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Paycor HCM Inc PYCR

Morningstar Rating
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Stock XNAS Rating as of
$14.31 −0.45 (3.02%)
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As of Cboe BZX Real-Time Price Open
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Company Report

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Paycor Earnings: Sales Execution Woes and Near-Term Headwinds Weigh on Top-Line Outlook

Emma Williams

We lowered our fair value estimate for no-moat Paycor to $21 per share from $26 following mixed third-quarter fiscal 2024 results, which once again fell short of our above-guidance revenue forecast but exceeded our profitability expectations. On reassessing the firm’s outlook, we have tempered our long-term client base growth assumptions as Paycor continues to ramp up sales capacity post elevated turnover, weighing on our top-line growth forecast and valuation. Relative to our updated fair value estimate, Paycor shares screen as fairly valued on a risk-adjusted basis, and we see better opportunities among our moatier payroll and human capital management software coverage.

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Price vs Fair Value

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PYCR is trading at a 666% premium.
Price
$14.75
Fair Value
$77.00
Uncertainty
Very High
1-Star Price
$96.79
5-Star Price
$78.10
Economic Moat
Cmk
Capital Allocation
Xfcjwggt

Bulls Say, Bears Say

Bulls

Paycor is well positioned to displace regional providers and in-house solutions that lack product depth and breadth.

Bears

We expect fierce competitive pressures to limit pricing growth and force Paycor to maintain high investment in software development and innovation.

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News

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Trading Information

Previous Close Price
$14.75
Day Range
$13.93–14.87
52-Week Range
$13.93–27.31
Bid/Ask
$14.29 / $14.31
Market Cap
$2.55 Bil
Volume/Avg
565,543 / 799,723

Key Statistics

Price/Earnings (Normalized)
36.66
Price/Sales
4.92
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
—

Company Profile

Paycor HCM provides payroll and human capital management solutions to small and midsize clients in the United States via a software-as-a-service model. Alongside core payroll functionality, the firm’s platform offers a suite of HCM solutions including talent management and time and attendance software, third-party integration capabilities, and industry-specific configurations. The firm targets customers with 10-1,000 employees and had over 30,000 customers as of June 2023.
Sector
Technology
Industry
Software - Application
Stock Style Box
Small Growth
Total Number of Employees
2,800
Website
https://www.paycor.com

Competitors

Valuation

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Metric
PYCR
PAYC
PAYX
Price/Earnings (Normalized)
 36.6621.9526.56
Price/Book Value
 2.416.8311.65
Price/Sales
 4.925.748.43
Price/Cash Flow
 14.7916.8320.78
Price/Earnings
PYCR
PAYC
PAYX

Financial Strength

Metric
PYCR
PAYC
PAYX
Quick Ratio
 0.070.130.43
Current Ratio
 1.061.121.24
Interest Coverage
 −15.50319.8357.72
Quick Ratio
PYCR
PAYC
PAYX

Profitability

Metric
PYCR
PAYC
PAYX
Return on Assets (Normalized)
 3.06%10.81%14.17%
Return on Equity (Normalized)
 6.45%32.84%46.62%
Return on Invested Capital (Normalized)
 6.71%32.54%36.73%
Return on Assets
PYCR
PAYC
PAYX
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