PAYCOM SOFTWARE INC (1PAYC.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1PAYC - US70432V1026 - Common Stock
143 EUR
-63.1 (-30.62%)
Overall 1PAYC gets a fundamental rating of 7 out of 10. We evaluated 1PAYC against 31 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 not valued too expensively and it also shows a decent growth rate. With these ratings, 1PAYC could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year 1PAYC was profitable.
1PAYC had a positive operating cash flow in the past year.
Each year in the past 5 years 1PAYC has been profitable.
In the past 5 years 1PAYC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.67%, 1PAYC belongs to the top of the industry, outperforming 84.85% of the companies in the same industry.
1PAYC has a Return On Equity of 26.51%. This is in the better half of the industry: 1PAYC outperforms 72.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.27%, 1PAYC belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1PAYC is significantly above the industry average of 10.37%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.67% | ||
| ROE | 26.51% | ||
| ROIC | 19.27% |
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
1PAYC has a better Profit Margin (22.64%) than 100.00% of its industry peers.
1PAYC's Profit Margin has improved in the last couple of years.
The Operating Margin of 1PAYC (27.91%) is better than 93.94% of its industry peers.
1PAYC's Operating Margin has improved in the last couple of years.
The Gross Margin of 1PAYC (82.95%) is better than 75.76% 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 | 27.91% | ||
| PM (TTM) | 22.64% | ||
| GM | 82.95% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1PAYC is creating value.
Compared to 1 year ago, 1PAYC has less shares outstanding
1PAYC has less shares outstanding than it did 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
An Altman-Z score of 3.94 indicates that 1PAYC is not in any danger for bankruptcy at the moment.
1PAYC's Altman-Z score of 3.94 is amongst the best of the industry. 1PAYC outperforms 87.88% of its industry peers.
1PAYC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.94 |
ROIC/WACC2.21
WACC8.7%
2.3 Liquidity
A Current Ratio of 1.22 indicates that 1PAYC should not have too much problems paying its short term obligations.
The Current ratio of 1PAYC (1.22) is better than 60.61% of its industry peers.
A Quick Ratio of 1.22 indicates that 1PAYC should not have too much problems paying its short term obligations.
The Quick ratio of 1PAYC (1.22) is better than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
1PAYC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.77%, which is quite good.
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.
The Revenue has grown by 9.72% in the past year. This is quite good.
The Revenue has been growing by 20.62% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)16.77%
EPS 3Y22.42%
EPS 5Y18.56%
EPS Q2Q%16.17%
Revenue 1Y (TTM)9.72%
Revenue growth 3Y21.29%
Revenue growth 5Y20.62%
Sales Q2Q%9.15%
3.2 Future
Based on estimates for the next years, 1PAYC will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.55% on average per year.
Based on estimates for the next years, 1PAYC will show a small growth in Revenue. The Revenue will grow by 7.21% on average per year.
EPS Next Y15.39%
EPS Next 2Y12.03%
EPS Next 3Y12.21%
EPS Next 5Y12.55%
Revenue Next Year9.54%
Revenue Next 2Y9.34%
Revenue Next 3Y9.63%
Revenue Next 5Y7.21%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.06, which indicates a rather expensive current valuation of 1PAYC.
Based on the Price/Earnings ratio, 1PAYC is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.15, 1PAYC is valued a bit cheaper.
1PAYC is valuated correctly with a Price/Forward Earnings ratio of 16.01.
Based on the Price/Forward Earnings ratio, 1PAYC is valued a bit cheaper than 60.61% of the companies in the same industry.
1PAYC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.06 | ||
| Fwd PE | 16.01 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1PAYC.
1PAYC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.76 | ||
| EV/EBITDA | 12.26 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 12.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.17
PEG (5Y)0.97
EPS Next 2Y12.03%
EPS Next 3Y12.21%
5. Dividend
5.1 Amount
With a yearly dividend of 0.94%, 1PAYC is not a good candidate for dividend investing.
1PAYC's Dividend Yield is slightly below the industry average, which is at 3.20.
With a Dividend Yield of 0.94, 1PAYC pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
1PAYC pays out 18.80% of its income as dividend. This is a sustainable payout ratio.
