From Quiver Quantitative:

Hedge funds and asset managers have been increasing their holdings in Paycom Software Inc. (NYSE: PAYC) as per the recent institutional holdings data by Quiver Quantitative. Firms including Alyeska Investment Group, Dimensional Fund Advisors, and Geode Capital Management have been adding to their PAYC positions. Highlights of Paycom Software’s recent earnings report for the third quarter of FY23 include total revenues of $406.3 million dollars (21.6% increase YoY) and a GAAP net income of $75.2 million dollars (44.1% increase YoY). Management also provided guidance into FY23 revenue and adjusted EBITDA, guiding for total revenues of $1.679 – $1.684 billion dollars, implying a 22.1% YoY increase in revenue. Paycom Software offers cloud-based human capital management (HCM) solutions delivered as Software-as-a-Service (SaaS) and its unique selling proposition lies in its single-database, user-friendly platform. Paycom Software operates in a dynamic and fiercely competitive human capital management (HCM) solutions market, competing with companies like Automatic Data Processing, Ceridian HCM Holding, Oracle Corporation, and Workday. Paycom Software’s founder and CEO, Chad Richison, owns nearly 8% of the entire business, which adds to investor confidence. The business currently operates at a LTM ROE of 27.1% and a LTM ROIC of 28.2%, showcasing its ability to generate excess returns on capital and its efficient operations. Over the last ten years, the business has seen strong sustained growth in operating income, with an expansion in EBIT margins. Paycom Software has grown revenue at a CAGR of 29% and gross profit at a CAGR of 29.8% over the last ten years, with consistent gross margins above 82% of revenue. Paycom Software has grown EBITDA at a CAGR of 40.3% and EPS at a…



Read more: The Bull Case for Paycom Software Inc. (NYSE: PAYC)