
Paycom Software (PAYC) Stock Forecast & Price Target
Paycom Software (PAYC) Analyst Ratings
Bulls say
Paycom Software has demonstrated impressive growth, as evidenced by a compound annual growth rate (CAGR) of 16% in client count from 12.8 thousand in 2014 to 37.5 thousand in 2024. The company has successfully expanded its offerings by adding new clients and cross-selling additional modules, which contributed to strong performance during 2021 and 2022. Additionally, the rise in interest rates has provided a further boost to its revenue generation, positioning Paycom favorably within the human capital management sector.
Bears say
Paycom Software is projected to experience a decline in New Annual Recurring Revenue (ARR) by 15%, despite achieving a year-over-year revenue increase of 11% in its upcoming quarter, indicating potential underlying weaknesses in growth momentum. Additionally, the company's gross margin is expected to be adversely affected by depreciation related to a $130 million investment in GPUs, which may result in lower margins than previously anticipated. Moreover, a concerning trend in customer retention rates, which fell from 94% in 2021 to 90% in 2023, highlights increasing competitive pressures and challenges within the company's growth strategy.
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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