
Paycom Software (PAYC) Stock Forecast & Price Target
Paycom Software (PAYC) Analyst Ratings
Bulls say
Paycom Software has demonstrated robust growth, with its client count increasing from 12,800 in 2014 to 37,500 in 2024, reflecting a compound annual growth rate (CAGR) of 16%. The company has capitalized on rising interest rates and has successfully expanded its offerings by cross-selling additional modules, contributing to its strong revenue generation from subscription services. Additionally, the rise in capital expenditures as a percentage of revenue indicates a strategic investment in technology to support future growth and enhance service delivery across its customer base.
Bears say
Paycom Software is projected to achieve $516 million in recurring and other revenue for 4Q25, reflecting an 11% year-over-year growth, while new annual recurring revenue (ARR) is anticipated to decline by 15%. Additionally, the company may face pressure on gross margins due to depreciation related to a $130 million investment in GPUs, potentially lowering margin percentage below current market consensus. Furthermore, a concerning trend in customer retention is evident, having decreased from 94% in 2021 to 90% in 2023, largely attributed to the competitive pressures stemming from the rollout of its Beti platform.
This aggregate rating is based on analysts' research of Paycom Software and is not a guaranteed prediction by Public.com or investment advice.
Paycom Software (PAYC) Analyst Forecast & Price Prediction
Start investing in Paycom Software (PAYC)
Order type
Buy in
Order amount
Est. shares
0 shares