P/S) Ratio
The P/S ratio shows volatility with an upward thrust culminating at 29.95 in September 2021 before a notable decline. Its value fell consistently thereafter, arriving at 5.76 in September 2023. This drop points to a market price adjustment relative to sales revenue, possibly reflecting concerns about revenue growth sustainability or margin pressures.
Price to Book Value (P/BV) Ratio
The P/BV ratio demonstrated a similar trend with an increase from 29.07 in March 2019 to a peak of 35.98 in September 2021. Subsequently, it declined steadily down to 6.6 by September 2023. This trend may be indicative of diminishing investor confidence in the book value or a market reevaluation of equity worth relative to its historical cost base.

Price to Earnings (P/E)

Paycom Software Inc., historical P/E calculation (quarterly data)

Microsoft Excel
Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
No. shares of common stock outstanding1 57,700,820 57,949,090 57,873,095 57,871,962 57,866,465 57,865,148 58,041,860 58,014,548 57,996,615 57,917,371 57,792,986 57,739,986 57,631,041 57,603,897 57,433,079 57,661,188 57,657,405 57,651,234 57,510,640
Selected Financial Data (US$)
Net income (in thousands) 75,219 64,516 119,296 79,951 52,153 57,355 91,930 48,687 30,379 52,278 64,616 24,367 27,482 28,589 63,015 45,380 39,152 48,762 47,282
Earnings per share (EPS)2 5.87 5.45 5.34 4.86 4.32 3.95 3.85 3.38 2.96 2.91 2.51 2.48 2.85 3.06 3.42 3.13 2.89 2.71 2.49
Share price1, 3 162.66 296.95 279.99 307.45 326.33 360.77 301.05 327.72 512.00 457.27 327.15 401.55 373.26 298.66 261.02 303.29 211.53 237.88 201.47
Valuation Ratio
P/E ratio4 27.69 54.47 52.48 63.23 75.50 91.42 78.26 97.02 173.00 156.95 130.34 161.62 130.80 97.67 76.37 96.85 73.20 87.78 80.92

Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Data adjusted for splits and stock dividends.

2 Q3 2023 Calculation
EPS = (Net incomeQ3 2023 + Net incomeQ2 2023 + Net incomeQ1 2023 + Net incomeQ4 2022) ÷ No. shares of common stock outstanding
= (75,219,000 + 64,516,000 + 119,296,000 + 79,951,000) ÷ 57,700,820 = 5.87

3 Closing price as at the filing date of Paycom Software Inc. Quarterly or Annual Report.

4 Q3 2023 Calculation
P/E ratio = Share price ÷ EPS
= 162.66 ÷ 5.87 = 27.69

Share Price
The share price exhibited considerable volatility over the observed periods. Initially, it showed a general upward trend, increasing from $201.47 at the end of Q1 2019 to a peak of $512.00 in Q3 2021. Following this peak, the share price experienced a notable decline, dropping to $162.66 by Q3 2023. Hence, despite strong growth in earlier years, the recent trend reveals a marked weakening in market valuation.
Earnings per Share (EPS)
EPS displayed a steady and consistent upward trajectory throughout the entire period. Starting at $2.49 in Q1 2019, EPS increased progressively to reach $5.87 by Q3 2023. This continuous improvement indicates sustained profitability growth, with no evident periods of decline or stagnation.
Price-to-Earnings (P/E) Ratio
The P/E ratio fluctuated significantly over time. It initially rose from 80.92 in Q1 2019 to a high of 173.00 in Q3 2021, reflecting increasing market optimism or elevated share price valuations relative to earnings. Subsequently, the P/E ratio declined notably to 27.69 by Q3 2023, paralleling the decrease in share price and suggesting a market reassessment of the company’s valuation relative to its earnings. This pattern indicates a transition from high market exuberance to a more moderate valuation level.
Overall Insights
The company demonstrated strong and continuous earnings growth, as evidenced by the steadily increasing EPS. Despite this, the share price experienced both significant growth and a sharp correction, ultimately declining substantially after peaking in late 2021. The P/E ratio trends suggest that market investors initially priced the stock with high growth expectations, which moderated substantially in recent periods. The recent lower P/E ratio combined with rising EPS may point to a potentially more attractive valuation, albeit in the context of share price weakness.

