Paycom: Solid Q4, But Growth Slowing
Feb 13, 2025
Paycom ended its fiscal year with a good Q4 that saw revenues rise 14% and strong profitability metrics. The company continues to focus on automation and client ROI as differentiators. This is still a good company that is well-run, but the growth well seems to be drying up. Client count was flat for the year, and revenue guidance for 2025 was just +8%, which was well below my modeling of +11%. This could also be a harbinger of slowing jobs growth. Whatever the case, Paycom is a worthy hold but I wouldn't add money to it. The updated fair value price is $278.
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