
Paycom Software (PAYC) Stock Forecast & Price Target
Paycom Software (PAYC) Analyst Ratings
Bulls say
Paycom Software has demonstrated impressive growth, reflected in its client count increasing from 12,800 in 2014 to over 37,500 in 2024, yielding a compound annual growth rate (CAGR) of 16%. The company's strong performance in 2021 and 2022 was driven by the acquisition of new clients, cross-selling additional modules, and benefiting from rising interest rates. Furthermore, the increase in capital expenditures as a percentage of revenue from 7% to 13% suggests a strategic investment in technology to support future growth initiatives across their customer base.
Bears say
Paycom Software is projected to achieve 4Q25 recurring and other revenue of $516 million, reflecting an 11% year-over-year growth; however, new annual recurring revenue (ARR) is expected to decline by 15%. Furthermore, the company faces potential gross margin pressures attributed to depreciation from a $130 million investment in GPUs, which may lead to lower margin percentages than current consensus estimates. Additionally, a decline in customer retention from 94% in 2021 to 90% in 2023 raises concerns about the company's long-term growth prospects amidst competitive pressures.
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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