Price to Operating Profit (P/OP)

Paycom Software Inc., historical P/OP calculation (quarterly data)

Microsoft Excel
Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
No. shares of common stock outstanding1 57,700,820 57,949,090 57,873,095 57,871,962 57,866,465 57,865,148 58,041,860 58,014,548 57,996,615 57,917,371 57,792,986 57,739,986 57,631,041 57,603,897 57,433,079 57,661,188 57,657,405 57,651,234 57,510,640
Selected Financial Data (US$)
Operating income (in thousands) 96,901 87,266 160,432 105,834 74,265 72,313 126,267 68,626 43,305 47,090 94,546 36,247 34,036 26,576 89,264 60,294 50,556 52,886 62,488
Operating profit per share2 7.81 7.38 7.13 6.54 5.90 5.37 4.92 4.37 3.81 3.66 3.31 3.22 3.65 3.94 4.41 3.92 3.63 3.38 3.22
Share price1, 3 162.66 296.95 279.99 307.45 326.33 360.77 301.05 327.72 512.00 457.27 327.15 401.55 373.26 298.66 261.02 303.29 211.53 237.88 201.47
Valuation Ratio
P/OP ratio4 20.84 40.22 39.25 46.99 55.30 67.23 61.25 74.98 134.25 124.97 98.78 124.57 102.35 75.89 59.25 77.30 58.26 70.32 62.57

Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Data adjusted for splits and stock dividends.

2 Q3 2023 Calculation
Operating profit per share = (Operating incomeQ3 2023 + Operating incomeQ2 2023 + Operating incomeQ1 2023 + Operating incomeQ4 2022) ÷ No. shares of common stock outstanding
= (96,901,000 + 87,266,000 + 160,432,000 + 105,834,000) ÷ 57,700,820 = 7.81

3 Closing price as at the filing date of Paycom Software Inc. Quarterly or Annual Report.

4 Q3 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 162.66 ÷ 7.81 = 20.84

Share Price Trend
The share price exhibited volatility across the observed quarters. Initially, it rose from approximately $201 in early 2019 to a peak exceeding $500 in late 2021. Following this high, a general downward trend was noted, with the price falling to around $163 by the third quarter of 2023. This decline indicates a significant correction or market adjustment after the peak period.
Operating Profit Per Share (OPPS)
The operating profit per share consistently increased throughout the entire period. Starting at about $3.22 in Q1 2019, it escalated steadily to reach $7.81 by Q3 2023. This steady growth signifies operational improvements and enhanced profitability on a per-share basis over time, reflecting effective cost control or revenue growth.
Price-to-Operating Profit Ratio (P/OP)
The price-to-operating profit ratio showed considerable fluctuations. It was relatively high during the middle quarters, particularly peaking above 130 in late 2021, indicating elevated market valuations relative to operating profit. Subsequently, it declined markedly to about 20.84 by Q3 2023, a reflection of the share price decrease outpacing the growth in operating profit per share. This reduction in the ratio suggests that shares became more reasonably valued relative to earnings or that market sentiment toward the stock tempered over time.
Overall Observations
The company demonstrated robust and continuous growth in operating profitability per share, signaling strong fundamentals. However, the share price experienced significant volatility, peaking in late 2021 before a substantial decline. The P/OP ratio near the end of the period was much lower than in earlier years, indicating a possible market reassessment of growth prospects or risk. Investors assessing valuation must consider this dynamic between rising earnings and fluctuating share price levels.

Price to Sales (P/S)

Paycom Software Inc., historical P/S calculation (quarterly data)

Microsoft Excel
Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
No. shares of common stock outstanding1 57,700,820 57,949,090 57,873,095 57,871,962 57,866,465 57,865,148 58,041,860 58,014,548 57,996,615 57,917,371 57,792,986 57,739,986 57,631,041 57,603,897 57,433,079 57,661,188 57,657,405 57,651,234 57,510,640
Selected Financial Data (US$)
Revenues (in thousands) 406,303 401,139 451,637 370,608 334,167 316,924 353,519 284,986 256,194 242,146 272,198 220,947 196,532 181,587 242,368 193,409 175,006 169,313 199,943
Sales per share2 28.24 26.88 25.46 23.76 22.29 20.94 19.59 18.19 17.10 16.09 15.08 14.57 14.12 13.76 13.58 12.79 12.05 11.32 10.65
Share price1, 3 162.66 296.95 279.99 307.45 326.33 360.77 301.05 327.72 512.00 457.27 327.15 401.55 373.26 298.66 261.02 303.29 211.53 237.88 201.47
Valuation Ratio
P/S ratio4 5.76 11.05 11.00 12.94 14.64 17.23 15.37 18.01 29.95 28.42 21.70 27.55 26.43 21.71 19.22 23.71 17.56 21.01 18.92

Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Data adjusted for splits and stock dividends.

