PAYC - Embedded Expectations Analysis - 2021 06 22
Paycom Software, Inc. (PAYC:USA) currently trades well above corporate averages relative to UAFRS-based (Uniform) earnings, with a 57.0x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may be concerned about their annual forms filing business, their hybrid model for sales teams, and the potential of BETISpecifically, management may have concerns about the strength of their annual forms filing business, the pace of sales office openings, and their overall value proposition to clients. Additionally, they may be exaggerating the impact of their products on the HR technology environment, the popularity of their background check and talent acquisition solutions, and the demand for and uniqueness of their BETI platform. Finally, they may have concerns about their workforce returning to the office full-time in September and their plans for a hybrid work model for their sales teams
Paycom Software is a provider of cloud-based human capital management (HCM) solution delivered as Software-as- a-Service. The company provides functionality and data analytics that businesses need to manage the complete employment lifecycle, from recruitment to retirement. The company's solution requires virtually no customization and is based on a core system of record maintained in a single database for various HCM functions, including talent acquisition, time and labor management, payroll, talent management and human resources management applications. The company's solution was developed in-house and is based on a single platform, there is no need to integrate, update or access various databases.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
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