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Here's How Much a $1000 Investment in Paycom Software Made 10 Years Ago Would Be Worth Today
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Paycom Software (PAYC - Free Report) ten years ago? It may not have been easy to hold on to PAYC for all that time, but if you did, how much would your investment be worth today?
Paycom Software's Business In-Depth
With that in mind, let's take a look at Paycom Software's main business drivers.
Headquartered in Oklahoma City, Paycom Software, Inc. is a provider of cloud-based human capital management (HCM) software as a service solution for integrated software for both employee records and talent management processes.
Founded in 1998, the company offers analytics that manages the complete employment life cycle from recruitment to retirement.
Paycom serves nearly 36,561 clients or nearly 19,081 customers based on Parent Company Grouping. Its human resource services include retirement services administration, workers’ compensation administration, employee benefit solutions, professional employer organization and other administrative services for businesses.
Paycom’s HCM solution offers a full suite of applications that generally falls within the following categories, namely talent acquisition, time and labor management, payroll, talent management and HR management.
Its HCM software streamlines and automates many of the day-to-day record-keeping processes and provides a framework for HR staff to manage benefits administration and payroll, map out succession planning and document such things as personnel actions and compliance with industry and/or government regulations. The cloud-based HCM reduces the administrative burden on employers and increases employee productivity.
In 2023, Paycom reported revenues of $1.69 billion, representing growth of 23% year over year. Recurring revenues of $1.67 billion grew 23% from the prior year, and constituted 98.3% of total revenues.
Paycom talent acquisition and talent management applications compete primarily with Cornerstone OnDemand, Oracle, SAP and Workday. Its payroll applications including payroll processing rival primarily with Automatic Data Processing, Ceridian, Paychex, Paylocity and The Ultimate Software. Its HR management applications contend mainly with ADP, Ceridian, Oracle, Paychex, Paylocity, SAP and Workday. The company’s time and labor management applications compete primarily with ADP, Ceridian, Kronos, Paylocity and The Ultimate Software Group.
As of Dec 31, 2023, the company had 7,308 employees across the United States.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Paycom Software, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in July 2014 would be worth $12,036.24, or a 1,103.62% gain, as of July 16, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 185.37% and the price of gold increased 73.81% over the same time frame in comparison.
Analysts are forecasting more upside for PAYC too.
Paycom’s back-to-back quarters of strong financial performancereflect continued growth despite disruptions caused by macroeconomic headwinds. Its revenues increased due to new client additions and a continued focus on cross-selling to existing clients. Its differentiated employee strategy, measurement capabilities and comprehensive product offerings are helping it win new customers. Its solutions like Ask Here and Manager on-the-Go, focusing on employee usage and efficiency, are tailwinds. Our estimates suggest that Paycom’s sales are likely to witness a CAGR of 11.3% between 2024 and 2026. However, its near-term results are likely to be affected by headcount reductions across its client base due to an uncertain macroeconomic environment. Also, increased sales and marketing expenses might hurt profitability in the near term.
Over the past four weeks, shares have rallied 9.25%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Paycom Software Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Paycom Software (PAYC - Free Report) ten years ago? It may not have been easy to hold on to PAYC for all that time, but if you did, how much would your investment be worth today?
Paycom Software's Business In-Depth
With that in mind, let's take a look at Paycom Software's main business drivers.
Headquartered in Oklahoma City, Paycom Software, Inc. is a provider of cloud-based human capital management (HCM) software as a service solution for integrated software for both employee records and talent management processes.
Founded in 1998, the company offers analytics that manages the complete employment life cycle from recruitment to retirement.
Paycom serves nearly 36,561 clients or nearly 19,081 customers based on Parent Company Grouping. Its human resource services include retirement services administration, workers’ compensation administration, employee benefit solutions, professional employer organization and other administrative services for businesses.
Paycom’s HCM solution offers a full suite of applications that generally falls within the following categories, namely talent acquisition, time and labor management, payroll, talent management and HR management.
Its HCM software streamlines and automates many of the day-to-day record-keeping processes and provides a framework for HR staff to manage benefits administration and payroll, map out succession planning and document such things as personnel actions and compliance with industry and/or government regulations. The cloud-based HCM reduces the administrative burden on employers and increases employee productivity.
In 2023, Paycom reported revenues of $1.69 billion, representing growth of 23% year over year. Recurring revenues of $1.67 billion grew 23% from the prior year, and constituted 98.3% of total revenues.
Paycom talent acquisition and talent management applications compete primarily with Cornerstone OnDemand, Oracle, SAP and Workday. Its payroll applications including payroll processing rival primarily with Automatic Data Processing, Ceridian, Paychex, Paylocity and The Ultimate Software. Its HR management applications contend mainly with ADP, Ceridian, Oracle, Paychex, Paylocity, SAP and Workday. The company’s time and labor management applications compete primarily with ADP, Ceridian, Kronos, Paylocity and The Ultimate Software Group.
As of Dec 31, 2023, the company had 7,308 employees across the United States.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Paycom Software, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in July 2014 would be worth $12,036.24, or a 1,103.62% gain, as of July 16, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 185.37% and the price of gold increased 73.81% over the same time frame in comparison.
Analysts are forecasting more upside for PAYC too.
Paycom’s back-to-back quarters of strong financial performancereflect continued growth despite disruptions caused by macroeconomic headwinds. Its revenues increased due to new client additions and a continued focus on cross-selling to existing clients. Its differentiated employee strategy, measurement capabilities and comprehensive product offerings are helping it win new customers. Its solutions like Ask Here and Manager on-the-Go, focusing on employee usage and efficiency, are tailwinds. Our estimates suggest that Paycom’s sales are likely to witness a CAGR of 11.3% between 2024 and 2026. However, its near-term results are likely to be affected by headcount reductions across its client base due to an uncertain macroeconomic environment. Also, increased sales and marketing expenses might hurt profitability in the near term.
Over the past four weeks, shares have rallied 9.25%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.