Latest news with #Paycom
Yahoo
12 hours ago
- Business
- Yahoo
Paycom Software (NYSE:PAYC) Could Be Struggling To Allocate Capital
If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for? Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. Having said that, while the ROCE is currently high for Paycom Software (NYSE:PAYC), we aren't jumping out of our chairs because returns are decreasing. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. The formula for this calculation on Paycom Software is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.20 = US$416m ÷ (US$4.6b - US$2.5b) (Based on the trailing twelve months to March 2025). Thus, Paycom Software has an ROCE of 20%. In absolute terms that's a great return and it's even better than the Professional Services industry average of 14%. See our latest analysis for Paycom Software In the above chart we have measured Paycom Software's prior ROCE against its prior performance, but the future is arguably more important. If you'd like, you can check out the forecasts from the analysts covering Paycom Software for free. In terms of Paycom Software's historical ROCE movements, the trend isn't fantastic. While it's comforting that the ROCE is high, five years ago it was 31%. However it looks like Paycom Software might be reinvesting for long term growth because while capital employed has increased, the company's sales haven't changed much in the last 12 months. It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line. On a related note, Paycom Software has decreased its current liabilities to 54% of total assets. That could partly explain why the ROCE has dropped. Effectively this means their suppliers or short-term creditors are funding less of the business, which reduces some elements of risk. Some would claim this reduces the business' efficiency at generating ROCE since it is now funding more of the operations with its own money. Either way, they're still at a pretty high level, so we'd like to see them fall further if possible. Bringing it all together, while we're somewhat encouraged by Paycom Software's reinvestment in its own business, we're aware that returns are shrinking. Since the stock has declined 20% over the last five years, investors may not be too optimistic on this trend improving either. On the whole, we aren't too inspired by the underlying trends and we think there may be better chances of finding a multi-bagger elsewhere. One more thing, we've spotted 1 warning sign facing Paycom Software that you might find interesting. If you'd like to see other companies earning high returns, check out our free list of companies earning high returns with solid balance sheets here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
USA Today
3 days ago
- Sport
- USA Today
After NBA Finals berth, Mark Daigneault reflects on relationship with Sam Presti
After NBA Finals berth, Mark Daigneault reflects on relationship with Sam Presti The Paycom postgame scene was a little different than usual. Instead of fans filing out, they stayed put. The Oklahoma City Thunder let the final seconds tick off to finalize their 124-94 Game 5 win over the Minnesota Timberwolves to punch their ticket to the 2025 NBA Finals. As ESPN rolled out the red carpet and presented the Magic Johnson Western Conference Finals MVP trophy to Shai Gilgeous-Alexander, the OKC trio of Clay Bennett, Sam Presti and Mark Daigneault grouped together as the team donned out in shirts and hats. The ownership-GM-coach vein might be the most critical part of an NBA franchise. Not being on the same page at any level will eventually create chaos that boils over to the on-court product. That's why the Thunder's synergy has resulted in one of the winningest franchises since they relocated in 2008. Presti beats Daigneault in tenure length with the franchise, but the two have been tied at the hip for years. The latter was handpicked and turned into the OKC GM's personal coaching development project. From the G League's OKC Blue coach to the NBA Finals, safe to say the gamble paid off. After Presti and Daigneault reached the pinnacle of their era, the OKC coach was asked about his long journey with the GM. He kept the self-reflection minimal as the Thunder still have the NBA Finals to play for but praised the front office guru for the culture built. "We're in it every day. There's not a lot of reflection going on in any part. I'm incredibly grateful to him. As we all should be. Every single person that's here. The day before they got here, he made the decision to bring them here. It's unbelievable," Daigneault said about Presti. "We all get to benefit from this environment that allows us to do our best work. He's been the architect of that very quietly over time. Has assembled an unbelievable group of people, starting with our locker room. He prioritizes the type of person we bring in." The Thunder are one of the most successful NBA franchises. Sans two rebuilding years, they've always been in the title picture. The cast of characters might've changed over time, but the Gilgeous-Alexander era has already reached the same heights as the Kevin Durant and Russell Westbrook era. It's now about climbing that final rung on the NBA ladder with a championship. "He deserves. He works tirelessly. No one is more determined. No one is more relentless in their day-to-day," Daigneault said about Presti. "He'll never make it about him but obviously he's a huge part of this. He and Clay."
