Paycom Q2 Thoughts
Aug 4, 2024
Paycom delivered 9% revenue growth in Q2, with a solid 21.7% free cash margin. This is a pretty reliable company going through a bit of a revenue lull as its efficient BETI platform saves its customers money, but costs Paycom error correction revenue. That's ok with me - doing right by your customers at the cost of short-term sales is good business. The company also doubled its buyback authorization, a good move with the stock trading 40% under our fair value. Paycom is also back to a single founder-CEO arrangement after co-CEO Chris Thomas abruptly left in May. I'm ok with that - founder Chad Richison knows what he's doing - but it does raise a bit of concern about eventual succession. I'm raising the fair value by a few bucks to $286.
Follow @GreenDotStocks
Information contained on this website represents only the opinions of the author and should not be used as the sole basis for investing decisions. By using this site, you agree to all statements in the Site Policy.
Watch List
| S | 9.56% |
| CRWD | 67.13% |
| SEMR | -18.34% |
| SNOW | 7.62% |
| TSM | -0.30% |
vs. Fair Value Estimates
Buy List
| ZETA | -26.29% |
| GOOG | -33.78% |
| NYAX | -59.56% |
| ODD | -25.43% |
| ASR | -32.09% |
| PAYC | -29.50% |
| HRMY | -49.91% |
| YOU | -44.76% |
| MELI | -30.21% |
| ADBE | -31.20% |
vs. Fair Value Estimates
Hold List
| MSFT | -23.32% |
| FLYW | 4.57% |
| CELH | -19.22% |
| TOST | 29.40% |
| CPNG | -5.45% |
| HIMS | -10.11% |
| MNDY | 12.04% |
| GLBE | 16.00% |
| ZS | 15.91% |
| V | -12.66% |
| ADSK | 11.43% |
| NOW | 47.68% |
| ABNB | -21.07% |
| FTNT | 2.29% |
| TEAM | 10.31% |
vs. Fair Value Estimates