Stock Analysis on Net
Stock Analysis on Net

Paycom Software Inc. (NYSE:PAYC)

This company has been moved to the archive! The financial data has not been updated since November 2, 2023.

Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

Paycom Software Inc., FCFE calculation

US$ in thousands

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12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net income 281,389 195,960 143,453 180,576 137,065
Net noncash charges 184,238 197,012 164,715 110,960 85,563
Changes in operating assets and liabilities (100,524) (73,610) (80,961) (67,273) (37,811)
Net cash provided by operating activities 365,103 319,362 227,207 224,263 184,817
Purchases of intangible assets (4,120) (5,500) — — —
Purchases of property and equipment (132,678) (120,692) (94,102) (92,934) (59,906)
Proceeds from the issuance of debt 29,000 — — — —
Payments on long-term debt (29,287) (1,775) (1,775) (1,775) (888)
Payment of debt issuance costs (6,436) — — (16) (58)
Free cash flow to equity (FCFE) 221,582 191,395 131,330 129,538 123,965

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Paycom Software Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Paycom Software Inc. FCFE increased from 2020 to 2021 and from 2021 to 2022.

Price to FCFE Ratio, Current

Paycom Software Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 57,700,820
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands) 221,582
FCFE per share 3.84
Current share price (P) 162.66
Valuation Ratio
P/FCFE 42.36
Benchmarks
P/FCFE, Competitors1
Cintas Corp. 49.82
P/FCFE, Industry
Industrials 31.36

Based on: 10-K (reporting date: 2022-12-31).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

Paycom Software Inc., historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
No. shares of common stock outstanding1 57,871,962 58,014,548 57,739,986 57,661,188 57,276,992
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)2 221,582 191,395 131,330 129,538 123,965
FCFE per share3 3.83 3.30 2.27 2.25 2.16
Share price1, 4 307.45 327.72 401.55 303.29 178.38
Valuation Ratio
P/FCFE5 80.30 99.34 176.54 135.00 82.42
Benchmarks
P/FCFE, Competitors6
Cintas Corp. 26.74 33.02 42.27 24.30 —
P/FCFE, Industry
Industrials 25.12 — 40.73 — —

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 221,582,000 ÷ 57,871,962 = 3.83

4 Closing price as at the filing date of Paycom Software Inc. Annual Report.

5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 307.45 ÷ 3.83 = 80.30

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Paycom Software Inc. P/FCFE ratio decreased from 2020 to 2021 and from 2021 to 2022.