PAYCOM SOFTWARE INC (1PAYC.MI) Stock Fundamental Analysis
BIT:1PAYC - Euronext Milan - US70432V1026 - Common Stock - Currency: EUR
1PAYC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 32 industry peers in the Professional Services industry. 1PAYC gets an excellent profitability rating and is at the same time showing great financial health properties. 1PAYC is valied quite expensively at the moment, while it does show a decent growth rate. This makes 1PAYC very considerable for quality investing!
1. Profitability
1.1 Basic Checks
1PAYC had positive earnings in the past year.
1PAYC had a positive operating cash flow in the past year.
1PAYC had positive earnings in each of the past 5 years.
1PAYC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1PAYC has a Return On Assets of 8.62%. This is in the better half of the industry: 1PAYC outperforms 75.00% of its industry peers.
1PAYC has a Return On Equity of 22.96%. This is in the better half of the industry: 1PAYC outperforms 75.00% of its industry peers.
The Return On Invested Capital of 1PAYC (19.08%) is better than 93.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1PAYC is significantly above the industry average of 11.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 22.96% | ||
| ROIC | 19.08% |
ROA(3y)7.97%
ROA(5y)7.1%
ROE(3y)27.27%
ROE(5y)25.12%
ROIC(3y)21.04%
ROIC(5y)18.84%
1.3 Margins
The Profit Margin of 1PAYC (20.60%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of 1PAYC has grown nicely.
1PAYC has a Operating Margin of 27.88%. This is amongst the best in the industry. 1PAYC outperforms 93.75% of its industry peers.
1PAYC's Operating Margin has improved in the last couple of years.
The Gross Margin of 1PAYC (82.20%) is better than 75.00% of its industry peers.
In the last couple of years the Gross Margin of 1PAYC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.88% | ||
| PM (TTM) | 20.6% | ||
| GM | 82.2% |
OM growth 3Y11.92%
OM growth 5Y1.9%
PM growth 3Y12.81%
PM growth 5Y1.73%
GM growth 3Y-0.97%
GM growth 5Y-0.69%
2. Health
2.1 Basic Checks
1PAYC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
1PAYC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1PAYC has been reduced compared to 5 years ago.
There is no outstanding debt for 1PAYC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
1PAYC has an Altman-Z score of 4.38. This indicates that 1PAYC is financially healthy and has little risk of bankruptcy at the moment.
1PAYC's Altman-Z score of 4.38 is amongst the best of the industry. 1PAYC outperforms 87.50% of its industry peers.
There is no outstanding debt for 1PAYC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.38 |
ROIC/WACC2.14
WACC8.91%
2.3 Liquidity
1PAYC has a Current Ratio of 1.20. This is a normal value and indicates that 1PAYC is financially healthy and should not expect problems in meeting its short term obligations.
1PAYC has a Current ratio of 1.20. This is comparable to the rest of the industry: 1PAYC outperforms 56.25% of its industry peers.
A Quick Ratio of 1.20 indicates that 1PAYC should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.20, 1PAYC is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.32% over the past year.
Measured over the past years, 1PAYC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.56% on average per year.
1PAYC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.87%.
Measured over the past years, 1PAYC shows a very strong growth in Revenue. The Revenue has been growing by 20.62% on average per year.
EPS 1Y (TTM)6.32%
EPS 3Y22.42%
EPS 5Y18.56%
EPS Q2Q%8.11%
Revenue 1Y (TTM)9.87%
Revenue growth 3Y21.29%
Revenue growth 5Y20.62%
Sales Q2Q%6.13%
3.2 Future
1PAYC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.40% yearly.
Based on estimates for the next years, 1PAYC will show a small growth in Revenue. The Revenue will grow by 7.06% on average per year.
EPS Next Y11.58%
EPS Next 2Y11.2%
EPS Next 3Y12.59%
EPS Next 5Y12.4%
Revenue Next Year8.6%
Revenue Next 2Y8.91%
Revenue Next 3Y9.54%
Revenue Next 5Y7.06%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
1PAYC is valuated quite expensively with a Price/Earnings ratio of 28.55.
Compared to the rest of the industry, the Price/Earnings ratio of 1PAYC is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.48, 1PAYC is valued at the same level.
A Price/Forward Earnings ratio of 23.66 indicates a rather expensive valuation of 1PAYC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1PAYC is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of 1PAYC to the average of the S&P500 Index (34.04), we can say 1PAYC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.55 | ||
| Fwd PE | 23.66 |
4.2 Price Multiples
65.63% of the companies in the same industry are cheaper than 1PAYC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 1PAYC is valued a bit more expensive than the industry average as 68.75% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.33 | ||
| EV/EBITDA | 18.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1PAYC has an outstanding profitability rating, which may justify a higher PE ratio.
1PAYC's earnings are expected to grow with 12.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.47
PEG (5Y)1.54
EPS Next 2Y11.2%
EPS Next 3Y12.59%
5. Dividend
5.1 Amount
1PAYC has a yearly dividend return of 0.65%, which is pretty low.
