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Is this Large Market Cap Stock target price reasonable for Paycom Software, Inc. (NYSE:PAYC)?

The company in question is, Paycom Software, Inc. (NYSE:PAYC) currently with a stock price of 49.91 (-0.04% today). The market cap for Paycom Software, Inc. is 3003.29, and is in the sector Technology, and Application Software industry. The target price for Paycom Software, Inc. is 55.36. Currently Paycom Software, Inc. is trading with a P/E of 78.02, and a forward P/E of 52.06. Average volume for Paycom Software, Inc. is 617.71 and so far today it is 205663.

Performance in the last year for Paycom Software, Inc. has been 25.61%. For EPS growth, Paycom Software, Inc. has seen a growth of 227.00%, and is looking to grow in the next year to 24.38%. More long term stats show that EPS growth has been 278.60% over the last five years and could be 50.80% for the next five years. Paycom Software, Inc. has seen sales growth quarter over quarter at 50.80%, with EPS growth quarter over quarter at 72.10%. The 20-day simple moving average is -0.38%, with the 200-day simple moving average coming to 23.95%.

Since the IPO date for Paycom Software, Inc. on the 4/15/2014, Paycom Software, Inc. has seen performance year to date to be 32.69%. With Paycom Software, Inc. trading at 49.91, the dividend yield is *TBA, and the EPS is 0.64.

So could Paycom Software, Inc., be undervalued? Well as said before P/E is 78.02. The PEG is 1.54, P/S is 10.56 and the P/B is at 22.29. The P/cash is 37.12, with P/free cash flow at 77.6.

Paycom Software, Inc. ability to deal with debt shows that the current ratio is 1, and the quick ratio is 1. This is with long term debt/equity at 0.22, and total debt/equity at 0.23.

In terms of margins, Paycom Software, Inc. has a gross margin of 84.90%, an operating margin of 20.30% and a profit margin of 13.10%.Payout ratio for Paycom Software, Inc. is 0.00%. Return on assets come to 3.50% with return on investment coming to 17.60%.

Insider ownership for Paycom Software, Inc., is at 10.80% and institutional ownership comes to 81.80%. Outstanding shares are at 60.15. While shares float is 47.3. The float short is currently 17.62%, and short ratio is 13.49.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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