Exploring the Growth Potential of NYSE:PAYC as It Nears a Breakout.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether PAYCOM SOFTWARE INC (NYSE:PAYC) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but PAYCOM SOFTWARE INC has surfaced on our radar for growth with base formation, warranting further examination.

How We Gauge Growth for NYSE:PAYC

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:PAYC has earned a 8 for growth:

• PAYC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.82%, which is quite impressive.
• The Earnings Per Share has been growing by 36.29% on average over the past years. This is a very strong growth
• The Revenue has grown by 26.36% in the past year. This is a very strong growth!
• Measured over the past years, PAYC shows a very strong growth in Revenue. The Revenue has been growing by 26.00% on average per year.
• PAYC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.93% yearly.
• The Revenue is expected to grow by 14.21% on average over the next years. This is quite good.

Health Assessment of NYSE:PAYC

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:PAYC scores a 8 out of 10:

• An Altman-Z score of 4.41 indicates that PAYC is not in any danger for bankruptcy at the moment.
• PAYC has a Altman-Z score of 4.41. This is in the better half of the industry: PAYC outperforms 80.00% of its industry peers.
• PAYC has a debt to FCF ratio of 0.10. This is a very positive value and a sign of high solvency as it would only need 0.10 years to pay back of all of its debts.
• PAYC's Debt to FCF ratio of 0.10 is amongst the best of the industry. PAYC outperforms 81.25% of its industry peers.
• PAYC has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
• With a decent Debt to Equity ratio value of 0.02, PAYC is doing good in the industry, outperforming 70.00% of the companies in the same industry.
• PAYC does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

What does the Profitability looks like for NYSE:PAYC

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:PAYC has achieved a 8:

• PAYC has a Return On Assets of 8.79%. This is amongst the best in the industry. PAYC outperforms 82.50% of its industry peers.
• With an excellent Return On Equity value of 23.85%, PAYC belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
• PAYC has a better Return On Invested Capital (18.76%) than 83.75% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for PAYC is above the industry average of 11.95%.
• The last Return On Invested Capital (18.76%) for PAYC is above the 3 year average (16.48%), which is a sign of increasing profitability.
• PAYC's Profit Margin of 20.80% is amongst the best of the industry. PAYC outperforms 92.50% of its industry peers.
• The Operating Margin of PAYC (27.64%) is better than 92.50% of its industry peers.
• The Gross Margin of PAYC (84.01%) is better than 93.75% of its industry peers.

How do we evaluate the setup for NYSE:PAYC?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:PAYC currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

PAYC has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 206.73. Right above this resistance zone may be a good entry point.

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For an up to date full fundamental analysis you can check the fundamental report of PAYC

Check the latest full technical report of PAYC for a complete technical analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.