Business Wire
5 days ago
- Business
- Business Wire
Paycom's AI-powered Ask Here enhances employee inquiry experience
OKLAHOMA CITY--(BUSINESS WIRE)-- Paycom Software, Inc. (NYSE: PAYC) ('Paycom'), a leading provider of comprehensive, cloud-based human capital management software, has enhanced its Ask Here tool, which uses AI to produce answers to employee questions, reducing response times and administrative burdens for organizations. 'Paycom is committed to simplifying administrative tasks for our clients and delivering a superior experience for their employees,' said Rachael Gannon, executive vice president of product and development. 'Our latest enhancement to Ask Here delivers automated answers to employee questions, which creates significant efficiencies company wide.' A centralized hub for all employee questions, Ask Here powered by AI search instantly answers inquiries by scanning preloaded company policies, documentation and saved responses. Topics can also be preloaded based on common employee questions across departments like accounting, benefits, maintenance, security, community relations and more. For more complex or sensitive inquiries, the software routes the inquiry to the appropriate person in the organization. With the AI-powered search, businesses can expect benefits such as: faster response times to employee questions easier management of mass employee inquiries standardization of company responses easy access to Ask Here through Employee Self-Service ® reduced employee frustration in finding the right person to ask a centralized communication command center 'After enabling this feature, we found it saved valuable time and reduced decision fatigue for our leaders to not have to repeatedly answer many of the common questions we receive daily,' said an HR manager of a multi-location healthcare organization. 'It even closes out the inquiry if their issue has been resolved, which is too cool! This is a total game changer for us.' The Ask Here enhancement also provides businesses with deeper insights into inquiry trends and important topics for employees. This enhancement further addresses a common challenge among employees. A recent Paycom general population survey of 2,200 U.S.-based full-time employees revealed employees are most likely to need an urgent response from human resources about their paycheck (56%), benefits (54%), time-off requests (32%) and other key issues like performance reviews and investments. Ask Here's AI-powered search is part of Paycom's commitment to offering full-solution automation in a single software. To learn more, visit For over 25 years, Paycom Software, Inc. (NYSE: PAYC) has simplified business and employees' lives through easy-to-use HR and payroll technology to empower transparency through direct access to their data. From onboarding and benefits enrollment to talent management and more, Paycom's employee-first technology leverages full-solution automation to streamline processes, drive efficiencies and give employees power over their own HR information, all in a single app. Paycom's single database combines all HR and payroll data in one place, providing a seamless and accurate experience without the errors and inefficiencies associated with integrating multiple systems. Recognized globally for its technology and workplace culture, Paycom serves businesses of all sizes in the U.S. and internationally.
Yahoo
25-05-2025
- Business
- Yahoo
Jefferies Increased the Price Objective of Paycom Software, Inc. (PAYC)
Jefferies has maintained its Hold rating on Paycom Software, Inc. (NYSE:PAYC) but increased its price target from $130 to $155. A close-up of two software engineers typing away at laptops in a modern, well-lit office. This modification reflects an updated assessment of Paycom Software, Inc. (NYSE:PAYC)'s market position and potential performance and is part of the firm's recent examination of software industry models. Paycom Software, Inc. (NYSE:PAYC) reported $531 million in Q1 2025, a 6% year-over-year increase in total revenue. Its Net Promoter Score grew by 16 points as a result of an improvement in customer satisfaction. According to a Forrester survey, automation tools like GONE yielded a high return on investment of up to 800%. Moreover, the firm showed excellent sales execution by onboarding a group of restaurants with 2,500 employees. Paycom Software, Inc. (NYSE:PAYC) has no debt and $521 million in cash, showing a strong financial situation. Nonetheless, obstacles are reflected in a 10% YoY reduction in interest on funds maintained for clients and a forecast 12% full-year drop. Furthermore, the company anticipates lower free cash flow as a result of continued AI investments. Growth in the forms industry was impacted by seasonality, and macroeconomic factors like tariffs present further difficulties. While we acknowledge the potential of PAYC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PAYC and that has 100x upside potential, check out our report about this cheapest AI stock READ NEXT: and . Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
24-05-2025
- Business
- Business Insider
Jefferies Sticks to Their Hold Rating for Paycom (PAYC)
Jefferies analyst Samad Samana maintained a Hold rating on Paycom (PAYC – Research Report) today and set a price target of $250.00. The company's shares closed today at $257.90. Confident Investing Starts Here: According to TipRanks, Samana is a 4-star analyst with an average return of 4.6% and a 49.64% success rate. Samana covers the Technology sector, focusing on stocks such as HubSpot, ServiceNow, and Shopify. In addition to Jefferies, Paycom also received a Hold from Barclays's Raimo Lenschow in a report issued on May 8. However, on May 12, KeyBanc maintained a Buy rating on Paycom (NYSE: PAYC). Based on Paycom's latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $530.5 million and a net profit of $139.4 million. In comparison, last year the company earned a revenue of $499.88 million and had a net profit of $247.19 million Based on the recent corporate insider activity of 177 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PAYC in relation to earlier this year. Most recently, in February 2025, Watts J C, a Director at PAYC sold 500.00 shares for a total of $109,105.00.