2 Q3 2023 Calculation
Sales per share = (RevenuesQ3 2023 + RevenuesQ2 2023 + RevenuesQ1 2023 + RevenuesQ4 2022) ÷ No. shares of common stock outstanding
= (406,303,000 + 401,139,000 + 451,637,000 + 370,608,000) ÷ 57,700,820 = 28.24

3 Closing price as at the filing date of Paycom Software Inc. Quarterly or Annual Report.

4 Q3 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 162.66 ÷ 28.24 = 5.76

Share Price Trends
The share price demonstrates considerable volatility over the analyzed periods. Starting at $201.47 in the first quarter of 2019, it experienced fluctuations with a notable peak at $512.00 in the third quarter of 2021. Following this peak, the share price declined substantially and ended at $162.66 in the third quarter of 2023, indicating a significant reduction from its high point and a downward trend in recent quarters.
Sales Per Share Evolution
Sales per share showed a consistent and steady upward trend across all quarters. Beginning at $10.65 in the first quarter of 2019, sales per share increased incrementally each quarter, reaching $28.24 by the third quarter of 2023. This steady growth suggests sustained revenue expansion on a per-share basis throughout the period under review.
Price-to-Sales (P/S) Ratio Analysis
The P/S ratio exhibited notable variability throughout the timeline. Initially high at 18.92 in early 2019, the ratio fluctuated with peaks and troughs aligned in part with share price volatility. For instance, it reached a maximum of 29.95 in the third quarter of 2021, coinciding with the peak share price. Following this peak, the ratio generally declined, falling to 5.76 by the third quarter of 2023. This reduction reflects the combined effect of declining share prices and increasing sales per share, indicating that the market valuation relative to sales has contracted significantly in the most recent periods.
Overall Insights
The data reveals a company experiencing strong revenue growth as evidenced by the steady increase in sales per share. However, this positive underlying performance contrasts with marked share price volatility and a sharp decrease in market valuation multiples, particularly in the latest quarters. The pronounced drop in the price-to-sales ratio suggests a market reassessment possibly driven by broader market conditions, company-specific risks, or valuation corrections. This divergence signals that despite robust sales growth, investor sentiment and market valuation have weakened significantly over the analyzed period.

Price to Book Value (P/BV)

Paycom Software Inc., historical P/BV calculation (quarterly data)

Microsoft Excel
Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
No. shares of common stock outstanding1 57,700,820 57,949,090 57,873,095 57,871,962 57,866,465 57,865,148 58,041,860 58,014,548 57,996,615 57,917,371 57,792,986 57,739,986 57,631,041 57,603,897 57,433,079 57,661,188 57,657,405 57,651,234 57,510,640
Selected Financial Data (US$)
Stockholders’ equity (in thousands) 1,421,309 1,406,685 1,334,471 1,182,607 1,076,380 994,139 1,009,020 893,714 825,341 792,256 745,476 655,643 632,399 585,853 599,788 526,628 474,898 434,762 398,553
Book value per share (BVPS)2 24.63 24.27 23.06 20.43 18.60 17.18 17.38 15.40 14.23 13.68 12.90 11.36 10.97 10.17 10.44 9.13 8.24 7.54 6.93
Share price1, 3 162.66 296.95 279.99 307.45 326.33 360.77 301.05 327.72 512.00 457.27 327.15 401.55 373.26 298.66 261.02 303.29 211.53 237.88 201.47
Valuation Ratio
P/BV ratio4 6.60 12.23 12.14 15.05 17.54 21.00 17.32 21.27 35.98 33.43 25.36 35.36 34.02 29.37 24.99 33.21 25.68 31.54 29.07

Based on: 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

1 Data adjusted for splits and stock dividends.

2 Q3 2023 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 1,421,309,000 ÷ 57,700,820 = 24.63

3 Closing price as at the filing date of Paycom Software Inc. Quarterly or Annual Report.

4 Q3 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 162.66 ÷ 24.63 = 6.60

Share Price Trends
The share price exhibited considerable volatility over the observed periods. Starting at $201.47 in March 2019, it experienced an overall upward trend reaching a peak of $512 in September 2021. After this apex, the share price generally declined, falling to $162.66 by September 2023. This pattern indicates a strong bullish phase through 2021 followed by a sustained bearish phase.
Book Value per Share (BVPS) Trends
The book value per share demonstrated a consistent upward trend throughout the periods under review. Beginning at $6.93 in March 2019, it steadily increased to $24.63 by September 2023. This consistent growth suggests a strengthening of the company's net asset base over time, reflecting accumulated retained earnings or other equity additions.
Price-to-Book Value Ratio (P/BV) Trends
The price-to-book value ratio showed marked fluctuations over the time frame. Initially, in March 2019, the ratio was relatively high at 29.07, peaking at 35.98 in September 2021. After peaking, it declined significantly to 6.6 by September 2023. Despite the steady increase in BVPS, the decreasing P/BV ratio after 2021 signals a lower market valuation relative to the company's book value, consistent with the observed decline in share price.
Overall Observations
There is a clear divergence between the company’s improving book value per share and the performance of its share price from late 2021 onwards. The rising BVPS indicates strengthening fundamentals in terms of net assets, while the declining share price and P/BV ratio in more recent periods suggest diminished investor confidence or broader market pressures adversely influencing market valuation.