Shares in Paycom Software, Inc. show a positive technical chart pattern over the medium term. The timing to jump back on the rising trend seems good.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has poor fundamentals for a short-term investment strategy.
Strengths
● According to sales estimates from analysts polled by Standard & Poor's, the company is among the best with regard to growth.
● The group's activity appears highly profitable thanks to its outperforming net margins.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
● Historically, the company has been releasing figures that are above expectations.
● The tendency within the weekly time frame is positive above the technical support level at 284.37 USD
Weaknesses
● Based on current prices, the company has particularly high valuation levels.
● With an expected P/E ratio at 136.03 and 96.34 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● For the last few months, analysts have been revising downwards their earnings forecast.
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Paycom Software, Inc. specialises in the development and commercialisation of Cloud-based human resources management software. Net sales break down by activity as follows:
- sale of human resources management software (98.3%): software for time and labor management, payroll and benefits management, talent management, etc., dedicated to optimizing all workforce planning processes;
- services (1.7%).