PAYC - fast growing and profitable

Today I had a look at Paycom, a provider of human resources technology/software. They are fast growing, profitable and have a recurring revenue feature which I like very much. Especially earnings seem to be accelerating.

Revenues are as follows:

2015: 54.3
2014: 36.5  33.3  35.9  44.5  Total 150.2
2013: 27.2  23.4  25.1  29.9  Total 105.6 
2012: Total 75.4
2011: Total 56.4

Earnings

2015: 5.99
2014: 1.06  -0.50  2.70  2.4  Total: 5.66
2013: 2.60  0.36  -0.4  -1.96 Total: 0.6

Anybody familiar with this company?

Best
Thomas
2 Likes

Here’s a link to an article from TMF on PAYC:
http://www.fool.com/investing/general/2014/07/23/three-small…

Anirban

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So I am big time newbie on the "Saul's 1YPEG" approach, but I am learning so much, and very much appreciate the advice and encouragement by the members on this board.

I wanted to try out the calculations on PAYC, and here is what I get:

	             12/31/2014	         3/31/2015
End Stock Price 	 26.33 	          32.06 
		
non-GAAP EPS for qtr	  0.06	           0.12
non-GAAP TTM EPS	  0.18	           0.27
EPS Growth rate	           200%   	   575%
non-GAAP TTM PE Ratio	  146.28	118.74
1YPEG-non-GAAP	          0.731 	 0.207 

I am only showing the last 2 qtrs for the info, so as to make the typing easier.

the 1YPEG is pretty low, under 1.  
But I am not sure I did all the calcs properly.

Does this seem like a possible candidate?
Thanks,
Jon
4 Likes

Jon,

It appears the TTM EPS growth rate should be 50%. You list 575%. I see a 9 cent gain on an 18 cent basis.
This would also change the 1YPEG to 2.36 or so.

Check this carefully as I’m no expert please.

Regards,
A.J.

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Wow - it is hard to get this info in here!

	               12/13    3/14    6/14     9/14    12/14    3/15
End Stock Price                 16.25    14.59	 16.56	 26.33    32.06 
						
non-GAAP EPS	    	  -      0.03      0.04   0.05 	 0.06 	 0.12 
non-GAAP TTM EPS	 0.06 	 0.04 	   0.07   0.12 	 0.18 	 0.27 
EPS Growth rate					         200%     575%
non-GAAP TTM PE Ratio		 406.3     208.4  138.0  146.3   118.7 
1YPEG-non-GAAP					         0.731   0.207 

So, the 575% growth rate is based on a .27 vs the year earlier .04

I wasn't showing the earlier data as I have a hard time getting the info into this message.
3 Likes

The growth rate comparison is not this year to last year same period, but the last 4 periods totaled vs the 4 periods prior to that. This takes lumpy seasonality and flukes out of the picture … mostly.

Congratulations Jon it looks like you have it correct. That is some amazing growth. They only became public the first quarter of 2014.

Andy

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