As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Paycom Software, Inc. (NYSE:PAYC), it is a company with robust financial health as well as a buoyant growth outlook. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, take a look at the report on Paycom Software here.
Exceptional growth potential with flawless balance sheet
PAYC is an attractive stock for growth-seeking investors, with an expected earnings growth of 23% in the upcoming year. This growth in the bottom-line is bolstered by an impressive top-line expansion of 52% over the same period, which is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. PAYC’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that PAYC has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. PAYC seems to have put its debt to good use, generating operating cash levels of 5.3x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For Paycom Software, I’ve compiled three pertinent aspects you should look at:
- Historical Performance: What has PAYC’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Valuation: What is PAYC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether PAYC is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PAYC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.