Paycom Soft Profit Margin vs. Net Income
| PAYC Stock | USD 207.23 0.24 0.12% |
Paycom Soft Net Profit Margin |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.66 | 0.8369 |
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| Operating Profit Margin | 0.15 | 0.2665 |
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For Paycom Soft profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Paycom Soft to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Paycom Soft utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Paycom Soft's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Paycom Soft over time as well as its relative position and ranking within its peers.
Paycom |
Paycom Soft's Revenue Breakdown by Earning Segment
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Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Paycom Soft. If investors know Paycom will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Paycom Soft listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.008 | Dividend Share 1.5 | Earnings Share 8.31 | Revenue Per Share 32.262 | Quarterly Revenue Growth 0.112 |
The market value of Paycom Soft is measured differently than its book value, which is the value of Paycom that is recorded on the company's balance sheet. Investors also form their own opinion of Paycom Soft's value that differs from its market value or its book value, called intrinsic value, which is Paycom Soft's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Paycom Soft's market value can be influenced by many factors that don't directly affect Paycom Soft's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Paycom Soft's value and its price as these two are different measures arrived at by different means. Investors typically determine if Paycom Soft is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Paycom Soft's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Paycom Soft Net Income vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Paycom Soft's current stock value. Our valuation model uses many indicators to compare Paycom Soft value to that of its competitors to determine the firm's financial worth. Paycom Soft is considered to be number one stock in profit margin category among its peers. It is regarded fifth in net income category among its peers making up about 1,321,908,456 of Net Income per Profit Margin. At present, Paycom Soft's Net Profit Margin is projected to increase slightly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Paycom Soft's earnings, one of the primary drivers of an investment's value.Paycom Net Income vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Paycom Soft |
| = | 0.26 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Paycom Soft |
| = | 340.79 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Paycom Net Income Comparison
Paycom Soft is currently under evaluation in net income category among its peers.
Paycom Soft Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Paycom Soft, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Paycom Soft will eventually generate negative long term returns. The profitability progress is the general direction of Paycom Soft's change in net profit over the period of time. It can combine multiple indicators of Paycom Soft, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -1 M | -1.1 M | |
| Operating Income | 451.3 M | 473.9 M | |
| Income Before Tax | 472.4 M | 496 M | |
| Total Other Income Expense Net | 21.1 M | 22.1 M | |
| Net Income | 340.8 M | 357.8 M | |
| Income Tax Expense | 131.6 M | 138.2 M | |
| Net Income Applicable To Common Shares | 323.6 M | 339.8 M | |
| Net Income From Continuing Ops | 339 M | 355.9 M | |
| Non Operating Income Net Other | 15.5 M | 16.2 M | |
| Interest Income | 414 K | 426.9 K | |
| Net Interest Income | -2.6 M | -2.5 M | |
| Change To Netincome | 105.2 M | 64.6 M | |
| Net Income Per Share | 5.91 | 6.20 | |
| Income Quality | 1.42 | 1.49 | |
| Net Income Per E B T | 0.72 | 0.60 |
Paycom Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Paycom Soft. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Paycom Soft position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Paycom Soft's important profitability drivers and their relationship over time.
Use Paycom Soft in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Paycom Soft position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Paycom Soft will appreciate offsetting losses from the drop in the long position's value.Paycom Soft Pair Trading
Paycom Soft Pair Trading Analysis
The ability to find closely correlated positions to Paycom Soft could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Paycom Soft when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Paycom Soft - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Paycom Soft to buy it.
The correlation of Paycom Soft is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Paycom Soft moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Paycom Soft moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Paycom Soft can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Paycom Soft position
In addition to having Paycom Soft in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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To fully project Paycom Soft's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Paycom Soft at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Paycom Soft's income statement, its balance sheet, and the statement of cash flows.