In the last three months, 5 analysts have published ratings on Paycom Software (NYSE:PAYC), offering a diverse range of perspectives from bullish to bearish.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 1 | 3 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 1 | 3 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
Analysts have recently evaluated Paycom Software and provided 12-month price targets. The average target is $263.6, accompanied by a high estimate of $290.00 and a low estimate of $235.00. This upward trend is evident, with the current average reflecting a 1.85% increase from the previous average price target of $258.80.
Deciphering Analyst Ratings: An In-Depth Analysis
In examining recent analyst actions, we gain insights into how financial experts perceive Paycom Software. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Kevin Mcveigh | UBS | Lowers | Buy | $285.00 | $310.00 |
| 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 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Paycom Software. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Paycom Software compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Paycom Software's stock. This comparison reveals trends in analysts' expectations over time.
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Paycom Software's market standing. Stay informed and make data-driven decisions with our Ratings Table.
Stay up to date on Paycom Software analyst ratings.
About Paycom Software
Founded in 1998, Paycom 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.
Financial Milestones: Paycom Software's Journey
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
Revenue Growth: Over the 3M period, Paycom Software showcased positive performance, achieving a revenue growth rate of 10.54% as of 30 June, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.
Net Margin: Paycom Software's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 18.51%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Paycom Software's ROE excels beyond industry benchmarks, reaching 5.09%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Paycom Software's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.08%, the company showcases efficient use of assets and strong financial health.
Debt Management: Paycom Software's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.05.
Analyst Ratings: What Are They?
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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