Bull of the day: Paycom Software (PAYC) – June 3, 2022

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Paycom software (PAYC Free Report) is a $17 billion provider of integrated HR services for businesses. Shares jumped above $500 last fall after another strong earnings report prompted analysts to raise estimates and targets.

A more uncertain outlook for the next two quarters has seen stocks fall in the software/cloud bear market of the past six months.

But all that could be about to reverse, as the company’s report on first-quarter 2022 beats and rises prompts analysts to raise estimates yet again.

PAYC is expected to generate revenue this year of $1.33 billion, representing annual growth of 26.4%. And the consensus EPS forecast is $5.53, a 23.4% lead.

Shark Tank’s Barbara Corcoran likes the app for that

Just like the big peers Automatic data processing (ADP free report) and Payment (PAYX Free Report), Paycom provides the features and data analytics businesses need to manage the full employment lifecycle, from recruitment to retirement. Its HCM (Human Capital Management) solution offers a suite of applications in the areas of talent acquisition, time and labor management, and payroll.

But where the David among the Goliaths broke new ground faster was with a smartphone app that lets employees access and engage their data at will. You’ve probably seen the ads where Barbara Corcoran from Shark Tank shows off the nifty features of the on-the-go HR app.

Bringing HCM to people

Here’s how Paycom’s website describes the challenges they solve…

Still clinging to multiple outdated HR systems and processes? Whether you use bad technology, too much technology, or no technology at all, the results are the same: productivity suffers and frustrations increase.

With Paycom, employees can enter and manage their own HR data in a single, easy-to-use software. When they do, the weight of inefficient processes is ultimately lifted to transform your entire organization for the better.

Here are the lists of Paycom benefits for companies that offer their employees a self-service HR platform accessible on their smartphone…

HR is freed from this administrative burden
Distributed efficiencies across the enterprise
Employee engagement increases
Data accuracy increases
Return on investment is maximized

FinTech… of HR and Payroll?

Founded in 1998, Paycom offers analytics that manage the full employment lifecycle, from recruitment to retirement, with cloud-based SaaS human capital management (HCM) solutions for employee records, payroll and talent management processes.

Oklahoma City-based Paycom serves more than 23,500 customers in all 50 states, or nearly 12,700 customers based on the parent company’s pool. Its human resources services include pension services administration, workers’ compensation administration, employee benefits solutions, professional organizing of employers and other administrative services for businesses.

Paycom’s HCM solution offers a comprehensive suite of applications that generally fall into the following categories: Talent Acquisition, Time and Labor Management, Payroll, Talent Management, and HR Management.

Its HCM software streamlines and automates many day-to-day record-keeping processes and provides a framework for HR staff to manage benefits and payroll administration, plan for succession planning, and document things like staff actions. and compliance with industry and/or government regulations.

Ideally, cloud-based HCM reduces administrative burden on employers and increases employee productivity and retention.

Instant access = increased engagement

In the era of HCM, employers are looking for new ways to empower employees and encourage engagement. Since it is easy to overlook the total benefits one receives from a corporate job, the ability to instantly access key information and choices at the touch of a finger is a synergistic bonus for everyone. .

This access can include tasks and things like request time off, view compensation, expenses, documents, and even performance.

This may be one of the reasons why Paycom has such a rich valuation, as it helps companies merge into the FinTech universe that their employees as consumers have become accustomed to with applications and access at their fingertips. tomorrow.

It certainly makes sense since we can access everything else in our financial life this way.

FinTech for the people

In fact, the best companies will take “financial literacy” to new levels of responsibility, going beyond just giving a 401k with a match to teaching their employees how to organize and manage their entire financial lives.

I see a giant opportunity for all HCM companies, including Working day (WDAY free report) and Paylocity (PCTY Free Report), to provide a personal finance platform for businesses that integrates with their existing tools. This type of engagement and education could further increase employee satisfaction and retention.

And on the Mind Over Money podcast recently, I spoke with veteran financial planner Mark Harvey about his brainchild for personal finance, The Harvest Plan.

Here is an excerpt from the article version of the podcast…

Get yourself a MoneyPlan coach

When it comes to personal finance, there are many gurus, from Dave Ramsey to Suze Orman. But I doubt they have what my guest today has in terms of experience and tools. Today we’ll introduce Mind Over Money listeners to a financial advisor that combines the best elements of coaching with a rich platform of strategies and decision tools to get your money game in top shape.

In the podcast, we meet Mark Harvey, a 30-year-old finance professional who has served all areas of consumer finance and he has some of the best fiduciary credentials, including RIA, Registered Investment Advisor and the most trusted advocate role. high that you can get from the IRS. at the service of its customers, that of the Registered Agent.

Mark is also the creator of The Harvest Plan software platform, which is the best and most comprehensive portal I have ever seen for managing your gambling, mortgages, credit, taxes and debt. debt elimination to savings, investments, college planning and retirement.

And there’s a reason they call it The MoneyPlan Coach: Every aspect of your financial life includes step-by-step video tutorials where Mark walks you through how to use the system to organize your total money game. So I was thrilled to have it on the program and find out how this amazing platform, The Harvest Plan, helps us set our money game, activate it, and be ready for anything.

And here is the link to the podcast and the full article…

Get Your Money Game in Top Shape with MoneyPlan Coach Mark Harvey

Conclusion: Buy PAYC while you can still approach $300 (it’s up more than 6% as I write this on Thursday). And check out a free trial of The Harvest Plan while you can before a big HCM software company buys them and only offers it to its customers.

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