Compared to an average industry Dividend Yield of 2.89, 1PAYC is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.40, 1PAYC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
21.48% of the earnings are spent on dividend by 1PAYC. This is a low number and sustainable payout ratio.
DP21.48%
EPS Next 2Y11.2%
EPS Next 3Y12.59%
BIT:1PAYC (7/31/2025, 7:00:00 PM)
206.1
+14.6 (+7.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners92%
Inst Owner ChangeN/A
Ins Owners5.18%
Ins Owner ChangeN/A
Market Cap11.55B
Analysts69.6
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend1.29
Dividend Growth(5Y)N/A
DP21.48%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.34%
Min EPS beat(2)7.08%
Max EPS beat(2)15.6%
EPS beat(4)3
Avg EPS beat(4)5.95%
Min EPS beat(4)-0.71%
Max EPS beat(4)15.6%
EPS beat(8)6
Avg EPS beat(8)5.16%
EPS beat(12)10
Avg EPS beat(12)6.12%
EPS beat(16)13
Avg EPS beat(16)5.86%
Revenue beat(2)1
Avg Revenue beat(2)-0.26%
Min Revenue beat(2)-1.22%
Max Revenue beat(2)0.69%
Revenue beat(4)1
Avg Revenue beat(4)-0.78%
Min Revenue beat(4)-1.72%
Max Revenue beat(4)0.69%
Revenue beat(8)2
Avg Revenue beat(8)-0.97%
Revenue beat(12)4
Avg Revenue beat(12)-0.7%
Revenue beat(16)8
Avg Revenue beat(16)-0.21%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.55 | ||
| Fwd PE | 23.66 | ||
| P/S | 7.02 | ||
| P/FCF | 35.33 | ||
| P/OCF | 23.68 | ||
| P/B | 7.83 | ||
| P/tB | 8.3 | ||
| EV/EBITDA | 18.81 |
EPS(TTM)7.22
EY3.5%
EPS(NY)8.71
Fwd EY4.23%
FCF(TTM)5.83
FCFY2.83%
OCF(TTM)8.7
OCFY4.22%
SpS29.34
BVpS26.33
TBVpS24.84
PEG (NY)2.47
PEG (5Y)1.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 22.96% | ||
| ROCE | 25.53% | ||
| ROIC | 19.08% | ||
| ROICexc | 25.41% | ||
| ROICexgc | 27.09% | ||
| OM | 27.88% | ||
| PM (TTM) | 20.6% | ||
| GM | 82.2% | ||
| FCFM | 19.88% |
ROA(3y)7.97%
ROA(5y)7.1%
ROE(3y)27.27%
ROE(5y)25.12%
ROIC(3y)21.04%
ROIC(5y)18.84%
ROICexc(3y)26.79%
ROICexc(5y)23.85%
ROICexgc(3y)29.01%
ROICexgc(5y)25.99%
ROCE(3y)28.15%
ROCE(5y)25.21%
ROICexcg growth 3Y12.94%
ROICexcg growth 5Y1.1%
ROICexc growth 3Y15.14%
ROICexc growth 5Y1.63%
OM growth 3Y11.92%
OM growth 5Y1.9%
PM growth 3Y12.81%
PM growth 5Y1.73%
GM growth 3Y-0.97%
GM growth 5Y-0.69%
F-Score6
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 122.14% | ||
| Cap/Sales | 9.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.65% | ||
| Profit Quality | 96.52% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 4.38 |
F-Score6
WACC8.91%
ROIC/WACC2.14
Cap/Depr(3y)151.85%
Cap/Depr(5y)163.91%
Cap/Sales(3y)10.68%
Cap/Sales(5y)11.04%
Profit Quality(3y)77.58%
Profit Quality(5y)84.82%
High Growth Momentum
Growth
EPS 1Y (TTM)6.32%
EPS 3Y22.42%
EPS 5Y18.56%
EPS Q2Q%8.11%
EPS Next Y11.58%
EPS Next 2Y11.2%
EPS Next 3Y12.59%
EPS Next 5Y12.4%
Revenue 1Y (TTM)9.87%
Revenue growth 3Y21.29%
Revenue growth 5Y20.62%
Sales Q2Q%6.13%
Revenue Next Year8.6%
Revenue Next 2Y8.91%
Revenue Next 3Y9.54%
Revenue Next 5Y7.06%
EBIT growth 1Y-7.48%
EBIT growth 3Y35.74%
EBIT growth 5Y22.9%
EBIT Next Year44.32%
EBIT Next 3Y21.91%
EBIT Next 5Y15.57%
FCF growth 1Y51.53%
FCF growth 3Y20.33%
FCF growth 5Y20.7%
OCF growth 1Y44.1%
OCF growth 3Y18.68%
OCF growth 5Y18.94%