Very informative post. Thank you. I had my eyes on it as a research candidate when it was trading around 160ish recently. Then once it went over 200 I kind of lost interest, probably due to anchoring bias.
In hindsight $160 was a great opportunity, I bought a little, but not enough.
Today I still think it is an attractive opportunity, the company has posted several quarters of accelerated growth that should give investors confidence that the slowdown is only temporary
Did you capitalize intangible assets to calculate capital employed? And how do you think about the share buybacks and dividends? Does Paycom simply generate too much cash to redeploy?
Yes they are capitalised, however it’s a relatively small figure.
It is likely that both will play an increasingly important role. The company is investing significantly in R&D and new sales teams when they can get a manager to relocate. However, these investments can only go so far.
Very informative post. Thank you. I had my eyes on it as a research candidate when it was trading around 160ish recently. Then once it went over 200 I kind of lost interest, probably due to anchoring bias.
In hindsight $160 was a great opportunity, I bought a little, but not enough.
Today I still think it is an attractive opportunity, the company has posted several quarters of accelerated growth that should give investors confidence that the slowdown is only temporary
Thanks for the great analysis. I digged into PAYC last summer when the stock traded around 140$.
However, I lost track on it when it popped up over 200$ last fall
Thank you! I hope it provides some value, at those levels it was a great opportunity!
Damn, what a valuable article on Paycom. Thank you for the value! Gonna need some time to properly read it.
Thanks Felix! I hope you enjoy it
Did you capitalize intangible assets to calculate capital employed? And how do you think about the share buybacks and dividends? Does Paycom simply generate too much cash to redeploy?
Yes they are capitalised, however it’s a relatively small figure.
It is likely that both will play an increasingly important role. The company is investing significantly in R&D and new sales teams when they can get a manager to relocate. However, these investments can only go so far.