
Paycom Software (PAYC) Stock Forecast & Price Target
Paycom Software (PAYC) Analyst Ratings
Bulls say
Paycom Software has demonstrated significant growth, with its client base expanding from 12,800 in 2014 to over 37,500 in 2024, translating to a 16% compound annual growth rate (CAGR) during that period. The company has also benefited from rising interest rates, which, combined with the cross-selling of additional modules, has enhanced its revenue-generating capabilities. Furthermore, the increase in capital expenditures, from 7% to 13% of revenue, is indicative of strategic investments to support customer service enhancements and future growth initiatives.
Bears say
Paycom Software's projected revenue growth for 4Q25 indicates an 11% year-over-year increase, totaling $516 million; however, the company faces an anticipated decline of 15% in new annual recurring revenue (ARR). The significant depreciation from a $130 million investment in GPUs is expected to negatively impact gross margins, which may fall below current consensus estimates. Additionally, the company's customer retention rate has shown a concerning downward trend, declining from 94% in 2021 to 90% in 2023, driven by competitive pressures and the introduction of new initiatives like Beti.
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
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