Topic: How To Invest

Q: Hello. I would appreciate your opinion on Paycom Software (PAYC). Thank you.

Article Excerpt

A: Paycom Software, $196.84, symbol PAYC on New York (Shares outstanding: 58.5 billion; Market cap: $12.0 billion; www.paycom.com), is a provider of comprehensive, cloud-based payroll and human resource management software. Its products cover the entire employee lifecycle, from hiring to retirement. The company has sales offices in 37 of the 50 largest metropolitan areas in the U.S. Paycom first sold shares to the public in April of 2014 at $15 each. In the three months ended June 30, 2019, revenue jumped 31.5%, to $169.3 million from $128.8 million a year earlier. The company made $0.85 a share, up 37.1% from $0.62. The strong sales and earnings were mainly the result of new clients. They further add to Paycom’s prospects for higher recurring revenue. It also continues to expand its market share thanks to the focus on customer service (a single-point-of-contact and quick-response model), its easy-to-use exclusive software, and its new sales offices. In addition, the company spends a high 10% of its sales…