PAYCOM (PAYC): STOCK TO BUY NOW? I LIKE IT!

Over the past 3 years Paycom, or PAYC STOCK, has lost nearly 70% of its value due to a rich starting valuation, disappointing Wall Street estimates, and internal turnover with the top executives. Despite these challenges, PAYC has a fantastic business model, lots of free cash flow, is founder led, trades at a below market multiple, and has a net cash balance sheet. I think PAYC stock has the potential to outperform the broader indices in the years ahead. Thumbs up!
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[@unrivaled]

Paycom (PAYC stock) has a lot of what I'm looking for: Strong free cash flow, recurring revenue, founder led and a below market valuation. I'm giving my thumbs up for Paycom! Is it DEEP VALUE? Around ~21x earnings probably not, but sometimes investors pay up for great businesses. Obviously this is not advice and I don't own shares in PAYC stock at the time of this publication, though that may change. For more updates on compelling investment ideas consider www.unrivaledinvesting.com

[@PopeyeSailor-wz7ew]

60's are retirement age. 🤷 Shouldn't have been a surprise, however. CFO leaving suddenly is a red flag. 🚩 This is particularly troubling when the stock is tanking.

[@michaelfriend3990]

The buyback is extremely positive

[@sagig72]

PYPL is a much better bet. Also SOFI is (despite riskier).

[@Aboulchad002]

Sofi is the next bug thing....

[@mrmo3379]

​Bug thing ...

[@michaelcorbi7335]

PayPal has no moat and tons of competition. Gonna trade sideways for years like it already has. Paycom not good either

[@Aboulchad002]

@@mrmo3379 🤣

[@goodyearspokane]

Noto is a beast at buying his own stock

[@konstantingeorgiev7521]

Noto? What does he have in common with Paycom?

[@goodyearspokane]

@@konstantingeorgiev7521 just comparison against the Paycom guy seelling frantically

[@drezzzzy]

@unrivaled Thank you for doing this work! It is very valuable. Can you do a deep dive on BILL please?

[@Adarsh1024]

I bought and sold this multiple times for profit. What's stopping me from buying again is due to new payroll companies being more easy to operate with for small businesses. Once they start growing, they might eat into payc growth.

[@unrivaled]

A very real risk! There are also smaller competitors that are growing faster.

[@trentslayton6300]

Do Shift 4

[@petertratz8016]

🎉

[@brianmalone3635]

Thanks for your thoughts on PAYC. I have a full position but have been considering adding just a little.

[@ernestngu613]

Good to see how they manage to have high percentage of recurring revenues, but I wonder how is management like for this company? Seems like most comments on Glassdoor isn’t very positive.

[@silverheart573]

Thanks for your continual effort in sharing quality stock analysis approaches on your KZbin channel. Can you help to share your insights on Cccs technology holding too ?

[@unrivaled]

What's the thesis?

[@silverheart573]

@@unrivaled my Opinion on this company so far is that CCCS Technology Holdings operates in the growing insurtech sector, offering cloud-based software and data analytics solutions primarily for the automotive insurance industry. The company has a strong market position, with a significant client base and a recurring revenue model that provides stable cash flows. CCCS’s platform is scalable, enabling potential for expansion with low incremental costs. The company also has opportunities for cross-selling, entering adjacent markets by pursuing the horizontal integration across the ecosystem to create greater network effect and switching cost . Given its alignment with long-term trends in digital transformation and big data, CCCS seems well-positioned for sustained growth in the trend of insurance transformation for improved operations efficiency . However, their high operation cost for SGA , especially the SBC, have me concern. I would appreciate your expert opinion on this investment thesis, especially regarding the growth potential, operation expenses and any key risks that might impact CCCS’s future performance.

[@silverheart573]

@@unrivaled CCCS Technology Holdings is an interesting player in the insurtech space. They've built a strong foundation with a solid US client base and recurring revenue. Their focus on data analytics and cloud-based solutions aligns well with industry trends for operation efficiency improvement. Their horizontal integration across ecosystem helps to widen their switching cost . However, high operating costs, particularly in SGA and SBC, as well as the slower than expected rate of adoption for their new products could be a concern. It'll be interesting to see how they manage this as they grow. What are your thoughts on CCCS? Do you see similar trends in other insurtech companies?

[@michaelcorbi7335]

I have friends that work in the industry. I don’t love what I hear about them/management

[@parupalu]

what do you think of STNE?

[@edwardtodd-ih6xw]

I’d like you to present on sabre corporation

[@mikecole1664]

Did you say if you own it or not?

[@sahasra9]

Thoughts on Paylocity Holding Corporation (PCTY)

[@gavin2730]

The worst company I ever worked at had huge amounts of VP turnover. Toxic and ignorant of progress from top to bottom

[@MrAnarchocapitalist]

That guy has about 6 years of selling left to do at his current pace, assuming he isn't awarded any more in the mean time.