DP18.8%
EPS Next 2Y12.03%
EPS Next 3Y12.21%
BIT:1PAYC (11/10/2025, 7:00:00 PM)
143
-63.1 (-30.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners92.08%
Inst Owner ChangeN/A
Ins Owners5.28%
Ins Owner ChangeN/A
Market Cap8.05B
Revenue(TTM)2.00B
Net Income(TTM)453.17M
Analysts71.11
Price Target183.11 (28.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.94% |
Yearly Dividend1.31
Dividend Growth(5Y)N/A
DP18.8%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.38%
Min EPS beat(2)-2.45%
Max EPS beat(2)13.21%
EPS beat(4)3
Avg EPS beat(4)8.36%
Min EPS beat(4)-2.45%
Max EPS beat(4)15.6%
EPS beat(8)6
Avg EPS beat(8)5.55%
EPS beat(12)9
Avg EPS beat(12)5.7%
EPS beat(16)13
Avg EPS beat(16)5.7%
Revenue beat(2)1
Avg Revenue beat(2)-0.73%
Min Revenue beat(2)-1.9%
Max Revenue beat(2)0.45%
Revenue beat(4)2
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-1.9%
Max Revenue beat(4)0.69%
Revenue beat(8)3
Avg Revenue beat(8)-0.61%
Revenue beat(12)3
Avg Revenue beat(12)-0.88%
Revenue beat(16)7
Avg Revenue beat(16)-0.47%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-0.27%
EPS NY rev (1m)3.42%
EPS NY rev (3m)3.42%
Revenue NQ rev (1m)0.64%
Revenue NQ rev (3m)0.64%
Revenue NY rev (1m)0.87%
Revenue NY rev (3m)0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.06 | ||
| Fwd PE | 16.01 | ||
| P/S | 4.63 | ||
| P/FCF | 23.76 | ||
| P/OCF | 14.41 | ||
| P/B | 5.42 | ||
| P/tB | 5.73 | ||
| EV/EBITDA | 12.26 |
EPS(TTM)7.92
EY5.54%
EPS(NY)8.93
Fwd EY6.25%
FCF(TTM)6.02
FCFY4.21%
OCF(TTM)9.92
OCFY6.94%
SpS30.88
BVpS26.37
TBVpS24.94
PEG (NY)1.17
PEG (5Y)0.97
Graham Number68.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.67% | ||
| ROE | 26.51% | ||
| ROCE | 25.78% | ||
| ROIC | 19.27% | ||
| ROICexc | 23.3% | ||
| ROICexgc | 24.57% | ||
| OM | 27.91% | ||
| PM (TTM) | 22.64% | ||
| GM | 82.95% | ||
| FCFM | 19.49% |
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%
ROICexgc growth 3Y12.94%
ROICexgc 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-Score7
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 151.91% | ||
| Cap/Sales | 12.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.7% | ||
| Profit Quality | 86.07% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 3.94 |
F-Score7
WACC8.7%
ROIC/WACC2.21
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)16.77%
EPS 3Y22.42%
EPS 5Y18.56%
EPS Q2Q%16.17%
EPS Next Y15.39%
EPS Next 2Y12.03%
EPS Next 3Y12.21%
EPS Next 5Y12.55%
Revenue 1Y (TTM)9.72%
Revenue growth 3Y21.29%
Revenue growth 5Y20.62%
Sales Q2Q%9.15%
Revenue Next Year9.54%
Revenue Next 2Y9.34%
Revenue Next 3Y9.63%
Revenue Next 5Y7.21%
EBIT growth 1Y-5.75%
EBIT growth 3Y35.74%
EBIT growth 5Y22.9%
EBIT Next Year48.63%
EBIT Next 3Y22.25%
EBIT Next 5Y15.74%
FCF growth 1Y30.62%
FCF growth 3Y20.33%
FCF growth 5Y20.7%
OCF growth 1Y34.25%
OCF growth 3Y18.68%
OCF growth 5Y18.94%
PAYCOM SOFTWARE INC / 1PAYC.MI FAQ
What is the fundamental rating for 1PAYC stock?
ChartMill assigns a fundamental rating of 7 / 10 to 1PAYC.MI.
What is the valuation status for 1PAYC stock?
ChartMill assigns a valuation rating of 5 / 10 to PAYCOM SOFTWARE INC (1PAYC.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for PAYCOM SOFTWARE INC?
PAYCOM SOFTWARE INC (1PAYC.MI) has a profitability rating of 8 / 10.
What are the PE and PB ratios of PAYCOM SOFTWARE INC (1PAYC.MI) stock?
The Price/Earnings (PE) ratio for PAYCOM SOFTWARE INC (1PAYC.MI) is 18.06 and the Price/Book (PB) ratio is 5.42.
What is the earnings growth outlook for PAYCOM SOFTWARE INC?
The Earnings per Share (EPS) of PAYCOM SOFTWARE INC (1PAYC.MI) is expected to grow by 15.39% in the next year.