Demystifying Paycom Software: Insights From 5 Analyst Reviews - Paycom Software (NYSE:PAYC)

In the latest quarter, 5 analysts provided ratings for Paycom Software (NYSE:PAYC), showcasing a mix of bullish and bearish perspectives.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

	Somewhat Bullish	Indifferent
Total Ratings	2	3
Last 30D	1	3
1M Ago	0	0
2M Ago	0	0
3M Ago	1	0

Insights from analysts' 12-month price targets are revealed, presenting an average target of $263.6, a high estimate of $290.00, and a low estimate of $235.00. Witnessing a positive shift, the current average has risen by 5.1% from the previous average price target of $250.80.

Decoding Analyst Ratings: A Detailed Look

The analysis of recent analyst actions sheds light on the perception of Paycom Software by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst	Analyst Firm	Action Taken	Rating	Current Price Target	Prior Price Target
Mark Murphy	JP Morgan	Raises	Neutral	$235.00	$215.00
Jason Celino	Keybanc	Raises	Overweight	$290.00	$285.00
Raimo Lenschow	Barclays	Raises	Equal-Weight	$250.00	$240.00
Daniel Jester	BMO Capital	Raises	Market Perform	$258.00	$244.00
Jason Celino	Keybanc	Raises	Overweight	$285.00	$270.00

Key Insights:

Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Paycom Software. This insight gives a snapshot of analysts' perspectives on the current state of the company.
Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Paycom Software compared to the broader market.
Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Paycom Software's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Paycom Software analyst ratings.

About Paycom Software

Founded in 1998, Paycom Software Inc is a human capital management software-as-a-service provider addressing customer requirements surrounding payroll, talent acquisition, talent management, HR management, as well as time and labor. The company primarily services midsize businesses within the United States, targeting businesses with 50-10,000 employees. The company primarily generates revenue through the sale of subscriptions providing access to its HCM platform. To a lesser extent, the company also generates revenue from implementation services provided to customers as well as interest income generated from customer funds. As of fiscal 2024, the company serviced slightly over 37,500 customers and stored data on over 7 million employees.

Key Indicators: Paycom Software's Financial Health

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: Paycom Software's revenue growth over a period of 3M has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 6.12%. 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: Paycom Software's net margin excels beyond industry benchmarks, reaching 26.28%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Paycom Software's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 8.47% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Paycom Software's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.67% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Paycom Software's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.05.

The Basics of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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PAYCPaycom Software Inc

$131.504.07%

Overview

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