
Paycom Software (PAYC) Stock Forecast & Price Target
Paycom Software (PAYC) Analyst Ratings
Bulls say
Paycom Software has demonstrated significant growth, with its client count increasing from 12,800 in 2014 to over 37,500 in 2024, reflecting a compound annual growth rate (CAGR) of 16%. The company has benefitted from rising interest rates, which has positively influenced its revenue, primarily generated through subscription sales for its human capital management platform. Additionally, while capital expenditures have increased due to strategic investments in operational enhancements, the company remains well-positioned for continued growth within the midsize business sector in the United States.
Bears say
Paycom Software is projected to experience a decline in New Annual Recurring Revenue (ARR) by 15%, alongside an expectation of 11% year-over-year growth in Recurring and Other revenue, which translates to approximately $516 million for the fourth quarter of fiscal 2025. The company is also facing pressure on its gross margins due to the depreciation of $130 million in GPUs, potentially resulting in margins lower than current consensus estimates. Additionally, customer retention has shown a troubling downward trend, falling from 94% in 2021 to 90% in 2023, driven by competition and challenges associated with the rollout of new offerings.
This aggregate rating is based on analysts' research of Paycom Software and is not a guaranteed prediction by Public.com or investment advice.
Paycom Software (PAYC) Analyst Forecast & Price Prediction
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