Provides cloud-based human capital management (HCM) solutions. Offers software-as-a-service (SaaS) for small to mid-sized companies. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
This is an established company with proven profits.
Average growth of 18% a year over the last 4 years. Every year shown ended in profit.
The market pays 21.8× for every dollar of annual profit — around what a business like this usually costs.
Against companies in its own sector, it looks cheaper than 64% of them.
Analysts' average target sits 8% below today's price.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Profit power and business quality lead the class.
The cash pile is strong; debt and other items pull the grade toward the middle.
The price isn’t cheap next to earnings — that’s why this grade sits in the middle.
Clearly above the class average — a step short of the very top.
The stock has been running stronger than the market lately.
No real weak spot in any of the five subjects — a balanced report card.
An investor who bought at the very peak is down 60% today. The business is the same; what changed most is the price — and the expectations — the market pins on it.
The net profit margin is 22% — still a thick cushion, though costs have been eating into it lately.
Over the last 4 years, sales grew about 18% a year on average.
There is $370M in the vault; even if every debt were paid off, $217.8M would remain.
Our checks did not surface a specific risk to flag here. That is not the same as there being none.
On our five-subject report card, PAYC sits near the top of the class. A high grade doesn’t mean “guaranteed win” — it means “the evidence looks strong for now.”
The takeaway: PAYC is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s what that quality should cost.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.