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Paycom Software (MEX:PAYC) Piotroski F-Score : 7 (As of Mar. 15, 2025)


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What is Paycom Software Piotroski F-Score?

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Paycom Software has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Paycom Software's Piotroski F-Score or its related term are showing as below:

MEX:PAYC' s Piotroski F-Score Range Over the Past 10 Years
Min: 5   Med: 7   Max: 8
Current: 7

During the past 13 years, the highest Piotroski F-Score of Paycom Software was 8. The lowest was 5. And the median was 7.


Paycom Software Piotroski F-Score Historical Data

The historical data trend for Paycom Software's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Paycom Software Piotroski F-Score Chart

Paycom Software Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.00 8.00 7.00 5.00 7.00

Paycom Software Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 7.00 7.00 5.00 7.00

Competitive Comparison of Paycom Software's Piotroski F-Score

For the Software - Application subindustry, Paycom Software's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Paycom Software's Piotroski F-Score Distribution in the Software Industry

For the Software industry and Technology sector, Paycom Software's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Paycom Software's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec24) TTM:Last Year (Dec23) TTM:
Net Income was 4102.378 + 1245.217 + 1442.866 + 2368.478 = MXN9,159 Mil.
Cash Flow from Operations was 2466.801 + 2420.012 + 1826.886 + 3344.983 = MXN10,059 Mil.
Revenue was 8296.153 + 8015.265 + 8898.716 + 10300.067 = MXN35,510 Mil.
Gross Profit was 6991.172 + 6478.501 + 7159.019 + 8553.778 = MXN29,182 Mil.
Average Total Assets from the begining of this year (Dec23)
to the end of this year (Dec24) was
(71249.406 + 78554.456 + 79009.914 + 68768.964 + 122212.316) / 5 = MXN83959.0112 Mil.
Total Assets at the begining of this year (Dec23) was MXN71,249 Mil.
Long-Term Debt & Capital Lease Obligation was MXN1,314 Mil.
Total Current Assets was MXN89,780 Mil.
Total Current Liabilities was MXN81,479 Mil.
Net Income was 2150.31 + 1106.056 + 1310.232 + 1387.967 = MXN5,955 Mil.

Revenue was 8140.757 + 6877.087 + 7077.35 + 7377.365 = MXN29,473 Mil.
Gross Profit was 6964.95 + 5721.108 + 5876.474 + 6109.405 = MXN24,672 Mil.
Average Total Assets from the begining of last year (Dec22)
to the end of last year (Dec23) was
(76083.394 + 76455.237 + 67741.395 + 67169.026 + 71249.406) / 5 = MXN71739.6916 Mil.
Total Assets at the begining of last year (Dec22) was MXN76,083 Mil.
Long-Term Debt & Capital Lease Obligation was MXN962 Mil.
Total Current Assets was MXN47,755 Mil.
Total Current Liabilities was MXN43,023 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Paycom Software's current Net Income (TTM) was 9,159. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Paycom Software's current Cash Flow from Operations (TTM) was 10,059. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec23)
=9158.939/71249.406
=0.12854758

ROA (Last Year)=Net Income/Total Assets (Dec22)
=5954.565/76083.394
=0.07826366

Paycom Software's return on assets of this year was 0.12854758. Paycom Software's return on assets of last year was 0.07826366. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Paycom Software's current Net Income (TTM) was 9,159. Paycom Software's current Cash Flow from Operations (TTM) was 10,059. ==> 10,059 > 9,159 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec23 to Dec24
=1313.909/83959.0112
=0.01564941

Gearing (Last Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=962.44/71739.6916
=0.01341573

Paycom Software's gearing of this year was 0.01564941. Paycom Software's gearing of last year was 0.01341573. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec24)=Total Current Assets/Total Current Liabilities
=89779.617/81479.049
=1.10187365

Current Ratio (Last Year: Dec23)=Total Current Assets/Total Current Liabilities
=47755.349/43022.929
=1.10999762

Paycom Software's current ratio of this year was 1.10187365. Paycom Software's current ratio of last year was 1.10999762. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Paycom Software's number of shares in issue this year was 56.105. Paycom Software's number of shares in issue last year was 57.832. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=29182.47/35510.201
=0.82180526

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=24671.937/29472.559
=0.83711554

Paycom Software's gross margin of this year was 0.82180526. Paycom Software's gross margin of last year was 0.83711554. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec23)
=35510.201/71249.406
=0.49839294

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec22)
=29472.559/76083.394
=0.38737177

Paycom Software's asset turnover of this year was 0.49839294. Paycom Software's asset turnover of last year was 0.38737177. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+0+1+0+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Paycom Software has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Paycom Software  (MEX:PAYC) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Paycom Software Piotroski F-Score Related Terms

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Paycom Software Business Description

Traded in Other Exchanges
Address
7501 W. Memorial Road, Oklahoma, OK, USA, 73142
Paycom is a fast-growing provider of payroll and human capital management software primarily targeting clients with 50-10,000 employees in the United States. Paycom was established in 1998 and services about 19,500 clients as of 2023, based on parent company grouping. Alongside its core payroll software, Paycom offers various HCM add-on modules, including time and attendance, talent management, and benefits administration.