Paycom Software, Inc. (Payc): Taurus’s case theory

We encountered a Saudi thesis On Paycom Software, Inc. (Payc) on STIMBAD by Saabar Capital. In this article, we will summarize the bull thesis on Payc. Paycom Software, Inc. (Payc) at $ 227.37 as of May 2^{The second abbreviation}. Payc was luminous and Imam P/E 25.49 and 26.18, respectively, according to Yahoo’s funding.

Provides Paycom Software Inc. , Founded in 1998, the solutions of human capital management based on the HCM group that is presented as a program (SAAS) in the first place for small American companies to medium -sized. The company offers an integrated platform for salary statements, talent acquisition, human resource management, and other HCM functions, all of which are kept in one database to ensure ease of use and get rid of the need for third party integration. This system reduces easy to use from administrative burdens, allowing employees to manage their HCM activities in the cloud and increase productivity for employers. Paycom’s revenues are primarily from frequent sources, such as salary lists and talent management tools, as well as a smaller share of implementation fees and benefits acquired on the money detained for customers.

Paycom’s competitive advantage lies in its smooth integration in all applications, which makes implementation more simple and faster than competitors who depend on third -party systems. Although this closed system approach has negative aspects, it allows Paycom to launch innovations such as the BETI transactions, which enables employees to review and approve salary checks, simplify salary lists and reduce errors. Despite some of the effects of short -term revenue from this feature, Paycom has maintained a strong annual retention rate of more than 90 %, indicating the loyalty of the strong customer.

The company operates in the highly competitive HCM market, as it includes the main competitors ADP, Paycor and Paylocity. Although Paycom is the second largest seller of salary statements in the United States, it has constantly outperformed the market growth, as it has achieved an increase in annual revenue about 30 % since the subscription of the year 2014. However, the company faces continuous pressure from competitors and the potential risks of the risk of large companies that transport the market, which may erode its customer base. To combat this, Paycom expanded to new markets, including international areas such as Canada, the United Kingdom and Mexico, and explores high expansion in large companies.

Financial, Paycom is still in a strong position, with zero debt and fixed growth despite the challenges in the revenue of salary statements. The company’s ability to innovate and provide value through each of the services of salary and unrestricted lists will be the key to maintaining its momentum. However, Paycom should continue to distinguish itself in the competitive scene to avoid losing its share in the market. The company’s focus on creating products and attitudes around customers has a good manner for long -term success, although it must move in competitive pressures and the risk of assembling the largest players to collect customers.